Situational crime prevention in an essay, explain how situational

Situational Crime Prevention
In an essay, explain how situational crime prevention is utilized
in reducing crime. In your discussion, please provide one
example of a situational crime prevention measure and explain
whether drug, violent, or property crimes are better suited to
situational controls.
Your paper should be 2-3 pages in length and conform to
writing standards. Include at least three scholarly references in
addition to the course textbook.
Applied Operations Management
5LO507
Lecture 1 – Introduction Teaching Team:Dr Simon Peter
Nadeem (Module Leader)Dr Jay Daniel
Sensitivity: Internal
Dr Simon Peter Nadeem (Module Leader)
Office E501
[email protected]
Phone: 01332 593498Dr Jay Daniel
Office E501
[email protected]
Phone: 01332 59Mike Edwards
(for HND student group)
[email protected]
Office: E-501 (Meetings by appointment only)
Teaching Team

Note: Meetings with Teaching Team Members can be arranged
by appointment ONLY
To students from:
BA (Hons) Business Management (MKT, HRM, Int. BUS,
Finance & Enterprise)
Business & Management HND
Joint Honours
Exchange
…
WELCOME EVERYONE
3
What is Operations Management?
4
Operations Management

INPUTS
Human labor
Materials and parts
Energy (gas, electricity, coal)
Machinery/equipment
TRANSFORMATION
Process
Manufacturing
Assembly
Location change
Exchange (retail)
Storage (distribution center)
OUTPUTS
Finished product
Service interaction with customer
Increased knowledge or satisfaction
The process that effectively produce, transform, and deliver a
product or service.
Heizer, Jay & Render, Barry (2013). Operations Management,
11th ed, Pearson
5
Customers
Transformed resources
Ingredients
Packaging

Customers
Transforming resources
Equipment
Fittings
Staff
Inputs and outputs at SUBWAY®
Input resources
Served and satisfied customers
Transformation process
Cutting
Cooking
‘Assembling’
Wrapping
6
7
7

Value Chain
8
The modern business environment is highly volatile and
intensely competitive, and is likely to remain so for the
foreseeable future. The role of the operations function; how the
organisation actually sources, produces and delivers goods and
services to demanding customers, becomes a key contributor to
superior performance and customer satisfaction.
The module provides a framework, to understand the crucial
role of operations to business success.
The aim of this module is to provide students with a knowledge
and understanding of Operations and Supply Chain
Management. It provides the theory as well as practical
applications of different business sectors.
What’s the module about ?
9
On successful completion of the module, students will be able
to:
Understand the operations function as a mechanism for
competitive advantage.
Recognise the need to maintain and improve operations to meet
demanding quality standards and customer expectations

Understand the role of design, planning, control and
improvement in the operations function, and be able to apply
this knowledge to practical workplace situations in a variety of
business sectors.
Analyse Warehouse / DC, transport, process and other
components in the Ops management – Creating and Maintaining
Value, Reducing Obsolescence, ensuring Effectiveness and
Efficiency
Apply research skills and appropriate methodologies to solve
operations and supply chain problems
Analytical, Modelling, Decision making Team working,
Innovation skills
Learning Knowledge and Skills
10
Please arrive on time and remain until the end of session
Please ask questions, if you got about the topic
Please no phones or games in class
Computers are ok for study purposes (no Facebook).
Conduct in Class
11
Slack, N. et al (2013), Operations Management, 7th Edition,
London, FT Prentice-Hall.
Slack, N. et al (2019), Operations Management, 9th Edition,
London, Pearson

Both versions are available as an E-book through Derby
University Library
Textbook & References
Additional References are available in the module handbook.
12
Have a good attendance record and be on time - scanner
monitoring NO STUDENT CARD, NO ATTENDANCE
Participate & Contribute in class and share experiences
Lectures/Seminars (24%) 48 hrs Cases study, group
discussions, etc.
Guided independent study (76%) 152 hrs
Total 200 hrs
On time Assignments submissions
Read the relevant textbook chapter and UDO - Blackboard
Online notes
Complete the set of activities during class
You are responsible for your own performance
Enjoy the process of learning new things
What is expected from you
13
Assessments AssessmentTaskWeightingDueCW 1Group
Assignment30%Week 5 Commencing

22nd Feb. 2021CW 2Individual Management Report70%14th
May, 2021
14
Blackboard can be accessed via UDO and enables students to
communicate electronically with tutors and peers, access course
materials, assessments and other resources relevant to their
studies.
UDO - Blackboard
15
Thank you for your attention
16

5LO507
Lecture 4 – Performance in OperationsTeaching Team:Dr Simon
Peter Nadeem (Module Leader)Dr Jay DanielMike Edwards
2
Performance Management Gets Results!
Measure of Success
Measurement-Managed Organizations
Non Measurement-Managed Organizations
Industry leader over the past 3 years
Three year return on investment (ROI)
Success in last major change effort
74%
44%
80%
45%
97%
55%
Measure of Success
Measurement-Managed Organizations
Non Measurement-Managed Organizations
Agreement on strategy
Communication of strategy
Cooperation and teamwork
90%

47%
60%
8%
85%
38%
Sources: John H. Ingle & Wm. Schiemann, “Is Measurement
Worth It” Management Review, March 1996
Morgan & Schiemann, “Measuring People & Performance:
Closing the Gap” Quality Progress, January 1999
3
Performance Management
Balanced Scorecard
If you can’t measure it … you can’t manage it!
At the highest level, the Balanced Scorecard is a framework that
helps organizations translate strategy into operational objectives
that drive both behavior and performance.
4
Balanced Scorecard
Leading
Lagging
Soft

Hard
Vision
& Strategy
CUSTOMER
“To achieve our vision, how should we appear to our
customers?”
Objectives
Measures
Targets
Initiatives
FINANCIAL
“To succeed financially, how should we appear to our
shareholders?”
Objectives
Measures
Targets
Initiatives
INTERNAL BUSINESS PROCESSES
“To satisfy our shareholders and customers, what business
processes must we excel at?”
Objectives
Measures
Targets
Initiatives

INNOVATION AND LEARNING
“To achieve our vision, how will we sustain our ability to
change and improve?”
Objectives
Measures
Targets
Initiatives
5
Strategy Map (Cause & Effect Relationship)
6
Strategy Map Cascade

7
8
EFQM (European Foundation for Quality Management) as a
dashboard system and a tool for management control. We can
see it as a management control system.
Design

Planning and control
Operation’s performance
Operations strategy
Improvement
Operations management
Operations strategy
Slack’s model of Operations (2013)
9
9
Why is operations performance important in any organisation?
Performance can have massive impacts (+ve and –ve)
10
10

Distribution Center Metrics Activity
What performance metrics are frequently used by for managing
Warehouse / DCs operations?
11
Distribution Center Metrics
Source: 2010 Metrics Report, WERC, (May 26, 2010).
What performance metrics are frequently used by shippers for
mange their DCs.
12
Shareholders
Directors / top management
Staff
Staff representative bodies
Regulatory bodies
Government
Suppliers
Lobby / interest groups
Customers
Every Operation has Stakeholder’s
‘Society’

You need to identify Stakeholders, and then manage them
13
13
Operations and process excellence
Good enough never is……..
Being excellent is what’s needed today
Enhanced service
Secure revenue
Lower costs
Process efficiency
Reduced errors, better resilience
Lower ‘operational’ risk
Higher capacity utilization
Lower capital requirements

Capabilities for future innovation
Opportunities for process learning
14
14
Sustainable Competitiveness
The five performance objectives of Operations
Quality
RIGHT (First Time)
Speed
Being FAST
Dependability
Being ON TIME
Cost
Being PRODUCTIVE
Being ABLE TO CHANGE
Flexibility

15
15
Minimum cost, maximum value
Minimum price, highest value
Fast throughput
Quick delivery
Reliable operation
Dependable delivery (on time)
Error-free processes
Error-free products and services
Ability to change
Frequent new products, maximum choice
Excelling at the five objectives
Dependability
Cost
Speed
Quality
Flexibility
Internal benefits
External benefits
16
A virtuous circle

16
Quality in… … a hospital ?
Patients receive the most appropriate treatment.
Treatment is carried out in the correct manner.
Patients are consulted and kept informed.
Staff are courteous, friendly and helpful.
17
17
3

The time between requiring treatment and receiving treatment is
kept to a minimum.
Speed in… … a hospital ?
The time for test results, X-rays, etc. to be returned is kept to a
minimum.
18
18
4
Dependability in a hospital ?
Proportion of appointments that are cancelled is kept to a
minimum.
Keeping appointment times.
Test results, X-rays, etc. are returned as promised.

19
19
Flexibility has several distinct meanings but is always
associated with an operation’s ability to change
The products and services it brings to the market –
Product/service flexibility
The mix of products and services it produces at any one time –
Mix flexibility
The volume of products and services it produces – Volume
flexibility
The delivery time of its products and services – Delivery
flexibility
Flexibility – What does it mean?
20
20
Flexibility in……. a hospital ?
Introducing new treatments
A wide range of treatments

The ability to adjust the number of patients treated
The ability to reschedule appointments.
21
21
Staff costs
Technology and facilities costs
Bought-in materials and services
Cost in…… a hospital ?
22
22
In small groups discuss and agree some specific performance
measure for a multiple supermarket: try and be as SMART as
possible with your POs.

Quality
Speed
Dependability
Flexibility
Cost
In Class Activity
A multiple supermarket
23
Relative Importance of Performance Objectives
Polar diagrams are used to indicate the relative importance of
each performance objective to an operation or process.
They can also be used to indicate the difference between
different products and services produced by an operation or
process.
Cost
Quality
Flexibility
Dependa-bility
Speed

24
24
Comparing Performance
Cost
Quality
Flexibility
Dependability
Speed
Product/Service
Alternative Product/Service
How do you decide:
Fashion
Food
Transport
Education
etc
How do you decide:
Logistics

Warehousing
25
25
Operations and Supply Chain Benchmarking
You can not improve what you can’t measure it…
Best in class supply chain operate at the half the cost of their
peers
Benchmarking tools ?!!
Before starting the business improvement journey, it is essential
to understand what the destination is?
What is the outcome? What is my target?
Why benchmark my operations and supply chain?
Steven Covey “The 7 Habits of Highly Effective People” book:
Habit No 2 is “to begin with end in mind”.
Ops & Supply chain performance: Compare your supply chain
with the similar supply chain and best in class.
Best in class supply chain operate at the half the cost of their
peers.
The better the level of service provided, the lower the cost----
why: 1- Get things right the first time ( there is no rework, …)
You can not improve what you can’t measure it…

26
Trade-offs and paradoxes
‘Do you want it good, or do you want it Tuesday?’
‘No such thing as a free lunch’.
‘You can’t have an aircraft which flies at the speed of sound,
carries 400 passengers and lands on an aircraft carrier.
Operations are just the same’. (Skinner - 1979)
‘Trade-offs in operations are the way we are willing to sacrifice
one performance objective to achieve excellence in another’.
Similar to Opportunity Cost in Economics
27
27
Questions?
Sheet:
Technology and facilities costs
Staff costs
Brought-in materials and services

5LO507
Lecture 2 – What is Operations Management Teaching Team:Dr
Simon Peter Nadeem (Module Leader)Dr Jay DanielMike
Edwards
Core Text
The core text for this module is:
Slack, N., Brandon-Jones, A. and Johnston, R. (2013)
Operations Management, 7th Ed, Harlow, Financial Times,
Pitman Publishing.
This is available as a e-book through the Library Resources
Its newer version is:
Slack, N. and Brandon-Jones, A. (2019) Operations
Management, 9th Ed, Pearson Education Ltd., Harlow, UK.
This is available as a e-book through the Library Resources
Most of the slides that are used are based on this textbook. See
Module Handbook for other resources
2
Discussion Starter
What is Operations and
Operations Management?

Some General Principles
Source: © Image Source/Corbis
3
What is an Operation?
A transformational process
What is a Process?
'… a series of actions or steps taken in order to achieve a
particular end.'
(The New OXFORD Dictionary of ENGLISH (1998) Oxford,
Oxford University Press, p. 1477)
4
Kamuzu Int. Airport
Airplane Landing
Bus Collection
Bus Transportation from Airplane to Immigration area
Collecting Immigration Form
Filling Immigration Form
Queuing

Visa Approval
Visa Payment
Visa Stamp
Immigration Clearance Interview
Passenger Cleared from Immigration and Ready to Collect
Luggage
Operation and Process for Immigration Clearance
5
What is operations management?
Operations management is the activity of managing the
processes, systems and resources which are devoted to the
production and delivery of products and services
What resources exactly?
Raw Material
Inventory
Equipment
Cash/Budget
Staff
Etc.
IT Systems
(Slack et al 2013)

6
Operations and other Functions
What we do:
Operational
Activities
Purchasing
Accounting
and finance
Marketing
Product
Development
Engineering
Personnel
Transport
IT
All these departments
are about ‘operations’

7
What the Operations Manager does
Business Planning - what is our strategy and how does Ops
contribute to the strategy
Product Design - what products and services should we make
Resource Planning – money, people, materials, equipment, time
– always a trade-off
Location and Layout - where and how do we operate/locate
8
What the Operations Manager does
Job Design – people and technology working together
Quality – what are our standards and can we meet them
Logistics – how do we source and get the things we need and
how do we deliver to the customer
9
Operations Managers are mainly involved in

10
Planning
Improvement
Control
Design
Customers
Input resources
Output products and services
Transformed resources
Materials
Information
Customers
Transforming resources
Facilities
Staff
Design

Planning and control
Operation’s performance
Operations strategy
Improvement
Operations strategy
Slack’s (2013) Model of Operations
Forms the basis for the whole module
11
11
Back office operation in a bank
Kitchen unit manufacturing operation
Take-out / restaurant operation

These are all operations
A Learning Operation?
12
12
The best way to start understanding the nature of ‘Operations’
is to look around you.
Everything you can see around, has been produced by an
operation.
Every service you consumed today (radio station, bus service,
lecture, etc.) has also been produced by an operation.
Operations Managers create everything you buy, sit on, wear,
eat, throw at people and throw away.
Operations are everywhere
13
13
Operations link to all the other functions in an organisation
Engineering/ technical function
Accounting and finance function

Human resources function
Information technology (IT) function
Understanding of the capabilities and constraints of the
operations process
New product and service ideas
Understanding of the capabilities and constraints of the
operations process
Market requirements
Financial analysis for performance and decisions
Provision of relevant data
Recruitment development and training
Understanding of human resource needs
Analysis of new technology options
Understanding of process technology needs

Provision of systems for design, planning and control, and
improvement
Understanding of infrastructural and system needs
Marketing function
Product/service development function
Operations function
14
14
Macro and Micro Operations

Operations
Marketing and sales
Lots of I-T-O operations linked together
Defining internal and external customer requirements

15
Automobile assembly factory – Operations management uses
machines to efficiently assemble products that satisfy current
customer demands
16
16
Physician (General practitioner) – Operations management uses
knowledge to effectively diagnose conditions in order to treat
real and perceived patient concerns
17
17
Management consultant – Operations management uses people
to effectively create the services that will address current and
potential client needs

18
18
Disaster relief charity – Operations management uses ours and
our partners’ resources to speedily provide the supplies and
services that relieve community suffering
19
19
Advertising agency – Operations management uses our staff’s
knowledge and experience to creatively present ideas that
delight clients and address their real needs
20
20
Variety In Operations
Pure Goods
Tangible

Storable
Produced in advance
Transportable
Quality evident
Mix of Both
Intangible
Produced on demand
High customer contact
Not transportable
Quality difficult to assess
Pure Services
Crude Oil
Oil Refining
Machine Tools
Restaurant
Software house
Consultancy
Psychiatry
21
Financial services
An account management centre at a large retail bank
Financial analyst advising a client at an investment bank

Furniture manufacturing
Mass production of kitchen units
Craft production of reproducing ‘antique’ furniture
Hotels
Value-for-money hotel
Lobby of an international luxury hotel
Significant Variety within sectors
22
22
Variation in demand
High
Low
Visibility
High
Low

Variety
High
Low
High
Volume
Low
High
Analysing Differences-The 4 Vs
23
23
Volume
It’s important to understand how different operations are
positioned on the 4 Vs.
Is their position where they want to be? Can they re-position?
Do they understand the strategic implications of this choice?
Variety
Variation
Visibility

Low
High
High
High
High
Low
Low
Low
Mwagusi Safari Lodge
Formule 1 Hotel
A 4 Vs profile of two operations
(Read the Case Study – Ch 1)
24
Case Study on page 24-25 of the book (9th edition).
24
Questions?
APPLIED OPERATIONS MANAGEMENT 1

P O R T E R ’ S
F I V E F O RC E S
M O DE L
Miguel Sánchez Araujo
The five forces are a
framework for understanding
the competitive forces at work
in an industry, and which drive
the way economic value is
divided among industry actors
WHAT IS PORTER 5
FORCES MODEL?
THREAT OF SUBSTITUTIVE
PRODUCTS OR SERVICES
BARGAINING
POWER OF SUPPLIERS
BARGAINING

POWER OF BUYERS
THREAT OF NEW
ENTRANTS
RIVALRY
AMONG
EXISTENT
COMPETITORS
PORTER 5 FORCES MODEL
Porter, M.E. (1980) Competitive Strategy:
Techniques for Analyzing Industries and
Competitors, The Free Press,
1. BARGAINING POWER
OF BUYERS
Your clients will have more or
less power depending in your
competitive advantages
against your competitors, for
example:
supplier
price

e can
be considered as a high or
low quality one
EXAMPLES OF CLIENTS/BUYERS POWER
BARGAINING POWER OF BUYERS
HIGH NUMBER OF
BUYERS
LOW POWER OF
BUYERS
VERY ATTRACTIVE
SECTOR WITH A LOT
OF POWER
= =

2. BARGAINING
POWER OF SUPPLIERS
Your suppliers will have more
or less power depending in
their competitive advantages
against their competitors, for
example:
supplier
lowest price
be considered as a high or
low quality one
EXAMPLES OF SUPPLIERS POWER
BARGAINING POWER OF SUPPLIERS
LOW NUMBER OF

SUPPLIERS
HIGH POWER OF
SUPPLIERS
LESS ATTRACTIVE
SECTOR WITH LOW
POWER
= =
SUPPLIER
COMPANIES
3. THREAT OF NEW
ENTRANTS
If your sector or industry has
high or low barriers to enter
Examples of barriers to enter:
companies achieve huge
production levels compared to
small businesses
vestments
regardless of the Scale
channels

THREAT OF NEW ENTRANTS
HIGH NUMBER OF
BARRIERS TO ENTER
LOW THREAT OF
NEW ENTRANTS
VERY ATTRACTIVE
SECTOR WITH A LOT
OF POWER
= =
4. THREAT OF
SUBSTITUTIVE PRODUCTS
OR SERVICES
services are at least two
products/services that could
be used for the same purpose
by the same consumers.

identical, similar, or
comparable to another
product, in the eyes of the
consumer.
that your product/service is
substituted by another one,
you’re in a weak position
against that threat
EXAMPLES OF SUBSTITUTIVE
EXAMPLES OF SUBSTITUTIVE
THREAT OF SUBSTITUTIVE PRODUCTS OR
SERVICES

HIGH NUMBER OF
SUBSTITUTIVE
PRODUCTS /
SERVICES
HIGH THREAT OF
SUBSTITUTIVE
PRODUCTS OR
SERVICES
LESS ATTRACTIVE
SECTOR
(WITH LOW
POTENTIAL)
= =
5. RIVALRY AMONG
EXISTENT COMPETITORS
establish their strategy
based on:

RIVALRY AMONG EXISTENT COMPETITORS
HIGH NUMBER OF
COMPETITORS
HIGH RIVALRY IN
THE SECTOR
LESS ATTRACTIVE
SECTOR
(WITH LOW
POTENTIAL)
= =
ATTRACTIVE -vs- UNATRACTIVE INDUSTRIES
threats from new players

suppliers bargaining power,
a lot of suppliers or a better
position to negociate
barely the only provider of their
products/services
unique qualities or technologies
n, stable market
with few and controlled competitors
threats from new players
a few of suppliers or a poor position
to negociate
many other providers of their
products/services
common qualities or technologies
with many and uncontrolled
competitors

5LO507
Lecture 3 – Operations Strategy and ProductivityTeaching
Team:Dr Simon Peter Nadeem (Module Leader)Dr Jay
DanielMike Edwards
Competitiveness
How effectively an organization meets the wants and needs of
customers relative to others that offer similar goods or services
Organizations compete through some combination of their
marketing and operations functions
What do customers want?
How can these customer needs best be satisfied?
2
Businesses Compete Using Marketing
Identifying consumer wants and needs
Pricing
Advertising and promotion

3
Businesses Compete Using Operations
Product and service design
Cost
Location
Quality
Quick response
4
Flexibility
Inventory management
Supply chain management
Service
Managers and workers
Businesses Compete Using Operations
5

Operations and Operations strategy
ENVIRONMENT
ENVIRONMENT
INPUT
OUTPUT
GOODS AND SERVICES
TRANSFORMED RESOURCES
MATERIALS INFORMATION CUSTOMERS
TRANSFORMING RESOURCES
ENABLING RESOURCES
OPERATIONS STRATEGY
DESIGN
PLANNING AND CONTROL
IMPROVEMENT
THE OPERATIONS COMPETITIVE ROLE AND POSITION
OPERATIONS STRATEGIC OBJECTIVES

Operations strategy
6
Setting broad objectives that direct an organisation towards its
overall goal.
Planning the path (in general rather than specific terms) that
will achieve these goals.
Focus on long-term rather than short-term objectives.
Dealing with the total picture rather than individual activities.
Being detached from, and above, the confusion and distractions
of day-to-day activities.
What is Strategy?
7
7

Buyers
Suppliers
Substitute
products
Potential
entrants
Industry competitors
Rivalry among
existing firms
Threat of
new entrants
Bargaining power
of suppliers
Bargaining power
of buyers
Threat of
substitutes
Porter, M.E. (1980) Competitive Strategy: Techniques for
Analyzing Industries and Competitors, The Free Press,
Competitive role - Porter’s 5-Forces Model
Is this an attractive
industry to be in?
8
Bargaining Power of Suppliers

The term 'suppliers' comprises all sources for inputs that are
needed in order to provide goods or services. Supplier
bargaining power is likely to be high when: The market is
dominated by a few large suppliers rather than a fragmented
source of supply, · There are no substitutes for the particular
input, · The suppliers customers are fragmented, so their
bargaining power is low, · The switching costs from one
supplier to another are high, · There is the possibility of the
supplier integrating forwards in order to obtain higher prices
and margins. This threat is especially high when · The buying
industry has a higher profitability than the supplying industry, ·
Forward integration provides economies of scale for the
supplier, · The buying industry hinders the supplying industry
in their development (e.g. reluctance to accept new releases of
products), · The buying industry has low barriers to entry. In
such situations, the buying industry often faces a high pressure
on margins from their suppliers. The relationship to powerful
suppliers can potentially reduce strategic options for the
organization.
Bargaining Power of Customers
Similarly, the bargaining power of customers determines how
much customers can impose pressure on margins and volumes.
Customers bargaining power is likely to be high when · They
buy large volumes, there is a concentration of buyers, · The
supplying industry comprises a large number of small operators
· The supplying industry operates with high fixed costs, · The
product is undifferentiated and can be replaces by substitutes, ·
Switching to an alternative product is relatively simple and is
not related to high costs, · Customers have low margins and are
price sensitive, · Customers could produce the product
themselves, · The product is not of strategic importance for the
customer, · The customer knows about the production costs of
the product · There is the possibility for the customer
integrating backwards.
Threat of New Entrants
The competition in an industry will be the higher, the easier it

is for other companies to enter this industry. In such a situation,
new entrants could change major determinants of the market
environment (e.g. market shares, prices, customer loyalty) at
any time. There is always a latent pressure for reaction and
adjustment for existing players in this industry. The threat of
new entries will depend on the extent to which there are barriers
to entry. These are typically · Economies of scale (minimum
size requirements for profitable operations), · High initial
investments and fixed costs, · Cost advantages of existing
players due to experience curve effects of operation with fully
depreciated assets, · Brand loyalty of customers · Protected
intellectual property like patents, licenses etc, · Scarcity of
important resources, e.g. qualified expert staff · Access to raw
materials is controlled by existing players, · Distribution
channels are controlled by existing players, · Existing players
have close customer relations, e.g. from long-term service
contracts, · High switching costs for customers · Legislation
and government action
Threat of Substitutes
A threat from substitutes exists if there are alternative products
with lower prices of better performance parameters for the same
purpose. They could potentially attract a significant proportion
of market volume and hence reduce the potential sales volume
for existing players. This category also relates to
complementary products. Similarly to the threat of new
entrants, the treat of substitutes is determined by factors like ·
Brand loyalty of customers, · Close customer relationships, ·
Switching costs for customers, · The relative price for
performance of substitutes, · Current trends.
Competitive Rivalry between Existing Players
This force describes the intensity of competition between
existing players (companies) in an industry. High competitive
pressure results in pressure on prices, margins, and hence, on
profitability for every single company in the industry.
Competition between existing players is likely to be high when
· There are many players of about the same size, · Pl ayers

have similar strategies · There is not much differentiation
between players and their products, hence, there is much price
competition · Low market growth rates (growth of a particular
company is possible only at the expense of a competitor), ·
Barriers for exit are high (e.g. expensive and highly specialized
equipment).
Porter (1985) Value Chain
Infrastructure
HRM
IT
Procurement
Inbound Ops Outward Mark & After-sales
Service
Log Log Sales
Margin
Support
Primary

Organisations are collections of discrete activities, in which
Sustainable Competitive Advantage (SCA) resides
9
The idea of the value chain is based on the process view of
organisations, the idea of seeing a manufacturing (or service)
organisation as a system, made up of subsystems each with
inputs, transformation processes and outputs. Inputs,
transformation processes, and outputs involve the acquisition
and consumption of resources - money, labour, materials,
equipment, buildings, land, administration and management.
How value chain activities are carried out determines costs and
affects profits.
Most organisations engage in hundreds, even thousands, of
activities in the process of converting inputs to outputs. These
activities can be classified generally as either primary or
support activities that all businesses must undertake in some
form.
According to Porter (1985), the primary activities are:
Inbound Logistics - involve relationships with suppliers and
include all the activities required to receive, store, and
disseminate inputs.
Operations - are all the activities required to transform inputs
into outputs (products and services).
Outbound Logistics - include all the activities required to
collect, store, and distribute the output.
Marketing and Sales - activities inform buyers about products
and services, induce buyers to purchase them, and facilitate
their purchase.
Service - includes all the activities required to keep the product
or service working effectively for the buyer after it is sold and
delivered.
Secondary activities are:

Procurement - is the acquisition of inputs, or resources, for the
firm.
Human Resource management - consists of all activities
involved in recruiting, hiring, training, developing,
compensating and (if necessary) dismissing or laying off
personnel.
Technological Development - pertains to the equipment,
hardware, software, procedures and technical knowledge
brought to bear in the firm's transformation of inputs into
outputs.
Infrastructure - serves the company's needs and ties its various
parts together, it consists of functions or departments such as
accounting, legal, finance, planning, public affairs, government
relations, quality assurance and general management.
What is the role of the operations function ?
Operations
As Effector
Operations
as follower
Operations
as leader
Ops
Strategy

Operations
implements strategy
by delivering what is
needed - ‘keeping the
promises’
Operations
supports strategy
by developing useful
objectives to achieve
the required strategy
Operations
drives strategy by
developing ways of
achieving real competitive
advantage
Strategy
Ops
Strategy

Ops
10
Introduction
Growth
Maturity
Decline
Sales volume
Volume
Customers
Competitors
Variety of product/ service design
Slow growth in sales
Innovators
Few/none

Customization or frequent design changes
Rapid growth in sales volume
Early adopters
Increasing numbers
Increasingly standardized
Sales slow and level off
Bulk of market
Stable number
Emerging dominant types
Market needs largely met
Laggards
Declining numbers
Possible move to commodity standardization
The effects of the PLC on Ops factors
Time
11
11
6

Marketing strategy
Operations strategy
Finance strategy
Technology strategy
Business strategy
Functional strategies
Marketing strategy
Operations strategy
Finance strategy
Technology strategy
Business strategy
Functional strategies
Corporate strategy

The strategy hierarchy
Civil Aerospace
Defence Aerospace
Marine
Nuclear
Power Systems
What business to be in?
How to allocate cash?
12
Operations Strategy within a Single Organisation
Cost
Low-cost operations
Quality
Consistent Quality
Superior Quality
Time/Delivery
On-time Delivery
Delivery Speed
Product Development speed
Flexibility
Range of products/customization
Variety
Volume Flexibility

13
Summary: Operations Strategy
The decisions which shape the long-term capabilities of the
company’s operations and their contribution to overall strategy
through the on-going reconciliation of market requirements and
operations resources. Terry Hill (2005)
Operations strategy concerns the pattern of strategic decisions
and actions which set the role, objectives and activities of an
operation. Slack et al (2010)
14
Activity: Ryanair – the airline
Through desk research - See what you can find out about
Ryanair and its operations strategy.
Evaluate how Ryanair has developed its Operations Strategy to
fit into its Corporate Strategy?
How would you assess its approach in terms of the ideas
introduced in this session?
15

Why Productivity Matters
High productivity is linked to higher standards of living
As an economy replaces manufacturing jobs with lower
productivity service jobs, it is more difficult to maintain high
standards of living
Higher productivity relative to the competition leads to
competitive advantage in the marketplace
Pricing and profit effects
For an industry, high relative productivity makes it less likely
that it will be supplanted by foreign industry
16
Productivity Measures
17
Example
10,000 Units Produced
Sold for £10/unit

500 labor hours
Labor rate: £ 9/hr
Cost of raw material: £ 5,000
Cost of purchased material: £ 25,000
What is the
labor productivity?
18
Example -Labor Productivity
10,000 units/500hrs = 20 units/hour
or we can arrive at a unitless figure
(10,000 unit* £10/unit)/(500hrs* £9/hr) = 22.22
Can you think of any advantages or disadvantages of each
approach?
Unitless figure is good for productivity comparison with other
factors.
19
Exercise
7040 Units Produced
Cost of labor: $1,000

Cost of materials: $520
Cost of overhead: $2000
What is the multifactor productivity?
20
Solution
MFP =Output
Labor + Materials + Overhead
MFP =(7040 units)
$1000 + $520 + $2000
MFP =2.0 units per dollar of input
21

What is the
multifactor
productivity?
Productivity Calculation
Units produced:5,000
Standard price:$30/unit
Labor input: 500 hours
Cost of labor:$25/hour
Cost of materials: $5,000
Cost of overhead: 2x labor cost
22

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