NATIONAL COLLEGE OF BUSINESS AND ARTS

Master in Business Administration

Fairview, Quezon City

SUBJECT : PRODUCTION/OPERATIONS MANAGEMENT

PROFESSOR : Dr. Maximo Artieda
REPORTER : Arvee Joice L. Clemente
TOPIC : Operations Strategy

Operations Strategy:
Is the total pattern of decisions with shape the long term capabilities of any type of operations
and their contribution to the overall strategy.

Role of Operations Strategy:

 Provide a plan that makes best use of resources which specifies the policies and plans for
using organizational resources.
 Supports business strategy

BUSINESS/FUNCTIONAL STRATEGY

Business Strategy- Defines long range plan for company

Marketing Strategy-marketing plans to support business plan
Operations Strategy- Develops a plan for the operations function to support business strategy
Finance Strategy- Develops financial plan to support business plan.

DEVELOPING BUSINESS STRATEGY

MISSION
EXAMPLE: DELL COMPUTER “TO BE THE MOST SUCCESSFUL COMPUTER COMPANY IN THE
WORLD”

CORE COMPETENCIES
EXAMPLE: STRENGTH OF WORKERS, MODERN FACILITIES, BEST TECHNOLOGIES

ENVIRONMENTAL SCANNING
EXAMPLE: POLITICAL, SOCIAL, ECONOMIC, MARKET PLACE AND GLOBAL TRENDS
DEVELOPING THE OPERATIONS STRATEGY
• A PLAN FOR THE DESIGN AND MANAGEMENT OF OPERATIONS FUNCTIONS
• DEVELOPED AFTER THE BUSINESS STRATEGY
• FOCUSES ON THE SPECIFIC CAPABILITIES WHICH GIVE IT A COMPETITIVE EDGE-COMPETITIVE
PRIORITIES

COMPETITIVE PRIORITIES

Competing on COST?
Offering a product at a low price relative to competition
 Typically high volume products
 Often limit product range and offer little customization
 Low cost does not mean low quality
Competing on QUALITY?
2 major dimensions
 High Performance design
-superior features. High durability and excellent customer service
 Product and service consistency
-meets design specifications
Competing on TIME?
One of the most important competition priorities
Time related issues involve
 Rapid delivery: focused on shorter time between order placement and delivery
 On-Time delivery: Deliver product exactly when needed every time

Competing on FLEXIBILITY?
Company must accommodate change by being flexible
 Production flexibility:
-easily switch production from one item to another
-easily customize product/service to meet specific requirements of a customer
 Volume flexibility
-Ability to ramp production up and down to match market demands.
LINKAGE BETWEEN

CORPORATE STRATEGY-Business to be in