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Operations Strategy: Block 1 - Reading 12 - Coggle Diagram
Operations Strategy: Block 1 - Reading 12
Definition & Core Drivers
Frequently lacks director-level operations managers, leading to incremental rather than purely planned strategies.
Drivers: Market Requirements, operational competencies/capabilities (e.g., Honda engines) and entrepreneurial vision (e.g., Benihana restaurants).
Pattern of strategic decisions and actions setting the role, objectives and activities of an operation (Slack et al., 2010)
Four Key Decisions Areas
Supply Chain Development (Value Chain Ownership, Number of Suppliers, Global Network, Outsourcing, Long-Term Relations).
Technology (Automation Level, System Integration, Dedication, Scale, User Base).
Capacity and Facilities (Number of Sites, Size, Location, Lead vs. Lag Timing, Coordination).
Workforce (Management Hierarchy, Planning Centrality, Department Grouping, Skills Development, Employee Discretion, Shift Patterns).
Six Generic Performance Objectives
Speed (Response Time/Response Rate vs. Throughput Time).
Flexibility
Types: Variety, Mix and Volume Flexibility
Modes: Response Flexibility and Range Flexibility
Quality (Specification vs. Conformance Quality, Perceived Quality, Zero Errors).
Dependability (Schedule Adherence, Keeping Delivery Promises, Low Process Variation)
Cost (Unit Cost, Materials, Labour, Equipment, Working Capital, Lean/Stockless Production)
Sustainability (Environmental, Economic and Social Dimensions)
Focused Operations ('Focused Factory')
Concept introduced by Wickham Skinner (1974) to prevent unfocused operations from trying to do too many things.
Four Ways to Focus Operations
By Performance Objective/Speed (e.g., fast-tracked lanes)
By Volume (e.g., Fyodorov high-volume eye surgery factory)
By Market Segment (e.g. Shouldice Hospital hernia clinic)
By Technology Speciality (e.g., Coxa joint repair specialists, diagnostic units)
Strategic Reconciliation Model
Market Reconciliation: Configuring and managing resources to fit market requirements.
Short-Term: Managing fixed infrastructure to meet immediate market demand.
Long-Term: Reconfiguring infrastructure to adapt to anticipated market shifts.
Evaluating Market Fit & Competition
Polar Diagrams (Visualising comparative segment profiles, such as OEM vs. Spares
Product Life Cycle Alignment (Shifting order-winners and qualifiers across Introduction, Growth, Maturity and Decline stages)
Order-Qualifying Criteria (Baseline performance thresholds required to even be considered)
Performance Trade-offs & Cumulative Improvement (Acknowledge trade-offs vs. the sandcone model)
Ordering-Winning Criteria (Key reasons customers choose a product or service)