Strategy and Productivity

Selected Slides from Jacobs et al, 9th Edition

Operations and Supply Management
Chapter 2
Edited, Annotated and Supplemented by
Peter Jurkat

What is Operations and Supply Strategy?

Definition

Competitive Dimensions

Operations and supply

strategy is concerned with
setting broad policies and
plan for using the resources
of a firm to best support its
long-term competitive
strategy.

Cost or Price

Make the Product or Deliver

the Service Cheap

Quality

Make a Great Product or

Deliver a Great Service

Delivery Speed

Make the Product or Deliver

the Service Quickly

Delivery Reliability

Deliver It When Promised

Coping with Changes in

Demand
Change Its Volume

Flexibility and New Product

Introduction Speed
Change It

Other Product-Specific
Criteria
Support It

2-3

Operations and Supply Strategy Framework

Productivity
Productivity is a common measure on how
well resources are being used. In the
broadest sense, it can be defined as the
following ratio:
Total Measure Productivity = Outputs
Inputs

= Goods and services produced

All resources used

2-5

See Ch02_Productivity_Measures.xlsx; no you do Problems 3 and 5

2-6

Investment Advisor Efficiency Measures