Chapter 2 Operations Strategy and Competitiveness. Operations Strategy Competitive Dimensions Order Qualifiers and Winners A Framework for Manufacturing Strategy Service Strategy Capacity Capabilities Productivity Measures. Operations Strategy. Strategy Process. Example. Customer Needs.
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Increase Org. Size
Increase Production Capacity
Decisions on Processes
Build New Factory
QualityDealing with Trade-offs
For example, if we reduce costs by reducing product quality inspections, we might reduce product quality.
Firms must decide how they are going to compete on these dimensions.
Who determines the winning combination?
Current thinking - work to improve all four dimensions simultaneously
In the Kaplan and Norton’s Generic Strategy Map, under the Financial Perspective, the Productivity Strategy is generally made up from two components:
In the Kaplan and Norton’s Generic Strategy Map, under the Financial Perspective, the Revenue Growth Strategy is generally made up from two components:
In the Kaplan and Norton’s Generic Strategy Map, under the Customer Perspective, there are three ways suggested as means of differentiating a company from others in a marketplace:
In the Kaplan and Norton’s Generic Strategy Map, under the Learning and Growth Perspective, there are three principle categories of intangible assets needed for learning:
New : Old
product : product
dimensions & reqs.
Speed, Flexibility, and Price
Operations & Supplier capabilities
Human resource management
Information managementOperations Strategy Framework
1. Segment the market according to the product group.
2. Identify product requirements, demand patterns, and profit margins of each group.
3. Determine order qualifiers and winners for each group.
4. Convert order winners into specific performance requirements.
= Goods and services produced
All resources used
or etc.Partial Measure Productivity
or etc.Multifactor Measure Productivity
A fast-food restaurant serves hamburgers, cheeseburgers, and chicken sandwiches. The restaurant counts cheeseburgers as equivalent to 1.2 hamburgers and chicken sandwiches as equivalent to .75 hamburgers. Five employees work 40 hours/week at the restaurant. If the restaurant sold 500 cheeseburgers, 700 hamburgers, and 1000 chicken sandwiches in one 40 hour week, what is its labor productivity?