Operations Management 8th edition Chapter 3 Operations Strategy Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Slack et al.’s model of operations management Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Key questions In Chapter 3 – Operations strategy – Slack et al. identify the following key questions…  What is strategy and what is operations strategy?  What is the difference between a ‘top-down’ and a ‘bottomup’ view of operations strategy?  What is the difference between a ‘market requirements’ and ‘operations resources’ view of operations strategy?  How can operations strategy form the basis for operations improvement?  How can an operations strategy be formulated? The process of operations strategy Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved What is strategy?  Setting broad objectives that direct an enterprise towards its overall goal.  Planning the path (in general rather than specific terms) that will achieve these goals. Stressing long-term rather than short-term objectives.  Dealing with the total picture rather than stressing individual activities.  Being detached from, and above, the confusion and distractions of day-to-day activities. Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Strategic decisions Strategic decisions are those decisions which are widespread in their effect on the organization to which the strategy refers, define the position of the organization relative to its environment and move the organization closer to its long-term goals. Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved ‘Operations’ is not the same as ‘operational’ ‘Operations’ are the resources that create products and services. ‘Operational’ is the opposite of strategic, meaning day-today and detailed. So, one can examine both the operational and the strategic aspects of operations. Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved The strategic role of the operations function The three key attributes of operations strategy Implementing Operations contribution Be dependable Operationalize strategy Explain practicalities Supporting Be appropriate Understand strategy Contribute to decisions Driving Be innovative Provide foundation of strategy Develop long-term capabilities Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved The 4 stage model of operations contribution Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Figure 3.3 The four perspectives on operations strategy Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved The strategy hierarchy Key strategic decisions Influences on decision making Corporate strategy What business to be in? What to acquire? What to divest? How to allocate cash? Economic environment Social environment Political environment Company values and ethics Business strategy What is the mission? What are the strategic objectives of the firm? How to compete? Customer/market dynamics Competitor activity Core technology dynamics Financial constraints Functional strategy How to contribute to the strategic objectives? How to manage the function’s resources? Skills of function’s staff Current technology Recent performance of the function Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Top-down and bottom-up perspectives on operations strategy can reinforce each other Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Different competitive factors and performance objectives Competitive factors If the customers value these ... Low price Performance objectives Then, the operations will need to excel at these ... Cost High quality Quality Fast delivery Speed Reliable delivery Dependability Innovative products and services Flexibility (products/services) Wide range of products and services Flexibility (mix) The ability to change the timing or quantity of products and services Flexibility (volume and/or delivery) Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Order-winning competitive factors Order-winning factors +ve Competitive benefit Neutral −ve Performance Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Qualifying competitive factors Qualifying factors +ve Competitive benefit Neutral −ve Performance Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Less important competitive factors Less important factors +ve Competitive benefit Neutral −ve Performance Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved The effects of the product/service life cycle Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Some typical structural and infrastructural operations strategy decisions Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved In operations improvement should achieve ‘fit’ between market requirements and operations performance, but deviation from the line of ‘fit’ between market requirements and operations performance can expose the operation to risk (1 of 2) Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved In operations improvement should achieve ‘fit’ between market requirements and operations performance, but deviation from the line of ‘fit’ between market requirements and operations performance can expose the operation to risk (2 of 2) Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Nine-point performance scale For this product/service is achieved performance … Better than competitors 1 - Consistently considerably better than our nearest competitor 2 - Consistently clearly better than our nearest competitor 3 - Consistently marginally better than our nearest competitor Same as competitors 4 - Often marginally better than most competitors 5 - About the same as most competitors 6 - Often close to main competitors Worse than competitors 7 - Usually marginally worse than main competitors 8 - Usually worse than most competitors 9 - Consistently worse than most competitors Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved The importance–performance matrix Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Strategic resources and sustainable competitive advantage Operations resources can give sustainable competitive advantage if they are…  Scarce  Not very mobile  Difficult to imitate  Difficult to substitute for Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved The four stages of the process of operations strategy Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved The challenge of operations strategy formulation (1 of 2) An operations strategy should pass the following questions… Is it comprehensive? Is it coherent? Does it correspond with strategic objectives? Does it identify critical issues? Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved The challenge of operations strategy formulation (2 of 2) An operations strategy should pass the following questions… Is it comprehensive? Is it coherent? Does it correspond with strategic objectives? Does it identify critical issues? Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Operations Management 8th edition Chapter 4 Product and Service Innovation Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Key questions In Chapter 4 – Product and service innovation – Slack et al. identify the following key questions…  What is product and service innovation?  What is the strategic role of product and service innovation?  What are the stages of product and service innovation?  What are the benefits of interactive product and service innovation? Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Figure 4.2 The relationship between creativity, innovation and design Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Nature and purpose of the design activity Products, services and the processes which produce them all have to be designed. Decisions taken during the design of a product or service will have an impact on the decisions taken during the design of the process which produces those products or services and vice versa. Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Figure 4.3 The S-shaped curve of innovation Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Innovation in primary healthcare example… Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved The product and service design innovation activity as a process Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Figure 4.7 The stages of product/service design innovation Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Concept generation… Ideas from customers formally through marketing activities. Listening to customers – on a day-to-day basis. Ideas from competitor activity – For example, reverse engineering. Ideas from staff – Especially those who meet customers every day. Ideas from research and development. Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved The funnel of development Large number of design options CONCEPT Choice and evaluation screens Uncertainty regarding the final design TIME Certainty regarding the final design One design FINAL DESIGN SPECIFICATON Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Preliminary design… Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved A delay in the ‘time to market’ disproportionally delays the financial breakeven point Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Figure 4.12 Sorting out problems early saves greater disruption later in the design activity Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved Figure 4.13 Organizational structures for the design innovation process Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved ITS 631: Paper #2 Summer 2018 IG Dr. Ward ______________________________________________________________________________ Chapter 3: Operations Strategy & Ch. 4: Product & Service Innovation Any company, regardless of size, product or service, is one to which you can apply the principles of operational excellence. The basis for this paper will be either a factual case from your own work experience or a published case. For this paper, you will describe the situation in the case and then apply appropriate principles of operations strategy (Ch. 3) and product and service innovation (Ch. 4). The case should be treated as a problem presented to you by your company’s top management for analysis and a recommended course of action. In the paper, you will discuss and make a recommendation for improvement in the operations of the company based on the concepts you learned in chapters three and four. Your paper should be at minimum 8 double-spaced paragraphs. Each paragraph should contain at minimum 4 sentences. Your paper will include the following. Paragraph 1: Company Overview Paragraph 2: Situation/Problem Paragraphs 3-5: Recommendations from Ch. 3: Operations Strategy Paragraphs 6-8: Recommendations from Ch. 4: Product & Service Innovation References must be formatted in APA. Plagiarism will not be tolerated and will result in a zero grade. Please review the Academic Dishonesty Policy outlined in the syllabus and in your student handbook. Rubric for Criteria for Grading Papers 1-6 Criteria A B C F Student showed depth Student showed Student showed of knowledge of subject Student showed little knowledge of subject knowledge of subject matter well beyond knowledge of subject matter beyond citing matter primarily limited citing the textbook; matter; writer may not the textbook; writer to the textbook; writer writer cited more than have cited the minimum Knowledge cited the minimum cited the minimum the minimum number of number of references; of Subject number of references; number of references; references; all many statements and Matter most statements and some statements and statements and opinions were not (40 pts) opinions were opinions were not opinions were supported by supported by supported by supported by appropriate citations appropriate citations appropriate citations appropriate citations from the literature. from the literature. from the literature. from the literature. 27 points 35 – 32 points 31 – 28 points 40 – 36 points Comments Points Earned ITS 631: Paper #2 Summer 2018 IG Dr. Ward ______________________________________________________________________________ Quality of Research (30 pts) Student did an exceptional job of integrating course readings with additional research. Sources listed were all scholarly or practitioner journals, newspapers, or academic books from the last ten years. 30 – 27 points Student did a satisfactory job of integrating course readings with additional research. Sources listed were primarily scholarly or practitioner journals, newspapers, or academic books from the last ten years. 26 – 24 points Student did a less than satisfactory job of integrating course readings with additional research. Some sources listed were not scholarly or practitioner journals, newspapers, or academic books from the last ten years. 23 – 21 points Student did an inadequate job of integrating course readings with additional research. Many of the sources listed were not scholarly or practitioner journals, newspapers, or academic books from the last ten years. 20 points Comments Student presented Student presented Student presented Student presented ideas in a poorly ideas in a compelling ideas presented in a ideas in a coherent organized or incoherent manner with no clear, coherent manner manner with several Presentation manner with many distracting writing, with few distracting distracting writing, of Ideas and distracting writing, grammar, or spelling writing, grammar, or grammar, or spelling Mechanics grammar, or spelling problems; the page spelling problems; the problems; the page (20 pts) problems; the page length requirement was page length length requirement may length requirement may met. requirement was met. not have been met. not have been met. 20 – 19 points 18 – 16 points 15 – 14 points 13 points Comments Most citations, All citations, quotations, quotations, and Some citations, Most citations, APA and references were references were quotations, and quotations, and formatting properly formatted or properly formatted or references were not references were not (10 pts) contained one or two contained several minor properly formatted or properly formatted or minor errors. errors. contained major errors. contained many errors. 10 - 9 points 8 points 7 points 6 points Comments Total Points Earned (100 points max)
Purchase answer to see full attachment