1. Strategy
Chapter 2

2. Objectives OM Strategy Competitive Dimensions
Order Qualifiers and Winners
Strategy Design Process
Productivity Measures

3. What is Operations and Supply Strategy?
2-3
What is Operations and Supply Strategy?
Operations and supply strategy is concerned with setting broad policies and plan for using the resources of a firm to best support its long-term competitive strategy.

4. Corporate Strategy and Key Operations Management Decisions
Operations strategy
Decisions
Designing and Improving Processes
Planning and Managing Projects
Designing Value Chains
Operating Value Chains
Market analysis
Competitive priorities
New Service/
Product Design
Capabilities
Performance
Gap? No
Yes
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

5. Competitive Dimensions
2-5
Competitive Dimensions
Order qualifiers are the basic criteria that permit the firms products to be considered as candidates for purchase by customers
Order winners are the criteria that differentiates the products and services of one firm from another 6

6. Competitive Priorities
2-6
Competitive Priorities
Cost or Price
Make the Product or Deliver the Service Cheap
Quality
Make a Great Product or Deliver a Great Service
Delivery Speed
Make the Product or Deliver the Service Quickly
Delivery Reliability
Deliver It When Promised
Coping with Changes in Demand
Change Its Volume
Flexibility and New Product Introduction Speed
Change It
Other Product-Specific Criteria
Support It 4

7. Productivity - Defined
2-7
Productivity - Defined
Productivity is a common measure on how well resources are being used. In the broadest sense, it can be defined as the following ratio: Outputs Inputs

8. Total Measure Productivity
2-8
Total Measure Productivity
Total Measure Productivity = Outputs Inputs or
= Goods and services produced
All resources used 17

9. Partial Measure Productivity
2-9
Partial Measure Productivity
Partial measures of productivity =
Output or Output or Output or Output
Labor Capital Materials Energy 17

10. Multifactor Measure Productivity
2-10
Multifactor Measure Productivity
Multifactor measures of productivity =
Output
Labor Capital Energy or
Labor Capital Materials 17

11. Any Questions?