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Handouts Operations Strategy

A business will develop its mission, identify core competencies, and do environmental scanning to form its business strategy. An operations strategy is then developed to specify how the operations function will support that business strategy through competitive priorities like cost, quality, time, and flexibility.

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Arvee Joice Clemente
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102 views

Handouts Operations Strategy

A business will develop its mission, identify core competencies, and do environmental scanning to form its business strategy. An operations strategy is then developed to specify how the operations function will support that business strategy through competitive priorities like cost, quality, time, and flexibility.

Uploaded by

Arvee Joice Clemente
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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NATIONAL COLLEGE OF BUSINESS AND ARTS

Master in Business Administration


Fairview, Quezon City

SUBJECT : PRODUCTION/OPERATIONS MANAGEMENT


PROFESSOR : Dr. Maximo Artieda
REPORTER : Arvee Joice L. Clemente
TOPIC : Operations Strategy

Operations Strategy:
Is the total pattern of decisions with shape the long term capabilities of any type of operations
and their contribution to the overall strategy.

Role of Operations Strategy:


 Provide a plan that makes best use of resources which specifies the policies and plans for
using organizational resources.
 Supports business strategy

BUSINESS/FUNCTIONAL STRATEGY

Business Strategy- Defines long range plan for company


Marketing Strategy-marketing plans to support business plan
Operations Strategy- Develops a plan for the operations function to support business strategy
Finance Strategy- Develops financial plan to support business plan.

DEVELOPING BUSINESS STRATEGY

MISSION
EXAMPLE: DELL COMPUTER “TO BE THE MOST SUCCESSFUL COMPUTER COMPANY IN THE
WORLD”

CORE COMPETENCIES
EXAMPLE: STRENGTH OF WORKERS, MODERN FACILITIES, BEST TECHNOLOGIES

ENVIRONMENTAL SCANNING
EXAMPLE: POLITICAL, SOCIAL, ECONOMIC, MARKET PLACE AND GLOBAL TRENDS
DEVELOPING THE OPERATIONS STRATEGY
• A PLAN FOR THE DESIGN AND MANAGEMENT OF OPERATIONS FUNCTIONS
• DEVELOPED AFTER THE BUSINESS STRATEGY
• FOCUSES ON THE SPECIFIC CAPABILITIES WHICH GIVE IT A COMPETITIVE EDGE-COMPETITIVE
PRIORITIES

COMPETITIVE PRIORITIES

Competing on COST?
Offering a product at a low price relative to competition
 Typically high volume products
 Often limit product range and offer little customization
 Low cost does not mean low quality
Competing on QUALITY?
2 major dimensions
 High Performance design
-superior features. High durability and excellent customer service
 Product and service consistency
-meets design specifications
Competing on TIME?
One of the most important competition priorities
Time related issues involve
 Rapid delivery: focused on shorter time between order placement and delivery
 On-Time delivery: Deliver product exactly when needed every time

Competing on FLEXIBILITY?
Company must accommodate change by being flexible
 Production flexibility:
-easily switch production from one item to another
-easily customize product/service to meet specific requirements of a customer
 Volume flexibility
-Ability to ramp production up and down to match market demands.
LINKAGE BETWEEN

CORPORATE STRATEGY-Business to be in

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