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Chapter 2 - Operations Strategy

Chapter 2 - Operations Strategy. Competitive Priorities. Competitive Priorities. Corporate strategy goals core competencies environmental responses new products/services global strategies. Figure 2.1. Competitive Priorities. Corporate strategy goals core competencies

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Chapter 2 - Operations Strategy

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  1. Chapter 2 -Operations Strategy

  2. Competitive Priorities

  3. Competitive Priorities • Corporate strategy • goals • core competencies • environmental responses • new products/services • global strategies Figure 2.1

  4. Competitive Priorities • Corporate strategy • goals • core competencies • environmental responses • new products/services • global strategies • Market analysis • segmentation • needs assessment Figure 2.1

  5. Competitive Priorities • Corporate strategy • goals • core competencies • environmental responses • new products/services • global strategies • Market analysis • segmentation • needs assessment • Competitive priorities • Operations Marketing • cost • quality Finance • time • flexibility Others Figure 2.1

  6. Competitive Priorities • Corporate strategy • goals • core competencies • environmental responses • new products/services • global strategies Cost 1. Low-cost operations Quality 2. High-performance design 3. Consistent quality Time 4. Fast delivery 5. On-time delivery 6. Development speed Flexibility 7. Customization 8. Volume flexibility • Market analysis • segmentation • needs assessment Figure 2.1

  7. Competitive Priorities • Corporate strategy • goals • core competencies • environmental responses • new products/services • global strategies • Market analysis • segmentation • needs assessment • Competitive priorities • Operations Marketing • cost • quality Finance • time • flexibility Others Figure 2.1

  8. Competitive Priorities • Corporate strategy • goals • core competencies • environmental responses • new products/services • global strategies • Market analysis • segmentation • needs assessment • Competitive priorities • Operations Marketing • cost • quality Finance • time • flexibility Others • Functional area strategies • finance • marketing • operations • others Figure 2.1

  9. Competitive Priorities • Corporate strategy • goals • core competencies • environmental responses • new products/services • global strategies • Market analysis • segmentation • needs assessment • Competitive priorities • Operations Marketing • cost • quality Finance • time • flexibility Others • Capabilities • current • needed • plans • Functional area strategies • finance • marketing • operations • others Figure 2.1

  10. Health Clinic Process

  11. Health Clinic Process D R P B T D: Doctor (examination rooms) R: Radiology (X-ray) T: Triage (assess severity of illness) B: Blood (lab test) P: Pharmacy (fill prescriptions) Figure 2.2

  12. Health Clinic Process Physical exam Physical exam D R P B T D: Doctor (examination rooms) R: Radiology (X-ray) T: Triage (assess severity of illness) B: Blood (lab test) P: Pharmacy (fill prescriptions) Figure 2.2

  13. Health Clinic Process Physical exam Physical exam D R P Broken arm Broken arm B T D: Doctor (examination rooms) R: Radiology (X-ray) T: Triage (assess severity of illness) B: Blood (lab test) P: Pharmacy (fill prescriptions) Figure 2.2

  14. Health Clinic Process Physical exam Flu Physical exam D R P Broken arm Broken arm B T Flu D: Doctor (examination rooms) R: Radiology (X-ray) T: Triage (assess severity of illness) B: Blood (lab test) P: Pharmacy (fill prescriptions) Figure 2.2

  15. Automobile Assembly Process

  16. Automobile Assembly Process A H F S A: Front-end body-to-chassis assembly H: Hood attachment F: Fluid filling S: Start-up testing Figure 2.3

  17. Automobile Assembly Process Midsized 6 cylinder Midsized 6 cylinder A H F S A: Front-end body-to-chassis assembly H: Hood attachment F: Fluid filling S: Start-up testing Figure 2.3

  18. Midsized 6 cylinder Midsized 6 cylinder Compact 4 cylinder Compact 4 cylinder Automobile Assembly Process A H F S A: Front-end body-to-chassis assembly H: Hood attachment F: Fluid filling S: Start-up testing Figure 2.3

  19. Strategy and Decisions

  20. Strategy and Decisions Corporate strategy Figure 2.4

  21. Strategy and Decisions Corporate strategy Market analysis Figure 2.4

  22. Strategy and Decisions Corporate strategy Market analysis Competitive priorities Figure 2.4

  23. Strategy and Decisions Corporate strategy Market analysis Competitive priorities Operations strategy Figure 2.4

  24. Services Manufacturing • Standardized services • Assemble-to-order • Customized services • Make-to-stock • Assemble-to-order • Make-to-order Strategy and Decisions Corporate strategy Market analysis Competitive priorities Operations strategy Figure 2.4

  25. Services Manufacturing • Standardized services • Assemble-to-order • Customized services • Make-to-stock • Assemble-to-order • Make-to-order Strategy and Decisions Corporate strategy Market analysis Competitive priorities Operations strategy Figure 2.4

  26. Services Manufacturing • Standardized services • Assemble-to-order • Customized services • Make-to-stock • Assemble-to-order • Make-to-order Strategy and Decisions Corporate strategy Market analysis Competitive priorities Operations strategy • Process decisions • Quality decisions • Capacity, location, and layout decisions • Operating decisions Figure 2.4

  27. Services Manufacturing • Standardized services • Assemble-to-order • Customized services • Make-to-stock • Assemble-to-order • Make-to-order Strategy and Decisions Corporate strategy Market analysis Competitive priorities Operations strategy • Process decisions • Quality decisions • Capacity, location, and layout decisions • Operating decisions Figure 2.4

  28. Services Manufacturing • Standardized services • Assemble-to-order • Customized services • Make-to-stock • Assemble-to-order • Make-to-order Strategy and Decisions Corporate strategy Market analysis Competitive priorities Capabilities Operations strategy • Process decisions • Quality decisions • Capacity, location, and layout decisions • Operating decisions Figure 2.4

  29. Lower Florida Keys Health System

  30. First Floor Lower Florida Keys Health System

  31. Second Floor Third Floor Lower Florida Keys Health System

  32. Chaparral Steel

  33. Strategies at LFKHS and Chaparral

  34. Strategies at LFKHS and Chaparral Table 2.1

  35. Strategies at LFKHS and Chaparral Decision Area Business strategy Competitive priorities Process design Table 2.1

  36. Strategies at LFKHS and Chaparral Decision Area LFKHS Business Low-volume, strategy customized services Competitive Customized services, priorities consistent quality, and volume flexibility Process Labor intensive design Table 2.1

  37. Decision Area LFKHS Chaparral Business Low-volume, High-volume strategy customized services standardized products made to stock Competitive Customized services, Low-cost, fast delivery, priorities consistent quality, and consistent quality and volume flexibility Process Labor intensive Capital intensive design Strategies at LFKHS and Chaparral Table 2.1

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