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Principles of Operations Management, 5e, and Operations

Management, 7e

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Operations

ManagementOperations Strategy in a Global

Environment

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Learning Objectives

-.en yo complete t.is c.apter, yo s.old"e a"le to 0

Identify or Define:

♦ Mission♦ Strategy♦ Ten Decisions of OM♦ Multinational Corporations

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Developing Missions an

Strategies

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Mission

♦ Mission + w.ere are yo

going♦

Organization3s prpose for "eing♦ Pro'ides "ondaries 4 focs

♦ nswers 6-.at do we pro'ide

society3

© 1995 Corel Corp.

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Mission'Strategy

♦Mission + w.ere yo are going

♦&trategy + .ow yo are going to get t.ere8 an

action plan

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Strategy

♦ ction plan to ac.ie'e

mission

♦ &.ows .ow mission will "eac.ie'ed

♦ 9ompany .as a "siness

strategy

♦ :nctional areas .a'e

strategies© 1995 Corel Corp.

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Strategy (rocess

MarketingDecisions

OperationsDecisions

Fin./Acct.Decisions

CompanyMission

Business

Strategy

Functional AreaFunctional Area

Strategies

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Strategies for Competitive

)vantage

♦ response

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Competing on Differentiation

%ni?eness can go "eyond "ot. t.e p.ysical

c.aracteristics and ser'ice attri"tes to

encompass e'eryt.ing t.at impacts cstomer3sperception of 'ale

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Competing on Cost

Pro'ide t.e ma@imm 'ale as percei'ed "y

cstomer

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Competing on #esponse

♦:le@i"ility

♦Relia"ility

♦Aimeliness

Re?ires instittionalization wit.in t.e firm of t.ea"ility to respond

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OM*s Contribution to Strategy

#esponse

+$aster,

uality

(rouct

(rocess

Location

Layout

.uman #esource

Supply C!ain

&nventory

Sc!euling

Maintenance

.(*s ability to follo" t!e printer mar/et

Differentiation

+0etter,

Cost

leaers!ip+C!eaper,

Sout!"est )irlines 1o-frills service

Sony*s constant innovation of ne" proucts

(i22a .ut*s five-minute guarantee at lunc!time

$eeral E3press*s 4absolutely5 positively on time6

Motorola*s automotive proucts ignition systems

Motorola*s pagers

&0M*s after-sale service on mainframe computers

$ielity Security*s broa line of mutual funs

$LE7&0&L&T8

Design

Volume

LO% COST

DEL&9E#8

Speed 

Dependability 

)L&T8

Conformance

Performance

)$TE#-S)LE SE#9&CE

0#O)D (#ODCT L&1E

Operations

Decisions E3amplesSpecific

Strategy seCompetitive)vantage

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(rocess Design

  Bow Moderate Hig.

Colme

Hig.

Moderate

Bow

    C

   a   r    i   e   t   y   o    f    P   r   o    d   /   c   t   s

Process+focsed

)o" &.opsDPrint s.op, emergency

room , mac.ine s.op,

fine diningRepetiti'e DmodlarE

focs

ssem"ly lineD9ars, appliances, ACs,

 fast+food restarantsE Prodct+focsed

9ontinosDsteel, "eer, paper,

"read, instittional

>itc.enE

Mass 9stomization

9stomization at .ig.

Colme

D

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(reconitions -

To &mplement a StrategyOne mst nderstand0

♦ &trengt.s 4 wea>nesses of competitors and new

entrants into t.e mar>et

♦ 9rrent and prospecti'e en'ironmental, legal, andeconomic isses

♦ A.e notion of prodct life cycle

♦ Resorces a'aila"le wit. t.e firm and wit.in t.e OM

fnction

♦ #ntegration of OM strategy wit. company strategy and

 wit. ot.er fnctions$

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&mpetus for Strategy C!ange

♦9.anges in t.e organization

♦&tages in t.e prodct life cycle

♦9.anges in t.e en'ironment

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Stages in t!e (rouct Life Cycle

#ntrodction

  Frowt.

  Matrity

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Strategy an &ssues During a(rouct*s Life

St t D l t

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Strategy Development an

&mplementation

♦ #dentify critical sccess factors

♦Gild and staff t.e organization

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S%OT )nalysis (rocess

♦n'ironmental nalysis

♦

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S%OT )nalysis to Strategy$ormulation

Strategy

Mission

!ternal

Opportunities

"nternal

Strengt#s

"nternal

$eaknesses

!ternal

%#reatsCompetiti&e

 A'&antage

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.o" &t %or/s

9ompany

Mission

Gsiness

&trategy

:nctional rea

&trategies

Mar>eting

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$our &nternational OperationsStrategies

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Global Strategy

Operating decisions are centralized and

.ead?arters coordinates t.e standardization

and learning "etween facilities

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