Professional Documents
Culture Documents
Management
Operations Strategy
Chapter 2
Business Elements
Structural
buildings, equipment, technology,
computer systems
Infrastructural
organization, planning & control,
decision rules, quality management,
purchasing, product/service development
( Personnel )
Mission
The organizations purpose for being; provides
boundaries and focus
Strategy Process
Mission Statement
Business Strategy
- Targeted customers / markets
- Areas of sustainable competitive advantage
- Role of supply chain partners
- Time frames & performance objectives
Strategic
Operations Strategy
- Translate business strategy into
operations & supply chain actions
- Provide value to targeted customers
- Develop supporting core competencies
Alignment
Quality
Performance quality
Business
Strategy
Conformance quality
- Targeted customers / markets
- Areas-of sustainable
competitive advantage
Reliability
quality
- Role of supply chain partners
Time
Delivery
speed
- Time frames & performance
objectives
Delivery reliability
Flexibility Volume flexibility
Mix flexibility
Operations StrategyOther Functional Strategies
- Translate business strategy
- Marketing flexibility
- into Changeover
operations & supply chain actions
- Finance
Cost
Low-cost
operations
- Provide value to targeted customers
- Human
Resources
- Develop supporting core competencies
Supplier A
Supplier B
Conformance
quality
Delivery
3 days
2 days
Cost
$30 / liter
$20 / liter
Flexibility
Operations Strategy
Mission Statement
Operations strategy
Services
Business StrategyManufacturing
Customized
Make-to-order
servicescustomers / markets
- Targeted
Assemble-to-order
Assemble-to-order
- Areas of sustainable competitive
advantage
Standardized
Make-to-stock
services
- Role
of supply chain partners
- Time frames & performance objectives
Process decisions
Operations
Strategy
Quality
decisions
Other Functional Strategies
Capacity,
location,
- Translate business
strategy
into and layout decisions
- Marketing
Operating
operations & supply
chaindecisions
actions
- Finance
- Provide value to targeted customers
- Human Resources
- Develop supporting core competencies
- Research & Development
- Engineering
Operations Strategy
Service Strategies
Manufacturing Strategies
Individualized services
e.g. Paper
faster
- Translate business strategy into
- Marketing
operations & supply chain actions
- Provide value to targeted customers
- Develop supporting core competencies
- Finance
- Human Resources
- Research & Development
- Engineering
Strategic
Operations Strategy
- Translate business strategy into
operations & supply chain actions
- Provide value to targeted customers
- Develop supporting core competencies
Alignment
Specific
Strategy Used
Examples
Quality
Product
FLEXIBILITY
Process
Design
Volume
LOW COST
Location
DELIVERY
Layout
Human Resource
Supply Chain
Speed
Dependability
Maintenance
Differentiation
(Better)
QUALITY
Conformance
Performance
Inventory
Scheduling
Competitive
Advantage
AFTER-SALE SERVICE
Cost
leadership
(Cheaper)
Response
(Faster)
Summary
Strategy is how we accomplish our mission
Functional strategies must be aligned to support
the business strategy
OM goals are to be faster, better and/or cheaper
Operations strategy: