The document provides an overview of key concepts in operations management, including: 1) Defining operations management as the management of converting inputs to outputs using transformation processes. 2) Exploring the performance objectives of quality, speed, flexibility, reliability, and cost that drive operational configuration. 3) Introducing the concept of core competencies that provide competitive advantages. 4) Viewing operations strategically by aligning market requirements with operational capabilities and resources. 5) Discussing frameworks for operational improvement and achieving sustainable fit between markets and operations.

1. Contextualizing Operations Management Royston E Morgan [email_address]

3. BA's new business class only plane Jessops shares suspended ahead of winding-up Vodafone & Orange announces UK iPhone deal

7. The input-transformation-output Model Transformed Resources Materials Information Customers Transforming Resources Facilities Staff Input Output Goods & Services Transformation Process

8. The Input Output Model Transformation Process Buns Patties Salad Car parking Staff Payment system Shop facilities Hamburger Ambience Service Ease of use Minimal waste Payment Enjoyment

11. The performance objectives drive the configuration options Quality Speed Flexibility Reliability Cost

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15. A focus on a key dimensions can give competitive advantage Speed Minimum price, highest value Quick delivery Dependable delivery Error-free products and services Frequent new products, maximum choice Cost Speed Quality Reliability Flexibility Minimum cost, maximum value Reliable operation Ability to change Error-free processes Fast throughput

19. Scaling competences Monitor Core Non Core Question Ability Competitors to follow or replicate Traceable benefit to customer Easy Hard Low High

24. Viewing Operations as Strategic

26. ‘ Fit’ operations resources to market requirements ‘fit’ Operations Capabilities Operations Performance Objectives Operations Strategy Decision Areas Market Positioning Competitor Activity Market Segmentation Understand markets Define competitive position State market requirements in terms of operations performance objectives Make strategic operations decisions … to enhance core capabilities

27. Operations Management v Operations Strategy

28. The role of operations is defined by its aspirations (Hayes and Wheelwright) Stop holding Organisation back Be as good as competitors Be best in industry Redefine Industry expectations Increasing contribution operations STAGE 1 STAGE 2 STAGE 3 STAGE 4 Ability to support strategy Ability to drive strategy Give an operations advantage Correct worst problems Link strategy with operations Adopt best practice Externally supportive Internally supportive Externally neutral Internally neutral Ability to implement strategy

29. position (with justification) the following organisations using the 4 stages of the H&W model

30. The operations strategy matrix Quality Performance objectives Resource Usage Market Competitiveness Decision areas Speed Dependability Flexibility Cost The operations strategy matrix Capacity Supply Network Process Technology Development and Organisation Operations strategy

31. Operational Improvement Model (Platt/Gregory) Assessment of the market demands, quality, delivery and service requirements AS IS assessment of organisation’s capabilities in capacity, service and delivery capability TO BE Gap Analysis and improvement objectives identified STAGE 1 STAGE 2 STAGE 3 STEP Analysis + market requirements Integration of running initiatives

33. In operations strategy ‘fit’ is the alignment between market and operations capability Market requirements Level of operations resource capability Line of fit Alignment between market and operations capability X Y

34. Virgin Trains and Nissan positioned in relation to market requirements and operations capabilities Market requirements Level of operations resource capability Line of fit Nissan Virgin Trains

36. Sustainability

37. Sustainable improvement implies simultaneous extension/improvement of market requirements and operations capabilities Market requirements Level of operations resource capability Extension of market requirements Sustainable improvement Improvements in operations capabilities

40. Level of market requirements Level of operations resource capability Line of fit External operational risk (Market needs exceeding current level of capability means risk of failing to satisfy the market) Internal operational risk (excess capability for current market needs means risk of unexploited capabilities) B A