McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 2 Operations and Supply Strategy
<ul><li>Operations  and Supply Strategy </li></ul><ul><li>Competitive Dimensions </li></ul><ul><li>Order Qualifiers and Wi...
What is Operations and Supply Strategy? <ul><li>Operations and supply strategy  is concerned with setting broad policies a...
Competitive Dimensions <ul><li>Cost or Price </li></ul><ul><ul><li>Make the Product or Deliver the Service Cheap </li></ul...
Dealing with Trade-offs For example, if we improve customer service problem solving by cross-training personnel to deal wi...
Order Qualifiers and Winners Defined <ul><li>Order qualifiers   are the basic criteria that permit the firms products to b...
Operations and Supply Strategy Framework 2-
What is Productivity? Defined <ul><li>Productivity  is a common measure on how well resources are being used.  In the broa...
Total Measure Productivity <ul><li>Total Measure Productivity =  Outputs   Inputs </li></ul><ul><li>  </li></ul>  or =  Go...
Partial Measure Productivity <ul><li>Partial measures of productivity =  </li></ul><ul><li>Output  or  Output  or  Output ...
Multifactor Measure Productivity <ul><li>Multifactor measures of productivity =  </li></ul><ul><li>Output    </li></ul><ul...
Example of Productivity Measurement <ul><li>You have just determined that your service employees have used a total of 2400...
Question Bowl <ul><li>An operations and supply strategy is concerned with which of the following? </li></ul><ul><li>Settin...
Question Bowl <ul><li>Typically a strategy breaks down into what major components? </li></ul><ul><li>Operations effectiven...
Question Bowl <ul><li>A criterion that differentiates the products and services of one firm from another can be which of t...
Question Bowl <ul><li>A travel agency processed 240 customers on Day 1 with a staff of 12, and 360 customers the on Day 2 ...
End of Chapter 2 2-
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Chap02

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It,s from Operation and supply Management 12 th edition by RICHARD,RAVI

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  • Chap02

    1. 1. McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
    2. 2. Chapter 2 Operations and Supply Strategy
    3. 3. <ul><li>Operations and Supply Strategy </li></ul><ul><li>Competitive Dimensions </li></ul><ul><li>Order Qualifiers and Winners </li></ul><ul><li>Strategy Design Process </li></ul><ul><li>A Framework for Manufacturing Strategy </li></ul><ul><li>Service Strategy Capacity Capabilities </li></ul><ul><li>Productivity Measures </li></ul>OBJECTIVES 2-
    4. 4. What is Operations and Supply Strategy? <ul><li>Operations and supply strategy is concerned with setting broad policies and plan for using the resources of a firm to best support its long-term competitive strategy. </li></ul>2-
    5. 5. Competitive Dimensions <ul><li>Cost or Price </li></ul><ul><ul><li>Make the Product or Deliver the Service Cheap </li></ul></ul><ul><li>Quality </li></ul><ul><ul><li>Make a Great Product or Deliver a Great Service </li></ul></ul><ul><li>Delivery Speed </li></ul><ul><ul><li>Make the Product or Deliver the Service Quickly </li></ul></ul><ul><li>Delivery Reliability </li></ul><ul><ul><li>Deliver It When Promised </li></ul></ul><ul><li>Coping with Changes in Demand </li></ul><ul><ul><li>Change Its Volume </li></ul></ul><ul><li>Flexibility and New Product Introduction Speed </li></ul><ul><ul><li>Change It </li></ul></ul><ul><li>Other Product-Specific Criteria </li></ul><ul><ul><li>Support It </li></ul></ul>2-
    6. 6. Dealing with Trade-offs For example, if we improve customer service problem solving by cross-training personnel to deal with a wider-range of problems, they may become less efficient at dealing with commonly occurring problems. For example, if we reduce costs by reducing product quality inspections, we might reduce product quality. 2- Cost Quality Delivery Flexibility
    7. 7. Order Qualifiers and Winners Defined <ul><li>Order qualifiers are the basic criteria that permit the firms products to be considered as candidates for purchase by customers </li></ul><ul><li>Order winners are the criteria that differentiates the products and services of one firm from another </li></ul>2-
    8. 8. Operations and Supply Strategy Framework 2-
    9. 9. What is Productivity? Defined <ul><li>Productivity is a common measure on how well resources are being used. In the broadest sense, it can be defined as the following ratio: </li></ul><ul><li> Outputs </li></ul><ul><li> Inputs </li></ul>2-
    10. 10. Total Measure Productivity <ul><li>Total Measure Productivity = Outputs Inputs </li></ul><ul><li> </li></ul> or = Goods and services produced All resources used 2-
    11. 11. Partial Measure Productivity <ul><li>Partial measures of productivity = </li></ul><ul><li>Output or Output or Output or Output </li></ul><ul><ul><li>Labor Capital Materials Energy </li></ul></ul>2-
    12. 12. Multifactor Measure Productivity <ul><li>Multifactor measures of productivity = </li></ul><ul><li>Output </li></ul><ul><ul><li>Labor + Capital + Energy </li></ul></ul><ul><ul><li> or </li></ul></ul><ul><li>Output </li></ul><ul><ul><li>Labor + Capital + Materials </li></ul></ul>2-
    13. 13. Example of Productivity Measurement <ul><li>You have just determined that your service employees have used a total of 2400 hours of labor this week to process 560 insurance forms. Last week the same crew used only 2000 hours of labor to process 480 forms. </li></ul><ul><li>Which productivity measure should be used? </li></ul><ul><li>Answer: Could be classified as a Total Measure or Partial Measure. </li></ul><ul><li>Is productivity increasing or decreasing? </li></ul><ul><li>Answer: Last week’s productivity = 480/2000 = 0.24, and this week’s productivity is = 560/2400 = 0.23. So, productivity is decreasing slightly. </li></ul>2-
    14. 14. Question Bowl <ul><li>An operations and supply strategy is concerned with which of the following? </li></ul><ul><li>Setting specific policies and plans </li></ul><ul><li>Short-term competitive strategies </li></ul><ul><li>Coordination of operational goals </li></ul><ul><li>All of the above </li></ul><ul><li>None of the above </li></ul>Answer: c. Coordination of operational goals 2-
    15. 15. Question Bowl <ul><li>Typically a strategy breaks down into what major components? </li></ul><ul><li>Operations effectiveness </li></ul><ul><li>Customer management </li></ul><ul><li>Production innovation </li></ul><ul><li>All of the above </li></ul><ul><li>None of the above </li></ul>Answer: d. All of the above 2-
    16. 16. Question Bowl <ul><li>A criterion that differentiates the products and services of one firm from another can be which of the following? </li></ul><ul><li>An order qualifier </li></ul><ul><li>An order winner </li></ul><ul><li>PWP </li></ul><ul><li>KPI </li></ul><ul><li>None of the above </li></ul>Answer: b. An order winner 2-
    17. 17. Question Bowl <ul><li>A travel agency processed 240 customers on Day 1 with a staff of 12, and 360 customers the on Day 2 with a staff of 15. What can be said about the productivity shift from Day 1 to Day 2? </li></ul><ul><li>An increase in productivity from Day 1 to Day 2 </li></ul><ul><li>A decrease in productivity from Day 1 to Day 2 </li></ul><ul><li>The same productivity from Day 1 to Day 2 </li></ul><ul><li>Can not be computed from data above </li></ul><ul><li>None of the above </li></ul>Answer: a. An increase in productivity from Day 1 to Day 2(Day 1 productivity = 240/12=20 Day 2 productivity = 360/15=24) 2-
    18. 18. End of Chapter 2 2-

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