OPERATIONS STRATEGY
Chapter 2

Irwin/McGraw-Hill

© The McGraw-Hill Companies, Inc. 2004
1
Outline
1. Operations Strategy Model
2. Emphasis on Operations Objectives
3. Linking Strategies
4. Focused Operations
5. G...
Operations Strategy Model (Figure 2.1)
Cor por at e and
business st r at egy

I nt er nal
analysis

Oper at ions St r at e...
Operations Strategic Objectives
Quality
Flexibility
Delivery
Cost efficiency

McGraw-Hill/Irwin

© The McGraw-Hill Compani...
Examples of Important Policies in Operations (Table
2.2)
Pol y Type
i
c

Process

Quality S
ystems
Capacity
I
nventory

Mc...
Types of Focus
Product focus
Process type
Technology
Volume of sales
Make-to-stock and make-to-order
New products and matu...
Global Scope of Operations
“Traditional” versus “Global” company
Characteristics of “Global Corporation”
Implications of “...
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Presentaion for land bank april 2013 chap 2

  1. 1. OPERATIONS STRATEGY Chapter 2 Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc. 2004 1
  2. 2. Outline 1. Operations Strategy Model 2. Emphasis on Operations Objectives 3. Linking Strategies 4. Focused Operations 5. Global Scope of Operations McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc. 2004 2
  3. 3. Operations Strategy Model (Figure 2.1) Cor por at e and business st r at egy I nt er nal analysis Oper at ions St r at egy Mission Dist inct ive Compet ence Ext er nal analysis Obj ect ives (cost , qualit y, f lexibilit y, deliver y) Funct ional st r at egies in mar ket ing, f inance, engineer ing, human r esour ces, and inf or mat ion syst ems Policies (pr ocess, qualit y syst ems, capacit y, and invent or y) Consist ent pat t er n of decisions McGraw-Hill/Irwin Result s © The McGraw-Hill Companies, Inc. 2004 3
  4. 4. Operations Strategic Objectives Quality Flexibility Delivery Cost efficiency McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc. 2004 4
  5. 5. Examples of Important Policies in Operations (Table 2.2) Pol y Type i c Process Quality S ystems Capacity I nventory McGraw-Hill/Irwin Pol y Ar a i c e S of process pan Automation Process f low J specialization ob S upervision Approach T raining S uppliers Facility size Location I nvestment Amount Distribution Control S ystems S r t g c Ch c s ta e i oie Make or by Handmade or machine –made Flexible or hard automation Proj ect, batch, line, or continuous Highly decentralized or centralized Prevention or inspection T echnical or managerial training S elected on quality or cost One large or several small f acilities Near markets, low cost, or f oreign Permanent or temporary High levels or low levels of inventory Centralized or decentralized warehouses Control in great detail or less detail © The McGraw-Hill Companies, Inc. 2004 5
  6. 6. Types of Focus Product focus Process type Technology Volume of sales Make-to-stock and make-to-order New products and mature products McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc. 2004 6
  7. 7. Global Scope of Operations “Traditional” versus “Global” company Characteristics of “Global Corporation” Implications of “global”corporation for operations management McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc. 2004 7
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