The document outlines learning objectives for a chapter on operations strategy. It discusses key concepts like competitive priorities, customer wants and needs, and operations strategy. The objectives aim to define operations strategy, understand how it supports organizational objectives, and analyze real-world operations strategies using frameworks presented in the chapter.
Challenges
Inaccurate forecasts of retailer demand has become a major issue at Obermeyer. The two major factors that made this task more difficult was the increase in product variety and intense competition in market. Second challenge the company had faced was to allocate production between Hong Kong and China. Although Obermeyer had 1/3 of Parka production in China for 1992, this year the organization insisted on increasing the sales to half. There was difference in quality and labor rate at China and Hong Kong which made allocation decision more difficult.
Another challenge the company faced was the larger lead time. The company had supplies of raw materials from various countries which resulted in delayed production time. Organization challenges along with competition from competitor companies were major challenges the company had faced.
Analysis
From the sales predictions that the six managers forecasted, a coefficient of variation (COV) was determined, which indicated the level of spread of the forecasted data. The COV values were broadly divided into two levels, the low risk group and the high risk group. Every value below 0.2 were considered to be among the lower risk items and all the items above COV value of 0.2 were considered to be of higher risks. Once the risk levels of each item were determined, the quantities of items to be produced in first and second production cycles could be calculated with least risk. 70% of the entire sales forecast for the lower risk items were ordered to be produced. Only 30% of higher risk items were ordered to be produced in the first production cycle. The quantities which amounted to 1200 were manufactured in China and that which were close to 600, were manufactured in Hong Kong in the first production cycle.
Once the 80% of the orders were received from the retailers from the Vegas show, a clear picture of the demand forecast could be obtained, according to which the rest of the items could be manufactured either in China or Hong Kong. Referring to exhibit 1, the four products to be produced in China in the first production cycle are: Assault, Seduced, Entice and Electra. These four products have COV less than 0.2. However Gail, Daphne, ISIS, Anita, Teri, Stephanie are produced in Hong Kong for the first production cycle as they have a high level of risk associated with it.
Conclusion
Short term operational changes
o Decrease lead time by obtaining raw materials from geographically closer locations to ensure timely delivery
Long term operational changes
o Cross scaling Chinese labors which would help the company produce quality and reliable goods at a cheaper price
Amazon's European Distribution Strategy Case StudyYASSER ELSEDAWY
Amazon's supply chain challenges in Europe
Amazon.Com was launched on 16th July 1995 by Jeff Bezos. In the beginning, Amazon.com started as an online bookstore, With 25 million titles it became the earth's biggest bookstore but soon diversified. In 2008, Amazon had 8 warehouses in the U.S. and another 15 in the rest of the world. Amazon now has around 50 warehouses, 20 in the US and rest in Canada, France, Germany, Italy, UK, China, Japan. At Present the company is providing three primary customer sets; consumers, Sellers, and developers.
Amazon balances between the cost of distribution and levels of services by having efficient distribution centers and multi-tier inventory networks.
General Motor Strategic Management AnalysisRashid Javed
Best report of Strategic Management . We apply these tools strategic formulation, implantation and evaluation on general motor very effectively. we hope u will got help from this report. .
Challenges
Inaccurate forecasts of retailer demand has become a major issue at Obermeyer. The two major factors that made this task more difficult was the increase in product variety and intense competition in market. Second challenge the company had faced was to allocate production between Hong Kong and China. Although Obermeyer had 1/3 of Parka production in China for 1992, this year the organization insisted on increasing the sales to half. There was difference in quality and labor rate at China and Hong Kong which made allocation decision more difficult.
Another challenge the company faced was the larger lead time. The company had supplies of raw materials from various countries which resulted in delayed production time. Organization challenges along with competition from competitor companies were major challenges the company had faced.
Analysis
From the sales predictions that the six managers forecasted, a coefficient of variation (COV) was determined, which indicated the level of spread of the forecasted data. The COV values were broadly divided into two levels, the low risk group and the high risk group. Every value below 0.2 were considered to be among the lower risk items and all the items above COV value of 0.2 were considered to be of higher risks. Once the risk levels of each item were determined, the quantities of items to be produced in first and second production cycles could be calculated with least risk. 70% of the entire sales forecast for the lower risk items were ordered to be produced. Only 30% of higher risk items were ordered to be produced in the first production cycle. The quantities which amounted to 1200 were manufactured in China and that which were close to 600, were manufactured in Hong Kong in the first production cycle.
Once the 80% of the orders were received from the retailers from the Vegas show, a clear picture of the demand forecast could be obtained, according to which the rest of the items could be manufactured either in China or Hong Kong. Referring to exhibit 1, the four products to be produced in China in the first production cycle are: Assault, Seduced, Entice and Electra. These four products have COV less than 0.2. However Gail, Daphne, ISIS, Anita, Teri, Stephanie are produced in Hong Kong for the first production cycle as they have a high level of risk associated with it.
Conclusion
Short term operational changes
o Decrease lead time by obtaining raw materials from geographically closer locations to ensure timely delivery
Long term operational changes
o Cross scaling Chinese labors which would help the company produce quality and reliable goods at a cheaper price
Amazon's European Distribution Strategy Case StudyYASSER ELSEDAWY
Amazon's supply chain challenges in Europe
Amazon.Com was launched on 16th July 1995 by Jeff Bezos. In the beginning, Amazon.com started as an online bookstore, With 25 million titles it became the earth's biggest bookstore but soon diversified. In 2008, Amazon had 8 warehouses in the U.S. and another 15 in the rest of the world. Amazon now has around 50 warehouses, 20 in the US and rest in Canada, France, Germany, Italy, UK, China, Japan. At Present the company is providing three primary customer sets; consumers, Sellers, and developers.
Amazon balances between the cost of distribution and levels of services by having efficient distribution centers and multi-tier inventory networks.
General Motor Strategic Management AnalysisRashid Javed
Best report of Strategic Management . We apply these tools strategic formulation, implantation and evaluation on general motor very effectively. we hope u will got help from this report. .
7-Eleven is number 1 franchising in the world.
This presentation is about supply chain strategy in the 7-Eleven store.
Source: From many source and many presentation
It's a B2B and a B2C case where revenue comes from advertising and also from people. Case analysis of fashion channel with the interpretation of Demographic and attitudinal cluster analysis, problems pertaining to TFC, studying the solutions to the problems and answered to why "Dual targeting" ?
Segmentation, Targeting, positioning, differentiation, bases of segmentation, advantages of segmentation, types of targeting, Steps in Segmentation, Targeting, and Positioning
A solution for the HBR case study, We Googled You. The hiring firm Hathaway Jones, seems to face a problem as they seem to have found a perfect candidate for solving their problems, but land in a fix when some unpleasant news is digged up by the HR regarding her past. WHat should they do?
Operations Strategy for Industry: A Case StudyAyat A. Saleh
The purpose of this case study is to present a complete analysis for the operations strategy in a company called Friction Materials Company. The analysis will be conducted using Modified Hill Framework combined with the Hayes and Wheelwright. This case study was submitted as a part of the 'Operations Strategy for Industry' course in the University of Warwick, United Kingdom, 2016. For more details, you can check this blog post: https://ayatsaleh.com/2017/01/14/operations-strategy-for-industry/
7-Eleven is number 1 franchising in the world.
This presentation is about supply chain strategy in the 7-Eleven store.
Source: From many source and many presentation
It's a B2B and a B2C case where revenue comes from advertising and also from people. Case analysis of fashion channel with the interpretation of Demographic and attitudinal cluster analysis, problems pertaining to TFC, studying the solutions to the problems and answered to why "Dual targeting" ?
Segmentation, Targeting, positioning, differentiation, bases of segmentation, advantages of segmentation, types of targeting, Steps in Segmentation, Targeting, and Positioning
A solution for the HBR case study, We Googled You. The hiring firm Hathaway Jones, seems to face a problem as they seem to have found a perfect candidate for solving their problems, but land in a fix when some unpleasant news is digged up by the HR regarding her past. WHat should they do?
Operations Strategy for Industry: A Case StudyAyat A. Saleh
The purpose of this case study is to present a complete analysis for the operations strategy in a company called Friction Materials Company. The analysis will be conducted using Modified Hill Framework combined with the Hayes and Wheelwright. This case study was submitted as a part of the 'Operations Strategy for Industry' course in the University of Warwick, United Kingdom, 2016. For more details, you can check this blog post: https://ayatsaleh.com/2017/01/14/operations-strategy-for-industry/
Clarifying Strategic Positioning: An RBL ApproachThe RBL Group
As we work with clients to help them position for customer advantage, we focus on creating alignment on two levels: Enterprise Strategy and Business Strategy.
The world is changing – how about your Operations Strategy?
The world is changing rapidly – same goes for your customers and suppliers. You are required to constantly improve your operations. Is optimising your current operating model sufficient or do you need to rethink?
A great Operations Strategy is what makes the sum of all operational capabilities of your business a competitive advantage.
Does your Operations Strategy fit in relation to environmental changes or changes in future customer demand?
How to implement a strategic IT vendor management programJeff Kubacki
CIO's and their IT leadership teams should focus more time on a strategic IT vendor management program. After doing this for 8 years by conducting annual IT vendor days and implementing World Class IT principles, I decided to share what has worked and why it is important in the transition to becoming strategic business partners.
Pengantar ilmu manajeman, khususnya dalam bab strategi manajemen
Grant, R. M. (2016). Contemporary Strategy Analysis: Text and Cases. 9th Edition. UK: John Wiley & Sons.
Hitt, Michael A., Ireland, R. Duane, and Hoskisson, Robert E. (2017). Strategic Management: Concepts and Cases: Competitiveness and Globalization, 12th Edition. Boston, USA: Cengage Learning.
Robbins, Stephen P. and Coulter, Mary. 2016. Management 13th Edition. Pearson Education.
3 key influences:
The value of the product to customers
The intensity of competition
Relative bargaining power at different stages of the value chain.
OBJECTIVES
What are competitor’s current goals? Is performance meeting there goals? How are its goals likely to change?
ADOPTING BEST PRACTICES AND EMPLOYING PROCESS MANAGEMENT TOOLS
What is a Strategy? Michael Porter - Harvard Business ReviewDonny Sitompul
What is Strategy
Operational Effectiveness Is Not Strategy
Strategy Rests on Unique Activities
A Sustainable Strategic Position Requires Trade-offs
Fit Drives Both Competitive Advantage and Sustainability
Rediscovering Strategy
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Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
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Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
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In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
The key differences between the MDR and IVDR in the EUAllensmith572606
In the European Union (EU), two significant regulations have been introduced to enhance the safety and effectiveness of medical devices – the In Vitro Diagnostic Regulation (IVDR) and the Medical Device Regulation (MDR).
https://mavenprofserv.com/comparison-and-highlighting-of-the-key-differences-between-the-mdr-and-ivdr-in-the-eu/
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
8. 2-8
Why Some Organizations Fail
Too much emphasis on short-term
financial performance
Failing to take advantage of strengths
and opportunities
Neglecting operations strategy
Failing to recognize competitive threats
9. 2-9
Why Some Organizations Fail
Too much emphasis in product and
service design and not enough on
improvement
Neglecting investments in capital and
human resources
Failing to establish good internal
communications
Failing to consider customer wants and
needs
11. 2-11
Strategy
Mission
The reason for existence for an organization
Mission Statement
States the purpose of an organization
Goals
Provide detail and scope of mission
Strategies
Plans for achieving organizational goals
Tactics
The methods and actions taken to accomplish strategies
13. 2-13
Strategy Example
Rita is a high school student. She would like to have
a career in business, have a good job, and earn
enough income to live comfortably
Mission: Live a good life
Goal: Successful career, good income
Strategy: Obtain a college education
Tactics: Select a college and a major
Operations: Register, buy books, take
courses, study, graduate, get
job
Example 1
14. 2-14
Examples of Strategies
Low cost
Scale-based strategies
Specialization
Flexible operations
High quality
Service
15. 2-15
Strategy and Tactics
Distinctive Competencies
The special attributes or abilities that give an
organization a competitive edge.
Strategy Factors
Price
Quality
Time
Flexibility
Service
Location
16. 2-16
Banks, ATMsConvenienceLocation
Disneyland
Nordstroms
Superior customer
service
Service
Burger King
Supermarkets
Variety
Volume
Flexibility
Express Mail, Fedex,
One-hour photo, UPS
Rapid delivery
On-time delivery
Time
Sony TV
Lexus, Cadillac
Pepsi, Kodak, Motorola
High-performance design
or high quality Consistent
quality
Quality
U.S. first-class postage
Motel-6, Red Roof Inns
Low CostPrice
Examples of Operations Strategies
Table 2.2
45. 2-45
Operations Strategy
Operations strategy – The approach,
consistent with organization strategy,
that is used to guide the operations
function.
46. 2-46
Strategic OM Decisions
Decision Area Affects
Product and service design Costs, quality liability and environmental
Capacity Cost structure, flexibility
Process selection and layout Costs, flexibility, skill level, capacity
Work design Quality of work life, employee safety, productivity
Location Costs, visibility
Quality Ability to meet or exceed customer expectations
Inventory Costs, shortages
Maintenance Costs, equipment reliability, productivity
Scheduling Flexibility, efficiency
Supply chains Costs, quality, agility, shortages, vendor relations
Projects Costs, new products, services, or operating systems
Table 2.4
47. 2-47
Quality and Time Strategies
Quality-based
strategies
Focuses on maintaining or
improving the quality of an
organization’s products or
services
Quality at the source
Time-based strategies
Focuses on reduction of
time needed to accomplish
tasks
79. 79
Kaplan and Norton’s Generic
Strategy Map
In the Kaplan and Norton’s Generic Strategy
Map, under the Financial Perspective, the
Productivity Strategy is generally made up from
two components:
1. Improve cost structure: Lower direct and
indirect costs
2. Increase asset utilization: Reduce working
and fixed capital
80. 80
Kaplan and Norton’s Generic
Strategy Map (Continued)
In the Kaplan and Norton’s Generic Strategy
Map, under the Financial Perspective, the
Revenue Growth Strategy is generally made
up from two components:
1. Build the franchise: Develop new sources of
revenue
2. Increase customer value: Work with
existing customers to expand relationships
with company
81. 81
Kaplan and Norton’s Generic
Strategy Map (Continued)
In the Kaplan and Norton’s Generic Strategy
Map, under the Customer Perspective, there
are three ways suggested as means of
differentiating a company from others in a
marketplace:
1. Product leadership
2. Customer intimacy
3. Operational excellence
82. 82
Kaplan and Norton’s Generic
Strategy Map (Continued)
In the Kaplan and Norton’s Generic Strategy
Map, under the Learning and Growth
Perspective, there are three principle
categories of intangible assets needed for
learning:
1. Strategic competencies
2. Strategic technologies
3. Climate for action
83. 83
Operations Strategy Framework
Customer Needs
New product : Old product
Competitive
dimensions & requirements
Quality, Dependability, Speed, Flexibility, and Price
Operations & Supplier capabilities
R&D Technology Systems People Distribution
Support Platforms
Financial management Human resource management Information management
Enterprise capabilities
Operations and Supplier Capabilities
R&D Technology Systems People Distribution
84. 84
Steps in Developing a
Manufacturing Strategy
1. Segment the market according to the
product group
2. Identify product requirements, demand
patterns, and profit margins of each group
3. Determine order qualifiers and winners for
each group
4. Convert order winners into specific
performance requirements
85. 85
Service Strategy Capacity
Capabilities
Process-based
– Capacities that transforms material or information
and provide advantages on dimensions of cost and
quality
Systems-based
– Capacities that are broad-based involving the entire
operating system and provide advantages of short
lead times and customize on demand
Organization-based
– Capacities that are difficult to replicate and provide
abilities to master new technologies
86. 2-86
Productivity
Productivity
A measure of the effective use of resources,
usually expressed as the ratio of output to
input
Productivity ratios are used for
Planning workforce requirements
Scheduling equipment
Financial analysis
89. 2-89
Measures of Productivity
Table 2.4
Partial Output Output Output Output
measures Labor Machine Capital Energy
Multifactor Output Output
measures Labor + Machine Labor + Capital + Energy
Total Goods or Services Produced
measure All inputs used to produce them
90. 2-90
Units of output per kilowatt-hour
Dollar value of output per kilowatt-hour
Energy
Productivity
Units of output per dollar input
Dollar value of output per dollar input
Capital
Productivity
Units of output per machine hour
machine hour
Machine
Productivity
Units of output per labor hour
Units of output per shift
Value-added per labor hour
Labor
Productivity
Examples of Partial Productivity Measures
Table 2.5
91. 2-91
Example 3
7040 Units Produced
Cost of labor of $1,000
Cost of materials: $520
Cost of overhead: $2000
What is the multifactor productivity?
Ans. 2.0 units per dollar of input
92. 2-92
Example 3 Solution
MFP = Output
Labor + Materials + Overhead
MFP = (7040 units)
$1000 + $520 + $2000
MFP = 2.0 units per dollar of input
93. 2-93
Process Yield
Process yield is the ratio of output of good
product to input
Defective product is not included in the
output
Service example:
Ratio of cars rented to cars available to rent
95. 2-95
Standardization
Quality
Use of Internet
Computer viruses
Searching for lost or misplaced items
Scrap rates
New workers
Other Factors Affecting Productivity
96. 2-96
Safety
Shortage of IT workers
Layoffs
Labor turnover
Design of the workspace
Incentive plans that reward productivity
Other Factors Affecting Productivity
97. 2-97
Outsourcing
Higher productivity in another company is a
key reason organizations outsource work
Improving productivity may reduce the need
for outsourcing
98. 2-98
Improving Productivity
Develop productivity measures
Determine critical (bottleneck)
operations
Develop methods for productivity
improvements
Establish reasonable goals
Get management support
Measure and publicize improvements
Don’t confuse productivity with
efficiency