Professional Documents
Culture Documents
Operations Strategy
What is Strategy?
Analysis at the
level of the
Flow between resources process Operational
analysis
Operations strategy is
Short-term Long-term
Timescale
e.g. capacity
decisions
How is operations strategy different from
operations management?
Micro Macro
Level of analysis
Concerned with the
macro operation
(level of the firm)
How is operations strategy different from
operations management?
Detailed Aggregated
Level of
Can we give tax What is overall
aggregation
services to the small business advice
(Concerned with
business market in capability compared
resources at an
Antwerp? with other capabilities?
aggregated level)
How is operations strategy different from
operations management?
Concrete Philosophical
Level of abstraction How do we improve Should we develop
(Concerned with our purchasing strategic alliances with
the conceptual) procedures? suppliers?
The sectoral scope of operations strategy
Products or services?
Manufacturing or non-manufacturing?
Operations strategy
should learn from
day-to-day
experiences
Bottom-up
Operations strategy must reflect four perspectives top-down,
bottom-up, market requirements, and operations resources
Corporate strategy
Business strategy
Top-down
Capacity Quality
Supply networks Speed
Operations Market
Process technology Dependability
resources requirements
Development and Flexibility
organisation Cost
Bottom-up
Emergent sense of
what the strategy
should be
Operational
experience
Top-down and bottom-up perspectives Top down
of strategy for the Metrology Company
Corporate strategy
Corporate objectives impact on
business objectives which, in
turn, influence Operations Business strategy
Strategy
Operations strategy
Strategic
reconciliation
Operations Competitors
processes actions
Processes Competitors
Integration of equipment Big groups dominating
supply and client professional theatres
requirements In-house operations
Design process growing in exhibitions
market
Supplier liaison process
Conference market still
fragmented
The market perspective analysis of the
garment company
CUSTOMERS
Segmentation on:
Age youth
Purpose general
COMPETITORS
Traditionally weak in:
promotion
design innovation
The operations resource perspective
analysis of the lighting company
Resources
Tangible:
Equipment
Staff
Intangible:
Reputation
Relationships (internal
and external)
Experience
Strategic
reconciliation
Operations strategy is ..
Average Average
revenue cost
Structural issues
Infrastructural issues
The operations strategy matrix
Resource usage
Market competitiveness
Quality
Performance objectives
Speed
Flexibility
Cost
Decision areas
7-Eleven Japan
Largest retailer in Japan
Sells 15.X as much per store as nearest rival
History of cautious expansion and technical and service innovation
Field Counsellors spread operations knowledge (also distance training)
Expansion by territory to reduce distribution costs
Early use of TIS (Total Information System)
TIS controls stock replenishment by twice a day delivery (sales analysed twice
a day)
New systems not Internet-based
New service includes:
Bank terminals
Downloading games
Downloading music to MD
Internet ordering and collection
RESOURCE DEPLOYMENT
Distribution centre Information sharing
QUALITY of products grouping by and parenting system
and services temperature spreads service
ideas
Distribution centres
Speed and and inventory
Market Competitiveness
dependability combined management systems
to indicate AVAILABILITY give fast stock
replenishment