Chapter 1 Operations strategy – developing resources for strategic impact
Operations strategy concerning the operation function itself, and how it can contribute to strategic success. Also how any function can develop its processes and resources and establish its strategic role.
Operations can satisfy customers by five objectives:
3. Operations-related risk
5. Future innovation
Fig 1.1 Four perspectives: How to establish a connection between strategy and operational process and resources using four perspectives. (reproduce + explain)
Operations strategy must reflect the four perspectives: top down, bottom up, market requirements and operations resources.
Operations strategy is a top down reflection of what the whole business wants to do
Operations strategy is a bottom up activity where operations improvements cumulatively build strategy
Operations strategy involves translating market requirements into operations decisions
Operations strategy involves exploiting the capabilities of operations resources in chosen markets
Fig 1.8 Operations strategy is the strategic reconciliation of market requirements with operations resources. (reproduce + explain + critical comments)
Tangible and intangable Customer needs resources
Operations capabilities Operations strategy Performance Market positioning decision areas objectives
Operations processes Competitors actions
Performance objectives (market requirement perspective) = company needs to know how they want to compete, so what is their market positioning. This can be described using competitive factors (range, price, quality, etc.) The competitive factors can be sorted into the five generic performance objectives. (explain + produce)
Strategic decions areas: set of decisions needed to manage the resources of the operation.
1. Capacity strategy: How capacity and