Operations & the Product Life Cycle
Maturity Growth Development & launch Develop or decline
Operations Management in Tourism GHT 3652
Lecturer: E. Kasuto Room: Y042 Tel: 206-3267
Product Life Cycle Implications for Operations Strategy?
Roles of Operations Manager
What do Operations Managers do?
Strategic change involves re-structuring, re-engineering
Customer service criteria
Quality Dependability Range Maintainer - emphasises Schedule Dependability Quality Price/cost
Strategic change involves enhancing the operation’s infrastructure
Marketeer - emphasises
Innovator Quality Product/service performance Speed New prod. devel Reorganiser Quality Product/service performance Flexibility Speed
• With your partner, choose "an operation" and list the main activities the operations manager must manage. role demands planning decisions coordination systems
Traditional Enhanced Operations process design
The Operations Environment
Competitive External Environment
The Economy, the Society
Staff & skills
Design & Engineering
Purchasing & Logistics Information Systems
Finance & Accounting
Ops Mgt Decision Framework
Product/operations strategy 4. Process choice choice trade-offs positioning capacity: size, timing, location role of inventory in process 5. Infrastructure function support ops planning & info systems QA & control systems engineering clerical procedures wage systems work & organisational structures
Corporate objectives Growth Survival profit ROI other £ measures
Winning orders Marketing in the strategy marketplace? Product/service price markets & quality segments delivery speed Range + reliability Mix responsiveness Volumes to demand Standardisation design features vs. customisation & leadership Level of product/service innovation range Leader vs. technical follower support
Contribution to • competitiveness and market leadership Operations functions • needs clear, consistent, achievable objectives & implementation • A move from safe, conservative ops to market/fashion leader? requires different + better • responsiveness,quality, information, control, skills • production processes, supplier relationships • uses of technology and design applications Who & what drives ops strategy & technological innovation? Accountants, marketing, sales, partners, innovators and inventions, competitors, customers?
Source: Hill T, Manufacturing Strategy, Macmillan, 1993
Operations Strategy Model
Business strategy Operations Strategy Mission Distinctive Competence Objectives cost, quality, flexibility, delivery
Evaluation & Control
Internal & external analysis
Functional strategies: marketing, finance, engineering, staff & information systems
Strategy Implementation • Disciplined, iterative process of driving towards vision, by finding or making and maintaining a defensible space or trajectory in a given business environment.
Policies: process, quality systems, capacity,& inventory
What is Strategy?
• • • • • • • • Plan Process Position Pattern Perspective Procedure Play Ploy • Strategic Management • Strategic Position • Strategic Navigation • Strategic Tactics
• Value proposition • Vision • Position or direction
– Structure or resource base
• Revenue & business model • Timeline or guidelines • Fit
• Specific, concrete offer of benefits
– Price, quality, convenience, choice, cost-savings, reliability, etc
• Stable core
– Mission: Central audience + core...
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