Operations strategy overview
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Operations Strategy Overview. Key Points WORKING DEFINITION OF OPERATIONS STRATEGY COMPETITIVE PRIORITIES [OR, MORE APTLY, GENERIC OPERATIONS CAPABILITIES] STRATEGIC DECISION AREAS -- CIRCUMSCRIBES THE AREAS OF CONCERN.

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Operations Strategy Overview

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Operations strategy overview

Operations Strategy Overview

Key Points

  • WORKING DEFINITION OF OPERATIONS STRATEGY

  • COMPETITIVE PRIORITIES [OR, MORE APTLY, GENERIC OPERATIONS CAPABILITIES]

  • STRATEGIC DECISION AREAS -- CIRCUMSCRIBES THE AREAS OF CONCERN


3 keys for understanding operations strategy toward a working definition of operations strategy

3 Keys For Understanding Operations Strategy[TOWARD A WORKING DEFINITION OF OPERATIONS STRATEGY]

  • Primary function of operations strategy is to guide business in forming a set of operations capabilities that enables the firm to pursue its chosen competitive strategy over the long-term

  • Pattern of Decisions

  • Consistency of Decisions ---> Effective strategy

    .


Capabilities based competition

Capabilities-Based Competition

  • Strategic capabilities can result from investments in any function. Examples include outstanding marketing channels, prowess in logistics, or information processing capabilities, as well as through operations.

  • Capabilities are likely to produce a SUSTAINABLE advantage since capabilities are hard for competitors to duplicate.

  • Capabilities are built through a stream of investments over time. The capabilities themselves can be thought of as asset which can be deployed as needed.

  • Advantage built on product features, advertising, etc. is not necessarily sustainable since competitors can quickly imitate.

  • To provide advantage, capabilities must be desirable, rare and difficult to duplicate.


A process model of operations strategy

A Process Model of Operations Strategy


A content model of operations strategy

A Content Model Of Operations Strategy


Competitive priorities generic operations capabilities

Competitive Priorities[GENERIC OPERATIONS CAPABILITIES]

  • Cost

  • Quality

  • Delivery performance

  • Flexibility

  • Innovativeness


Operations strategy decision categories

Operations Strategy Decision Categories

STRUCTURAL - "BRICKS AND MORTAR“ DECISIONS

  • Capacity -- amount, timing, type

  • Facilities -- size, location, specialization

  • Technology -- equipment, automation, linkages

  • Supply Chain Integration -- direction, extent, balance


Infrastructural policies systems

INFRASTRUCTURAL - POLICIES & SYSTEMs

  • Workforce policies and practices -- skill level, wage policies, training, and employment security

  • New product development process

  • Quality systems

  • Production Planning/Materials Control --sourcing policies, centralization, decision rules

  • Organization


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