Using Options to Compete

Chapter
1 Using Operations To Compete

Course Introduction
1. What is Operations Management (OM) and why do we study it?

2. What is the primary goal of this textbook?

A. Operations and Supply Management Across the Organization
1. Define Process:

2. Define OM in terms of one of several functions within an organization:

3. Define Supply Chain Management

B. A Process View
1. Describe how processes work

2. What are nested processes

3. Describe Customer-Supplier Relationships in terms of
a. External customers
b. Internal customers
c. External suppliers
d. Internal suppliers
4. What are the two major processes?

a. How do they differ?

b. How are they similar?

C. The Supply Chain View
1. Define a value chain in terms of the types of processes:
a. Core processes

b. Support processes

2. Adding value with process innovation in supply chains
3. Operations strategy
4. Corporate strategy
a. Environmental scanning
b. Developing core competencies
c. Developing core processes
d. Global strategies
5. Market analysis
a. Market segmentation
b. Needs assessment

D. Competitive Priorities and Capabilities
1. Competitive priorities

2. Competitive capabilities

Dimension
Definition
Example
Low-cost
operations

Top quality Consistent quality Delivery speed On-time delivery Development speed Customization

Variety

Volume flexibility 3. Using competitive priorities
a.
b.
c.
d.

4. Order winners

5. Order qualifiers

E. Operations Strategy as a Pattern of Decisions
1. Operations strategy
2. Assess the competitive capabilities
3. Close any gap between a competitive priority and the capability

F. Trends in Operations
1. Productivity improvement
a. Productivity formula

b. Two approaches for productivity measures

Labor Productivity

Multifactor Productivity