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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 =