chapter 2 operations management 2012 class notes

7/30/2019 Chapter 2 Operations Management 2012 Class Notes

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Operations Strategy

Competitive Dimensions

Order Qualifiers and Winners

Strategy Design Process

A Framework for Manufacturing Strategy Service Strategy Capacity Capabilities

Productivity Measures

OBJECTIVES


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Operations StrategyExampleStrategy Process

Customer Needs

Corporate Strategy

Operations Strategy

Decisions on Processes

and Infrastructure


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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


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Changing Competitive Dimensi

Traditional Determining Buyer Values

Quality

Savings

Discounts

Service Delivery

Flat World Determining Buyer V

Rapid Informatio

Risk-Reduction

TQM

Logistics Options

Supply Chain

Partnering

Savings

Personal Comm

Moffett, D., & Konecny, R. (2008). Death of a Salesman in a Flat World. Economics & Business Journal: Inquiries & Pe


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Dealing with Trade-offs

For example, if we reduce costs by reducing product q

inspections, we might reduce product quality.

For example, if we improve

customer service problem solving

by cross-training personnel to deal

with a wider-range of problems,they may become less efficient at

dealing with commonly occurring

problems.


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Order Qualifiers and WinnersOrder qual i f iersare the basic criteria that pefirms products to be considered as candidates

purchase by _____________

Order winnersare the criteria that differentia________ and ________ of one firm from ano


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Service Breakthroughs

1. Abrand name carcan be an ____________

2. Repair services can be__________ ExampWarranty, Roadside Assistance, Leases, et

O i S F k


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Operations Strategy Framework(p


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Steps in Developing a Manufacturing Str

1. Segment the market according to the product

2. Identify product requirements, demand pattern

profit margins of each group

3. Determine _____________and winners for ea

4. Convert ______________ into specific perform

requirements


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Service Strategy Capacity Capabilit

Process-based Capacities that transforms material or information

provide advantages on dimensions of cost and q

Systems-based

Capacities that are broad-based involving the entoperating system and provide advantages of sho

times and customize on demand Organization-based

Capacities that are difficult to replicate and providabilities to master new technologies


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What is Productivity?Productivityis a common measure on how wresources are being used. In the broadest se

can be defined as the following ratio:


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Total Measure Productivity

tyProductiviMeasureTotalInputsOutput

usedresourcesAll

ServicesandGoods

OR


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Partial Measure Productivity

Partial measures of productivity =

Labor

Output

Materials

Outputor

Capital

Outputor

En

Ouor


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Multifactor Measure Productivity

Multifactor measures of productivity =

EnergyCapitalLabor

Output

MaterialsCapitalLaborOutput

OR


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Example of Productivity Measurem

You have just determined that your service emplo

have used a total of 2400 hours of labor this weekprocess 560 insurance forms. Last week the samused only 2000 hours of labor to process 480 form

Which productivity measure should be used?

Is productivity increasing or decreasing? Last weeks productivity =

this weeks productivity is =

chapter 2 operations management 2012 class notes

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