The Fashion Operation Business Unit Tutor Dr Neil Towers Fashion Operations Management

Learning Objectives To understand the contribution an effective fashion operation can service markets and supply chains To understand the strategic role of a fashion operation

What is the role of the operations function? Operations as implementer Ops Strategy Operations implements strategy Operations supports strategy Operations drives strategy Strategy Ops Strategy Ops Operations as supporter Operations as driver

The 3 key attributes of operations Operations Contribution Implementing Supporting Driving be Dependable Operationalise strategy explain Practicalities be Appropriate Understand strategy Contribute to decisions be Innovative provide Foundation of strategy Develop long-term Capabilities The Strategic Role of the Operations Function

The strategic role of operations can be defined by its aspirations (Hayes and Wheelwright) Give an Operations Advantage Externally supportive Internally supportive Externally neutral Internally neutral The ability to Implement Link Strategy With Operations Adopt best Practice Correct the Worst Problems Increasing contribution of operations STAGE 1STAGE 2STAGE 3STAGE 4 The ability to Drive strategy Stop holding the organization back Be as good as competitors Be clearly the best in the industry Redefine the industry’s expectations The ability to support Strategy

How can the contributionof the operations function be assessed? Externally Objective is to minimize the negative impact of ‘operations’. Internally Neutral Supportive Stage 1 Stage 2Stage 4 Stage 3 Objective is for ‘operations’ to help the business maintain parity with its competitors. Objective is for ‘operations’ to provide credible support for the business strategy. Objective is for ‘operations’ to provide a source of competitive advantage.

What do the terms quality, speed, dependability, flexibility and cost mean in the context of operations? Being able to do things right (quality advantage)? Enables you to do things on time (dependability advantage)? Which enables you to do things quickly (speed advantage)? Which enables you to do things cheaply (cost advantage)? Which enables you to change what you do (flexibility advantage)?

An operation contributes to business strategy by achieving five "Performance Objectives" CHANGING what you do a FLEXIBILITY advantage Gives Doing things CHEAPLY a COST advantage Gives Doing things ON TIME a DEPENDABILITY advantage Gives Doing things FAST a SPEED advantage Gives Doing things RIGHT a QUALITY advantage Gives

The benefits of excelling Minimum cost, maximum value Reliable operation Ability to change Error-free processes Fast throughput Cost Speed Quality Flexibility Depend- ability Minimum price, highest value Quick delivery Dependable delivery Error-free products and services Frequent new products, maximum choice

Operations Activities as Feedback Loops Design activities set the basic configuration Planning & control activities guide short/medium term changes Planning & Control Design Improvement Improvement activities guide longer term changes

Broad strategic objectives for an operation applied to stakeholder groups Society l Increase employment l Enhance community well-being l Produce sustainable products l Ensure clean environment Suppliers l Continue business l Develop supplier capability l Provide transparent information Shareholders l Economic value from investment l Ethical value from investment Employees l Continues employment l Fair pay l Good working conditions l Personal development Customers l Appropriate product or service specification l Consistent quality l Fast delivery l Dependable delivery l Acceptable price

Howoperations strategies are put together Identify what is wanted in the market place. Establish how well the operation performs versus its competitors. Identify what the operation needs to do better. Identify how the operation could do these things better. Implement the strategy.