Production Operations Management Operations Strategy U Akinc Bus
Production Operations Management Operations Strategy U. Akinc Bus 241 1
Linking Corporate strategy with operations strategy Bus 241 2
Operations Strategy l Corporate Strategy l Product Plans l Competitive Priorities l Positioning/Operations Strategy Bus 241 3
Corporate Strategy Mission Relating the Organization’s Efforts to its Long Term Future. – What Business are we in? – Who are Our Customers? – What are our Concepts and Beliefs? – How Do We Measure Performance – – Growth? Profits? Market Share? Innovation? Bus 241 4
Corporate Strategy Environment: Scanning the Environment for Opportunities and Threats: l Competition l Market l Economic Trends l Social and Political Changes Bus 241 5
Corporate Strategy Distinct Competencies: Organization’s Unique Strengths-- those that are difficult for others to duplicate Examples: l l Competent Workforce Advantageous Location Innovative Capability Technology Bus 241 6
Operations Strategy l Corporate Strategy l Product Plans l Competitive Priorities l Positioning/ Operations Strategy Bus 241 7
Product Plans Strategic Product Line Related Choices to Leverage Company’s Distinct Competencies l The market(s) served – Low End – High End – Both l l Scope of Product Line – Wide – Narrow Availability Bus 241 8
Product Life Cycles Pressures to Introduce New Products: l l l Competition Expired Patents Technological Innovation Bus 241 9
Product Plans l A. Enter Early and Exit Late From Introduction to Decline l B. Enter Early and Exit Early From Introduction to Maturity l C. Enter Late and Exit Late From Maturity to Decline Bus 241 10
Operations Strategy l Corporate Strategy l Product Plans l Competitive Priorities l Positioning/Operations Strategy Bus 241 11
Competitive Priorities Companies Compete on the Basis of: l Quality Performance l Conformance l Service l Price l Time l Introduction l Delivery l l Flexibility Volume l Product Mix l Bus 241 12
Operations Strategy l Corporate Strategy l Product Plans l Competitive Priorities l Positioning/Operations Strategy Bus 241 13
A. Structure: Design & Creation of the Transformation System Vertical Integration q Technology q Scale of Process/Capacity q Location/Layout q Positioning Strategy q Bus 241 14
Positioning Trade off High Customization Process Focus Project Job Shop Intermediate Focus Batch Product Focus Line Continuous None Low Volume One-of-a-kind Moderate Volumes Bus 241 High Volume 15
Positioning the Process q Product Focused (Organizing the Productive resources around the Product) § High Volume § Limited variety Products/Services § Line Flows § Special Purpose Equipment § Low Labor Skills § Capital intensive/ High Automation § Efficient Bus 241 16
Positioning Strategy(cont. ) q Process Focused (Organizing the Productive Resources According to Capability) § Low Volume § Wide Variety /High Customization § Not as Efficient/ Highly Flexible § General Purpose Equipment § High Skilled and Highly Trained Workforce § Jumbled and Complex Work Flow Bus 241 17
B. Infra-Structure (The use of the Transformation System) q 1. Work-Force policies q 2. Quality Policy q 3. Operating System Bus 241 18
- Slides: 18