1 / 9

Chapter 2

Chapter 2. Operations Strategy and Competitiveness. What Is Operations Strategy? Operations Competitive Dimensions Strategic Fit: Fitting Operational Activities to Strategy Productivity Measurement How Does Wall Street Evaluate Operations Performance?. OBJECTIVES.

Download Presentation

Chapter 2

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Chapter 2 Operations Strategy and Competitiveness

  2. What Is Operations Strategy? • Operations Competitive Dimensions • Strategic Fit: Fitting Operational Activities to Strategy • Productivity Measurement • How Does Wall Street Evaluate Operations Performance? OBJECTIVES

  3. What Is Operations Strategy? • The essence of strategy is in business activities (i.e., choosing to perform activities differently than rivals). • Most managers describe strategic positioning in terms of their customers. For example, “Southwest Airlines serves price- and convenience-sensitive travelers.” • Operations strategy is concerned with setting broad policies and plans for using the resources of a firm to best support its long-term competitive strategy.

  4. Operations 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.

  5. Cost Flexibility Delivery Quality The Notion of Trade-offs For example, if we reduce costs by reducing product quality 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.

  6. Order Winners and Qualifiers: the Marketing and Operations Link • Order winners are the criteria that differentiates the products and services of one firm from another. • Order qualifiers are the basic criteria that permit a firm’s products to be considered as candidates for purchase by customers.

  7. Strategic Fit: Fitting Operational Activities to Strategy

  8. Productivity Measurement • Productivity is a common measure on how well resources are being used. It is also useful for monitoring improvement. In the broadest sense, it can be defined as the ratio: Outputs / Inputs. • Partial measure: for example • Multifactor: for example • Total Measure: for example • See exhibit2-7.xls for examples.

  9. How Does Wall Street Evaluate Operations Performance?

More Related