Strategy and Operations Revision

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Introduction to Strategy and Operations Management|
Operations Strategy|
Product Design|
Process Design|
Supply Networks|
Layout and Flow|
Scientific Management and Job Design|
Introduction to Quality – A Choice Paradigm|
Operationalizing Strategy|
Review and Examination Preparation|

Operations Strategy

Strategic decisions
* Widespread in their effect, define the position of the organisation relative to its environment and move the organisation closer to its long term goals * A strategy has content and process

Operations is not the same as operational
* Operations – resources that create products and services * Operational – opposite of strategic. Day-to-day and detailed Content and Process
* Content – specific decisions and actions
* Process – method that is used to make the specific ‘content’ decisions 4 Perspectives
* Top Down – the influence of the corporate or business strategy on operations decisions * Bottom-up – the influence of operational experience on operations decisions * Market requirements – the performance objectives that reflect the market position of an operations products or service, also a perspective on operations strategy * Operations resource capabilities – the inherent ability of operations processes and resources; also a perspective on operations strategy. Products

* Tangible
* Are used after purchase
Services
* Intangible
* Used at the time of delivery

TOP DOWN PERSPECTIVE
Views strategic decisions at a number of levels
Corporate strategy – the strategic positioning of a corporation and the businesses with it Business strategy – the strategic positioning of a business in relation to its customers, markets and competitors, a subset of corporate strategy Functional strategy – the overall direction and role of a function within the business; a subset of business strategy

BOTTOM UP PRESPECTIVE
Sees overall strategy as emerging from day-to-day operational experience Emergent strategy – a strategy that is gradually shaped over time and based on experience rather than theoretical positioning

MARKET REQUIREMENTS PERSPECTIVE
-Satisfy the requirements of the market
Competitive factors – the factors such as delivery time, product or service specification, price etc. that define customers’ requirements Order-winning factors – the arrangement of resources that are devoted to the production and delivery of products and services Qualifying factors – aspects of competitiveness where the operation’s performance has to be above a particular level to be considered by the customer Less important factors – competitive factors that are neither order winning nor qualifying, performance in them does not significantly affect the competitive position of an operation Product/service life cycle – a generalized model of the behaviour of both customers and competitors during the life of a product or service; it is generally held to have four stages, introduction, growth, maturity and decline.

OPERATIONS RESOURCES PERSPECTIVE
Resource-based view (RBS) – the perspective on strategy that stresses the importance of capabilities (sometimes known as core competences) in determining sustainable competitive advantage. Intangible resources – the resources within an operation that are not immediately evident or tangible, such as relationships with suppliers and customers, process knowledge, new product and service development.

PROCESS OF OPERATIONS STRATEGY
Process – procedures which are, or can be, used to formulate those operations strategies which the org. should adopt.
IMPLEMENTATION
5 P’s of operations strategy formulation
* Purpose
* Point of entry
* Process
* Project management
* Participation
TRADE-OFFS
The extent to which improvements in one performance objective can be achieved by sacrificing performance in others. PROCESS OF OPERATIONS STRATEGY GUIDES THE TRADE OFFS B/W PERFORMANCE...
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