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Beni Asllani University of Tennessee at Chattanooga Operations Strategy Operations Management - 5 th  Edition Chapter 2 Roberta Russell & Bernard W. Taylor, III
Lecture Outline ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Four Steps for Strategy Formulation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Competitive Priorities ,[object Object],[object Object],[object Object],[object Object]
Competitive Priorities: Cost ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Competitive Priorities: Quality ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Competitive Priorities: Flexibility ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Competitive Priorities: Speed ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Operations’ Role in Corporate Strategy ,[object Object],[object Object]
Operations Strategy at Wal-Mart
Strategy and the Internet ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Strategy and the Internet (cont.) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Strategy and the Internet (cont.) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Strategic Decisions in Operations ,[object Object],Services Process and Technology Capacity Human Resources Quality Facilities Sourcing Operating Systems
Operations Strategy:  Products and Services ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Production Strategy: Processes and technology   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Product-Process Matrix Source:  Adapted from Robert Hayes and Steven Wheelwright,  Restoring the Competitive Edge: Competing Through Manufacturing  (New York: John Wiley & Sons, 1984), p. 209
Project Construction of the aircraft carrier USS Nimitz was a huge project that took almost 10 years to complete. Batch Production At Martin Guitars bindings on the guitar frame are installed by hand and are wrapped with a cloth webbing until glue is dried. Mass Production   Here in a clean room a worker performs quality checks on a computer assembly line. Continuous Production A paper manufacturer produces a continuous sheet paper from wood pulp slurry, which is mixed, pressed, dried, and wound onto reels. More Standardized – Higher Volume
Service Strategy: Processes and Technology   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Service-Process Matrix Source:  Adapted from Roger Schmenner, “How Can Service Businesses Survive and Prosper?”  Sloan Management Review  27(3):29
Professional Service A doctor provides personal service to each patient based on extensive training in medicine. Service Shop Although a lecture may be prepared in advance, its delivery is affected by students in each class. Mass Service A retail store provides a standard array of products from which customers may choose. Service Factory Electricity is a commodity available continuously to customers. Less Customized-Less Labor Intensive
Operations Strategy: Capacity and Facility ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Operations Strategy: Human Resources ,[object Object],[object Object],[object Object],[object Object],[object Object]
Operations Strategy: Human Resources (cont.) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Operations Strategy: Quality ,[object Object],[object Object],[object Object],[object Object]
Operations Strategy: Quality (cont.) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Operations Strategy: Sourcing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Operations Strategy: Sourcing (cont.) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Operations Strategy: Operating Systems ,[object Object],[object Object],[object Object],[object Object]
Strategic Planning Mission and Vision Corporate Strategy Operations Strategy Marketing Strategy Financial Strategy Voice of the Business Voice of the Customer
Policy Deployment Translating corporate strategy into measurable objectives
Key Performance Indicators ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Balanced Scorecard Radar Chart Dashboard
Issues and Trends in Operations ,[object Object],[object Object],[object Object],[object Object],[object Object]
Issues and Trends in Operations (cont.) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Changing Corporation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Characteristic 20th-Century Corporation 21st-Century Corporation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source:  Reprinted from John Byrne, “Management by Web,”  Business Week  (August 28, 2000), p. 87 by special permission, copyright 2000 by The McGraw-Hill Companies, Inc.
Changing Corporation (cont.) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Characteristic 20th-Century Corporation 21st-Century Corporation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source:  Reprinted from John Byrne, “Management by Web,”  Business Week  (August 28, 2000), p. 87 by special permission, copyright 2000 by The McGraw-Hill Companies, Inc.
Changing Corporation (cont.) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Characteristic 20th-Century Corporation 21st-Century Corporation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source:  Reprinted from John Byrne, “Management by Web,”  Business Week  (August 28, 2000), p. 87 by special permission, copyright 2000 by The McGraw-Hill Companies, Inc.
Copyright 2006 John Wiley & Sons, Inc. All rights reserved.  Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful.  Request for further information should be addressed to the Permission Department, John Wiley & Sons, Inc.  The purchaser may make back-up copies for his/her own use only and not for distribution or resale.  The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information herein.

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Chapter 02

  • 1. Beni Asllani University of Tennessee at Chattanooga Operations Strategy Operations Management - 5 th Edition Chapter 2 Roberta Russell & Bernard W. Taylor, III
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17. Product-Process Matrix Source: Adapted from Robert Hayes and Steven Wheelwright, Restoring the Competitive Edge: Competing Through Manufacturing (New York: John Wiley & Sons, 1984), p. 209
  • 18. Project Construction of the aircraft carrier USS Nimitz was a huge project that took almost 10 years to complete. Batch Production At Martin Guitars bindings on the guitar frame are installed by hand and are wrapped with a cloth webbing until glue is dried. Mass Production Here in a clean room a worker performs quality checks on a computer assembly line. Continuous Production A paper manufacturer produces a continuous sheet paper from wood pulp slurry, which is mixed, pressed, dried, and wound onto reels. More Standardized – Higher Volume
  • 19.
  • 20. Service-Process Matrix Source: Adapted from Roger Schmenner, “How Can Service Businesses Survive and Prosper?” Sloan Management Review 27(3):29
  • 21. Professional Service A doctor provides personal service to each patient based on extensive training in medicine. Service Shop Although a lecture may be prepared in advance, its delivery is affected by students in each class. Mass Service A retail store provides a standard array of products from which customers may choose. Service Factory Electricity is a commodity available continuously to customers. Less Customized-Less Labor Intensive
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
  • 28.
  • 29.
  • 30. Strategic Planning Mission and Vision Corporate Strategy Operations Strategy Marketing Strategy Financial Strategy Voice of the Business Voice of the Customer
  • 31. Policy Deployment Translating corporate strategy into measurable objectives
  • 32.
  • 33. Balanced Scorecard Radar Chart Dashboard
  • 34.
  • 35.
  • 36.
  • 37.
  • 38.
  • 39. Copyright 2006 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permission Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information herein.