Operations Strategy in a Global Environment
1. Global seems the better label for Boeing since authority and responsibility reside in the U.S.—the home country. 2. Six reasons to internationalize: Reduce costs, improve supply chain, provide better goods and services, attract new markets, learn to improve operations, attract and retain global talent. 3. No. Sweetness at Coca-Cola is adjusted for the tastes of individual countries. 4. A mission is an organization’s purpose—what good or service it will contribute to society. 5. Strategy is an organization’s action plan—how it is going to achieve its purpose. 6. A mission speciﬁes where the organization is going and a Strategy speciﬁes how it is going to get there. 7. The answer to this question will depend on the establishment studied, but should probably include some of the following considerations: The mission: diagnose automobile problems and make the necessary repair at a fair price for the local customer. Points to consider, or options, within the 10 decision areas are: Decision: Product Option: Repair work of American and/or foreign vehicles; specialized (tune-ups, lubrication, wheel alignment, etc.) versus general repair; frame and body repair versus engine and power train repair; repair and maintenance only, versus repair, maintenance, and sales of fuel; professional stafﬁng versus rental of tools and space for do-it-yourself repair work Appropriate level of quality; warranty; method of measuring and maintaining quality (customer complaints, inspection by supervising mechanic, etc.) Use of general versus special purpose diagnostic and repair equipment (in particular, the degree to which computer controlled diagnostic equipment is employed) In-town, shopping mall, highway Single bay/multibay; general-purpose bay versus special-purpose bay (lubrication/tire repairs and installation/wheel alignment/ engine and power train repair, etc.)
Supply Chain Scheduling
Employment of certiﬁed versus noncertiﬁed repair persons; employment of specialists versus general mechanics Choice of supplier(s) for both general and original manufacturer parts and supplies Hours of operation (8:00 A.M.–5:00 P.M.; 24-hour towing; weekends/holidays), repairs versus motor vehicle safety inspections, etc.; service by appointment versus walk-in (or drive-up) service Quantity and variety of repair parts (fan belts, ﬁlters, mufﬂers, headlights, etc.) to stock; whether to stock generic or original manufacturer parts
8. Library or Internet assignment: Student is to identify a mission and strategy for a ﬁrm. Business Week, Fortune, Wall Street Journal, and Forbes all have appropriate articles. 9. OM strategy change during a product’s life cycle: During the introduction stage, issues such as product design and development are critical, then during the growth stage the emphasis changes to product and process reliability; from there we move to concern for increasing the stability of the manufacturing process and cost cutting; and ﬁnally, in the decline stage pruning the line to eliminate items not returning good margin becomes important. Figure 2.5 provides a more expansive list. 10. The text focuses on three conceptual strategies—cost leadership, differentiation and response. Cost leadership by Wal-Mart—via low overhead, vicious cost reduction in the supply chain; Differentiation, certainly any premium product—all ﬁne dining restaurants, up-scale autos—Lexus, etc.; Response, your local pizza delivery service, FedEx, etc. 11. The PIMs research suggest that high ROI results from (1) high product quality, (2) high capacity utilization, (3) high operating effectiveness, (4) low investment intensity, and (5) low direct cost per unit. 12. An operations strategy statement for Southwest Airlines would include a focus on efﬁcient low cost service with high capital utilization (high aircraft and gate utilization), ﬂexible nonunion...