2 - Operations Strategy

Somethingthatoperationsdoesbetterthan anyoneelse 2 7

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Unformatted text preview: etter than any competing organization that adds value for the customer.” •“Something that operations does better than anyone else.” 2-7 2- Operations Strategic Objectives Cost Quality Delivery Delivery – Time – Reliability Flexibility—schedule or product change How does a firm use them to gain a competitive How advantage, and how do they trade-off? advantage, 2-8 2- Linking Operations to Business Strategies Business strategy alternatives – Product imitator Operations must focus on keeping costs low. Operations – Product innovator Operations must maintain flexibility in processes, Operations labor and suppliers. Order qualifiers and Winners Order – – 2-9 2- Qualifiers: why you consider the product Winners: why you choose the product Linking Operations to Business Strategies Business strategy alternatives – Product imitator Order winner = price (keep costs low) Order qualifiers = flexibility, quality, delivery) Order – Product innovator Order winner = flexibility (rapid introduction of Order new products) new Order qualifiers = cost, delivery, quality Order 2-10...
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