1. Strategy and Tactics Distinctive Competencies
The special attributes or abilities that give an
organization a competitive edge.
Price
Quality
Time
Flexibility
Service
Location

2. Examples of Distinctive Competencies
Bill Collection points, ATM
Convenience
Location
Banks, Airlines, Insurance Companies
Superior customer service
Service
Burger stands.
Supermarkets
Variety
Volume
Flexibility
Express Mail, Courier Services, One-hour photo
Rapid delivery On-time delivery
Time
Plasma/LCD TV
SUV /Sports Utility Vehicle
Handy cams, Mobile Phones
High-performance design or high quality Consistent quality
Quality
Pakistan Postal Service
Guest Houses, Motels
Low Cost
Price

3. Relationship between Operations and Organizational Strategy
Organizational strategy is
an over all big picture for the whole organization.
Longer in time horizon
Less detailed and broader in scope.
Operational Strategy is
Narrower in scope and in more detail
Should be in line with the Organization strategy
Prepared by middle management.

4. Relationship between Operations and Organizational Strategy
Operational Strategy:
Should not harm the objectives of the organization.
Should avoid SUBOPTIMIZATION, meaning department and divisions goals should not harm the overall Organizational strategy.

5. Increase Production Capacity Decisions on Processes
Operations Strategy
Strategy Process
Example
Customer Needs
More Product
Corporate Strategy
Increase Organization Size
Operations Strategy
Increase Production Capacity
Decisions on Processes
and Infrastructure
Build New Factory 3

6. Strategy Design Process
Strategy Map
Desired Results
Financial Perspective
Improve Shareholder Value
Customer Perspective
Customer Value Proposition
Internal Perspective
Build-Increase-Achieve
Learning and Growth Perspective
A Motivated and Prepared Workforce 3

7. Strategy Formulation Distinctive competencies Environmental scanning
SWOT
Order qualifiers
Order winners
Strategy Design Process
A Framework for Manufacturing Strategy
Service Strategy Capacity Capabilities
Productivity Measures

8. Steps in Developing a Manufacturing/Service Strategy
Segment the market according to the product/Service group.
Identify product/Service requirements, demands and profit margins of each group.
Determine order qualifiers and winners for each group.
Convert order winners into specific performance requirements. 9

9. Key External Factors for Environment Scanning
Economic conditions
Political conditions
Legal environment
Technology
Competition
Markets

10. Key Internal Factors for Environment Scanning
Human Resources ( Trained, skilled and qualified employees)
Facilities and equipment ( a good source for motivation, and obtaining competitive advantage over your competitors)
Customers ( Repeat customers, and customer relationship Management)
Products and services ( How does the organization values itself whether it provides products or services that add value)
Technology ( Legacy Systems or Technology that is competitive and has the potential to gain competitive advantage)
Suppliers ( Companies have taken care of the supplier issue by making use of effective Supply Chain Management Strategies or use vertical or horizontal integration techniques)

11. SERVICE STRATEGY Identify Process /Systems /organization based services. Concept, operating strategy and delivery. Cost Leadership Differentiation
McGraw-Hill/Irwin
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved.

12. Quality and Time Strategies
Quality-based strategies
Focuses on maintaining or improving the quality of an organization’s products or services
Quality at the source
Time-based strategies
Focuses on reduction of time needed to accomplish tasks

13. Time Based Strategies There are 6 time based strategies namely:
Planning Time
Products /service design time
Processing Time
Changeover Time
Delivery Time
Response Time for Complaints