Professional Documents
Culture Documents
Chapter 2
1-2
3
OBJECTIVES
• Operations and Supply Strategy
• Competitive Dimensions
• Order Qualifiers and Winners
• Strategy Design Process
• A Framework for Manufacturing Strategy
• Service Strategy Capacity Capabilities
• Productivity Measures
1-3
4
1-4
5
Competitive Dimensions
• 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
1-5
6
For
For example,
example, ififwe
wereduce
reducecosts
costs by
byreducing
reducingproduct
product
quality
qualityinspections,
inspections,we
wemight
mightreduce
reduceproduct
productquality.
quality.
For
Forexample,
example, ifif we
we
improve
improve customer
customer Cost
service
serviceproblem
problem solving
solving
by
bycross-training
cross-training Flexibility Delivery
personnel
personneltotodeal
dealwith
with aa
wider-range
wider-rangeofof Quality
problems,
problems, they
they may
may
become
becomeless
lessefficient
efficient at
at
dealing
dealingwith
withcommonly
commonly
occurring
occurringproblems.
problems.
1-6
7
1-7
8
1-8
9
What is Productivity?
Defined
1-9
10
or
= Goods and services produced
All resources used
1-10
11
1-11
12
Output .
Labor + Capital + Energy
or
Output .
Labor + Capital + Materials
1-12
13
1-13
14
End of Chapter 2
1-14