Bus 2411 Production Operations Management Operations Strategy U. Akinc Operations Strategy U. Akinc

Bus 2412 Linking Corporate strategy with operations strategy

Bus 2413 Operations Strategy l Corporate Strategy l Product Plans l Competitive Priorities l Positioning/Operations Strategy l Corporate Strategy l Product Plans l Competitive Priorities l Positioning/Operations Strategy

Bus 2414 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? 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 2415 Corporate Strategy Environment: Scanning the Environment for Opportunities and Threats: l Competition l Market l Economic Trends l Social and Political Changes Environment: Scanning the Environment for Opportunities and Threats: l Competition l Market l Economic Trends l Social and Political Changes

Bus 2416 Corporate Strategy Distinct Competencies: Organization’s Unique Strengths-- those that are difficult for others to duplicate Examples: l Competent Workforce l Advantageous Location l Innovative Capability l Technology Distinct Competencies: Organization’s Unique Strengths-- those that are difficult for others to duplicate Examples: l Competent Workforce l Advantageous Location l Innovative Capability l Technology

Bus 2417 Operations Strategy l Corporate Strategy l Product Plans l Competitive Priorities l Positioning/ Operations Strategy l Corporate Strategy l Product Plans l Competitive Priorities l Positioning/ Operations Strategy

Bus 2418 Product Plans Strategic Product Line Related Choices to Leverage Company’s Distinct Competencies l The market(s) served – Low End – High End – Both l Scope of Product Line –Wide –Narrow l Availability Strategic Product Line Related Choices to Leverage Company’s Distinct Competencies l The market(s) served – Low End – High End – Both l Scope of Product Line –Wide –Narrow l Availability

Bus 2419 Product Life Cycles Pressures to Introduce New Products: l Competition l Expired Patents l Technological Innovation Pressures to Introduce New Products: l Competition l Expired Patents l Technological Innovation

Bus 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 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 Operations Strategy l Corporate Strategy l Product Plans l Competitive Priorities l Positioning/Operations Strategy l Corporate Strategy l Product Plans l Competitive Priorities l Positioning/Operations Strategy

Bus Competitive Priorities Companies Compete on the Basis of: l Quality l Performance l Conformance l Service l Price l Time l Introduction l Delivery l Flexibility l Volume l Product Mix Companies Compete on the Basis of: l Quality l Performance l Conformance l Service l Price l Time l Introduction l Delivery l Flexibility l Volume l Product Mix

Bus Operations Strategy l Corporate Strategy l Product Plans l Competitive Priorities l Positioning/Operations Strategy l Corporate Strategy l Product Plans l Competitive Priorities l Positioning/Operations Strategy

Bus  Vertical Integration  Technology  Scale of Process/Capacity  Location/Layout  Positioning Strategy  Vertical Integration  Technology  Scale of Process/Capacity  Location/Layout  Positioning Strategy A.Structure: Design & Creation of the Transformation System

Bus Customization High Low Low Volume One-of-a-kind Low Volume One-of-a-kind Moderate Volumes Moderate Volumes High Volume High Volume None Process Focus Intermediate Focus Product Focus Project Job Shop Batch Line Continuous Positioning Trade off

Bus Positioning the Process  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 Positioning Strategy(cont.)  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  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 B. Infra-Structure ( The use of the Transformation System)  1. Work-Force policies  2. Quality Policy  3. Operating System B. Infra-Structure ( The use of the Transformation System)  1. Work-Force policies  2. Quality Policy  3. Operating System