Operations Strategy Chapter 2 To Accompany Krajewski Ritzman

Operations Strategy Chapter 2 To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

Competitive Priorities Corporate strategy • environmental scanning • core competencies • core processes • global strategies Market analysis • segmentation • needs analysis Competitive priorities • cost • quality • time • flexibility Figure 2. 1 To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

Competitive Priorities Corporate strategy • environmental scanning • core competencies • core processes • global strategies Cost Quality Time Flexibility Market analysis 1. 2. 3. 4. 5. 6. 7. 8. 9. • segmentation • needs analysis Low-cost operations Top quality Competitive priorities Consistent quality • cost • quality Delivery speed • time • flexibility On-time delivery Development speed Customization Variety Volume flexibility Figure 2. 1 To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

Competitive Priorities Corporate strategy • environmental scanning • core competencies • core processes • global strategies Market analysis • segmentation • needs analysis Competitive priorities • cost • quality • time • flexibility Capabilities New Service/ Product Design • current • needed • planned • design • analysis • development • full launch Functional area strategies • finance • marketing • operations • others Figure 2. 1 To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

New Service or Product Development Process Design • Development strategy • Idea generation and screening • Service package or product architecture formulation • Production feasibility Figure 2. 2 • Service or product not profitable Analysis • Detailed review of market potential and production costs • Need to rethink the new offering or production processes Development • Detailed specifications • Process design • Marketing program design • Personnel training • Testing and pilot runs • Post-launch review Full Launch • Market promotions • Sales personnel briefed • Distribution processes activated • Old services or products withdrawn • Production of new offering and ramp-up To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

Corporate Strategy and Key Operations Management Decisions Corporate strategy Market analysis Competitive priorities New Service/ Product Design No Yes Performance Gap? Operations strategy Decisions • • Designing and Improving Processes Planning and Managing Projects Designing Value Chains Operating Value Chains Capabilities Figure 2. 3 To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

Lower Florida Keys Health System To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

Lower Florida Keys Health System First Floor To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

Lower Florida Keys Health System Second Floor Third Floor To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

Chaparral Steel To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.