ops mgt 2_Operations Strategy_Spring 09-2

ops mgt 2_Operations Strategy_Spring 09-2 - Operations...

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Click to edit Master subtitle style Operations Strategy
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What is Operations Strategy ? Operations Strategy is concerned with setting broad policies and plans for using firm resources to best support long-term competitive strategy. Operations strategy needs to support overall corporate strategy. Corporate Strategy Operations Strategy Finance Strategy Marketing Strategy
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Operations Strategy Example Strategy Process Customer Needs Corporate Strategy Operations Strategy Decisions on Processes and Infrastructure More Product Increase Org. Size Increase Production Capacity Build New Factory
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Motivation Southwest Airlines overall corporate strategy is to provide an efficient and effective form of transportation (moving people from one place to another) What type of issues should Southwest consider when developing an operations strategy? The answer depends on how Southwest plans on competing…
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Competitive Dimensions 1. Cost 2. 3. Delivery Speed 4. Delivery Reliability 5. Demand Management 6. Flexibility 7. Innovation Make it cheap Make it good Make it fast Deliver as promised Handle Changes in Demand Make more than one type First mover advantage Some Examples…
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Examples of Competitive Dimensions Demand Management Demand for finished good Production process Finished goods Month Demand Jan 1300 Feb 1260 Mar 1350 Apr 1280 May 1210 Jun ? Jul ? How much should we produce/hold for June and July?
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Examples of Competitive Dimensions Flexibility B Demand for finished good B Production process B Finished goods A Demand for finished good A Production process A Finished goods A or B Demand for finished good A Flexible Production process Finished goods Demand for finished good B Which of these systems is better?
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Competitive Dimensions All of the competitive dimensions are important… why not try to excel along every one?
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This note was uploaded on 01/25/2011 for the course MGT 3501 taught by Professor Chang during the Spring '10 term at Georgia Institute of Technology.

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ops mgt 2_Operations Strategy_Spring 09-2 - Operations...

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