Professional Documents
Culture Documents
Operations strategy
Corporate strategy
Business strategy
Operations strategy
Operational experience
Un-realized Strategy
Emergent Strategy
External
Competitiveness
Strong marketing
Developing the resources which let the operations performance stay ahead of the competition
Operations strategy reconciles the requirements of the market with the capabilities of operations resources
Operations Capabilities
Performance Objectives
Market Positioning
Operations Processes Understanding resources and processes Strategic decisions Required performance
Competitors Actions
Understanding markets
Operations strategy is the strategic reconciliation of market requirements with operations resources
Operations Resources
Market Requirements
What you DO
to maintain your capabilities and satisfy markets
Strategic Reconciliation
Capacity
Human Resources
Quality
Facilities
Sourcing
Operating Systems
Assemble to-order
How much?
Excess Demand
Capacity Changes
Capacity
Facilities Workers
Best Size
Facilities
3 4
5
Global
People Systems
Supervision methods
Freedom
Policies
Individual or Teamwork
Mgt. Levels Training
Profit sharing
Quality
Target level
QA Systems
Measurement
Empowerment
Awareness
Evaluation of Efforts Customer Perception
Training
Supplier
1 2 3 4 5 Vertical integration Supplier selection Supplier relationship Supplier quality Supplier coorperation
Operating System
Execute strategy daily
IT Support
Alignment of inventory levels and schedule
A statement of the principles and policies which guide the operations activities
The way in which the guiding principles and policies are developed
Design
Improvement
Performance objectives Then, the operations will need to excel at these ...
Cost Quality Speed Dependability Flexibility (products/services) Flexibility (mix) Flexibility (volume and/or delivery)
The stage of the organizations products and services in its life cycle.
Delivery Flexibility
Concept
Speed of Prod Dev Delivery Speed
Delivery Reliability
Competing On Cost
Eliminate All Waste Invest in Latest Tech Streamline Operations
Competing On Quality
Please
The
Customer
Competing on Flexibility
Modify existing products quickly Produce wide variety of products Introduce new products
Competing on Speed
Rapid Prod Dev
Fast moves
Fast adaptations Tight linkages
Strategy Process
Environmental Analysis Company Mission Business Strategy Functional Area Strategies Marketing Decisions Operations Decisions Fin./Acct. Decisions SWOT Analysis
Mission
Organizations purpose for being
Provides boundaries & focus Answers How can we satisfy peoples needs? Expressed in mission statement
Profitability
Mission
Benefit To Society
What Is Strategy?
B
C
D
Functional areas have strategies
Weaknesses
Threats
Opportunities
Cost
Location
Supply Chain
Product Design
Layout
Inventory
Process Design
HRM
Scheduling
Functional Strategy
Analyze
Evaluate
Compare
Identify
Strategy
Appropriate Comprehensive
Coherent
Consistent
When to start?
Where to start?
Implementation Steps
Key Tasks
If done well, help provide competitive advantage. Reflect unique internal strengths. Distinctive competencies
Project team
Balanced Scorecard
Balanced scorecard measuring more than financial performance finances customers processes learning and growing Key performance indicators a set of measures that help managers evaluate performance in critical areas
Balanced Scorecard
Finance How should we look to our shareholders? Customer How should we look to our customers? Processes At which business processes must we excel? Learning and Growing How will we sustain our ability to change and improve?
Issues
Focus on getting product out the door with consistent quality. R&D & engineering are critical Focus on price, quality, delivery. Marketing is critical: differentiate product from competitors Focus on costs & new products. Maintain image, price, & quality Cost control critical
Growth
Maturity
Decline
Issues
Product design & development critical; many process changes. High production costs.
Growth
Maturity
Decline
Continuous improvement