The Fashion Operation Business

1. The Fashion Operation Business Unit Tutor Dr Neil Towers Fashion Operations Management N.Towers@manchester.ac.uk

2. 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

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

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

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

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

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

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

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

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

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

12. How operations 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.