WHAT IS OPERATIONS STRATEGY Operations strategy is the

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WHAT IS OPERATIONS STRATEGY? Operations strategy is the pattern of decisions and the course

WHAT IS OPERATIONS STRATEGY? Operations strategy is the pattern of decisions and the course of action taken either by the individual functions within a business (micro operations), or the whole organization (macro operation), in order to create goods and services which will satisfy the organization’s business strategy.

IMPORTANCE OF THE FIVE PERFORMANCE OBJECTIVES.

IMPORTANCE OF THE FIVE PERFORMANCE OBJECTIVES.

Quality Speed Dependability Flexibility Cost

Quality Speed Dependability Flexibility Cost

QUALITY Quality means doing things right; striving to satisfy customers by providing goods and

QUALITY Quality means doing things right; striving to satisfy customers by providing goods and services which are fit for their purpose.

SPEED Doing things quickly. This involves delivering goods and services to customers as fast

SPEED Doing things quickly. This involves delivering goods and services to customers as fast as they want them.

DEPENDABILITY Dependability means doing things on time. This means keeping to the delivery schedule

DEPENDABILITY Dependability means doing things on time. This means keeping to the delivery schedule that has been promised to the customer.

FLEXIBILITY Flexibility means being able to change what you do to respond to changes

FLEXIBILITY Flexibility means being able to change what you do to respond to changes in customer requirements in terms of the product’s and service’s design, volume, mix and delivery times.

COST Cost means doing things cheaply.

COST Cost means doing things cheaply.

DECISION AREAS IN OPERATIONS STRATEGY

DECISION AREAS IN OPERATIONS STRATEGY

In order to maintain and improve the performance of the operations function, the operations

In order to maintain and improve the performance of the operations function, the operations strategy needs to set the direction for each of the operation’s main decision area. a. Structural Decisions b. Infrastructure Decisions

STRUCTURAL DECISIONS The structural decisions determine the operation environment

STRUCTURAL DECISIONS The structural decisions determine the operation environment

INFRASTRUCTURE DECISION are those which are concerned with day-to-day planning, control and improvement activities.

INFRASTRUCTURE DECISION are those which are concerned with day-to-day planning, control and improvement activities.

STRUCTURAL DECISION AREAS Facilities strategy Technology strategy Integration strategy Process strategy Organization strategy

STRUCTURAL DECISION AREAS Facilities strategy Technology strategy Integration strategy Process strategy Organization strategy

FACILITIES STRATEGY This refers to decisions as to the size, number of sites, and

FACILITIES STRATEGY This refers to decisions as to the size, number of sites, and location of the operation, what activities should be allocated to the operation, and where the operation’s facilities should be located.

TECHNOLOGY STRATEGY This involves decisions on the range of equipment, type of technology and

TECHNOLOGY STRATEGY This involves decisions on the range of equipment, type of technology and systems that should be used by the operation in order to make the required contribution to meet its quality, speed, cost, delivery, and flexibility requirements.

INTEGRATION STRATEGY This relates to decisions as to how much of the operation’s activities

INTEGRATION STRATEGY This relates to decisions as to how much of the operation’s activities should be undertaken by its own staff and how much should be done by acquiring its external suppliers or customers.

PROCESS STRATEGY This involves decisions on the design of the production or service delivery

PROCESS STRATEGY This involves decisions on the design of the production or service delivery system and the organization of the operation’s resources for updating and developing new products and services.

ORGANIZATION STRATEGY This involves decision on the structure of the operation, the role and

ORGANIZATION STRATEGY This involves decision on the structure of the operation, the role and responsibilities of people in its management and what type of control and rewards systems should be used.

INFRASTRUCTURE DECISION AREAS Capacity Strategy Supplier Strategy Inventory Strategy Human Resource Strategy Planning and

INFRASTRUCTURE DECISION AREAS Capacity Strategy Supplier Strategy Inventory Strategy Human Resource Strategy Planning and Control Strategy Performance Measurement and Improvement Strategy

CAPACITY STRATEGY This relates to decisions as to how the capacity of the operation

CAPACITY STRATEGY This relates to decisions as to how the capacity of the operation should be adjusted in response to changes in the forecast or in the market demand for its products and services

SUPPLIER STRATEGY This involves decisions on how suppliers for the operation are selected and

SUPPLIER STRATEGY This involves decisions on how suppliers for the operation are selected and how relationships with them are developed. It also is concerned with how the operation monitors and improves suppliers’ performance.

INVENTORY STRATEGY This involves decision on how much inventory the operation should hold and

INVENTORY STRATEGY This involves decision on how much inventory the operation should hold and where it is to be located. What should be the sourcing policies and the material control systems used?

HUMAN RESOURCE STRATEGY This relates to decisions as to how the staff of the

HUMAN RESOURCE STRATEGY This relates to decisions as to how the staff of the operation are selected, organized, and developed, and what role and mix of skills they should provide in order to contribute to the management of the operation.

PLANNING AND CONTROL STRATEGY This relates to decisions as to how the operation should

PLANNING AND CONTROL STRATEGY This relates to decisions as to how the operation should plan its future activities and decide, allocate and control its resources in order to meet it’s demand expectation.

PERFORMANCE MEASUREMENT AND IMPROVEMENT STRATEGY This relates to decisions as to how the operation’s

PERFORMANCE MEASUREMENT AND IMPROVEMENT STRATEGY This relates to decisions as to how the operation’s performance should be measured and improved, who should be involved in the improvement process and how the process should be managed. It also deals with the way the operation organizes its resources in order to present failure and cope with disruption if failure does occur.

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