Operations Strategy - Frameworks

!!Operations Strategy 1 - Introduction Reconciliation of market Requirements and Operations Resources Order winning and Order Qualifying p51- DIAGRAM

• Criticisms - Other factors - l-t realtionships. Also Depends on how mrt is segmented

QDFSC p 43 Response-Range Flexibility P45 Internal/External focus of QFDCS p 49

!!Operations Strategy 2 - Reconciliation Three main themes

• Reconciliation of resources to mkt requirements
• Content ie Op strategy matrix
• Process ie Fit Sustainability Risk

The four categories of operation strategy decisions p559 Operation Strategy Matrix p63 - DIAGRAM Line of fit Mkt reqs v Capabilities p67 Trade -Offs/Paradoxes/Dilemmas p85 - DIAGRAM

• • Positioning/ Good at both / reposition
  • 3 way cost/perf/cap
  • can have domino affect
  • improve one w/o affecting the other
  • frictional and other cost
  • outsource T-O's or PT
  • trade off shape can be inverted

Emergent / Realised Strategies p85 Structure / Infrastructure - Physical issues Capcity/Sc and Process Issues PT and Org Operation Content and Operation process Q(conformance/specification) F(Range/Response) SDC - Can be Resource or Mkt Content = WHAT,Capacity/Supply/PT/Devpt Process=HOW Fit/Sustainability/Risk

Examples of:

• • Trade-offs 4 wheel drives - Hybrids
  • SWA speed cost v variety
  • Trade off changing over time VW Hyundai
  • Of doing both HP servers

Operational Focus p97 Types of Focus p101 Focus is a type of segmentation - product/ op/ loc/variety/volume

• what if mkt changes
• what if you havent chosen or identifed the right segment

Ch 2 Key Qu p73 Content and Process pf Reconciliation the QFDCS/CSPD, the performance objective to measure and FSR Ch 3 Key Qu p107 The role and key perf obj change over time - trade-offs are inevitable but can be overcome over time. Focus ops provide clarity but shifts in mkt place can leave u stranded

!!Operations Strategy 3 - Capacity Content of Operations Starts - Capacity, Supply Network, PT and Devpt p111 Capacity - Configuring(level, type, location) Managing(Timing, Magnitude,Location of Changed Cap) p115 Level LT.MT,St, K, Dem, Flex EoS Loc - Image, Predicated, Demand v Supply, cost, Politics, Clustering Type - Many/Few Timing - Lag/Lead/smooth Change Loc - s-t disruption, tme lag,cost, community. Ferdows developing the role of sites Off-shore, lead, Outpost, server Magnitude - small / larger, o/u cap, comp, balancing and bull whip. Fixed and VC Efficiency and utlization p 117 Category Killers p121 Timing of Capacity Change (moving on from Configuration) P149 Porter's Diamond of National Advantage Game Theory Ch 4 Key Qu p143 Ch 5 Key Qu p173 Examples

• Oil too little capcity when demand is high - LT decisions
• Steel/Cars too much capacity - consolidation - playing chicken. Planes in desert can be brought back into service.
• category killers - creating capacity to fulfil new demand
• disruptive - CD's

!!Operations Strategy 4 - The Supply Network Strategy Themes !!!Type of network Upstream/Focal/Downstream p181 !!!Relationships Supply Network Relationships - Vertical/Partnerships/Mkt Trading p187 Pros and cons of vertical integration

• quality, co-ordination - big plays

Themes in relationships

• trust, Joint problem solving, l-t devept, few and deep, x's of contact between org, focus, information, dedicated assets

Supply Network relationships - Dynamic (Qualitative/Quantitative) Network Mgt (Co-ordination, Differentiation, Reconfiguration) p 197 Key Qu Ch6 p209 Lean Manufacturing The Machine that Changed the World Operation Strategy Whats the Right Supply Chain Efficiency v Response p233 Supply Chain Behaviour p 215 Co-opetition/Complementors p215 Quantitative Bullwhip effect p221 Qualitative Service Supply Chains and the Performance Perception Gaps p223 - DIAGRAM Supply chain instability - due to batching / price fluctuatios and rationing Network Mgt

• Reconfigure - disintermediation - record industry
• Co-ordinate - channel alignment avoid high transaction costs, long term price supply contracts eg Car component mfg
• differentaition and fit
• alignment of obj QFDSC

Focal Company Ch 7 Key Qu p 241 Examples Dell - close to the customer - pull Compaq - strategy was not clear Exxon - manage it from extraction to retailing GE - Samsung - outsourced the wrong part of its supply chain - hollowed out

!!Operations Strategy 5 - Process Technology !!!Definition and characteristics Direct - PT that contributes to the product and service CAD Process industries exhibit long production runs volumes and low variety Service Industry - consulting - high variety, low volume Product/Process Innovation Lifecycle - DIAGRAM (mfg process lags product, semi-mfg slightly lags. services - aligned Indirect- Manages the process. ERP systems. Can overlap -provides the informational service to the cust but also supports p247 Problems associated with either end of spectrum

• cost
• training
• rigidities especially if high investment

or

• Complexities
• variability of service
• not meeting total customer mkt

Teece Resource Process Distance and potential for learning p309 - DIAGRAM Scale Automation Coupling p253 Hayes and Wheelwright Product Process Matrix p259 DIAGRAM Scalability/Analytical Content/Connectivity Product/PRocess Trade offs p273 Examples

• • Bank processing - volume
  • Sony Walkman - volume variety
  • Travel Agents - going the other way but using PT to increase variety. Printers

Ch 8 Key Qu p273 !!!Choice and Implementation !!!!Why implement

• cost - banks
• market demand - cell phones camera
• exploit new tech - Airlines - S-curve
• CI or BPR - ERP
• disintermediate - dell
• respond to customers - on-line oinvesting

!!!!Choice Feasibility Acceptability Risk p 287 F- Cap-ex, qty of respurces req, HR req's A - MISS p295, QFDSC, Finance R - Adj Costs, Changed dependencies, Future? !!!!Implementation Process/Resource distance

• learning org
• Using users
• undertand obj / limitations / pilot etc

Examples

• ERP
• Philips dedicated team - SMT's think in terms of MISS and QFDSC for each implementation

Ch 9 Key Qu p 315

!!Operations Strategy 6 - Organization Org is machine/brain/culture etc Objective of org design - deploy resources, improve perf, flex, efficient, U.M,N, Matrix Org forms p 327 Visibility - retail high. Internet low. Service repair personnel - deep Service factor Garvin p 337

• lab
• showroom
• disptacher - afetrsales support
• consultant - customer calls shop floor - technical support

!!Role of Op in Org

• Support, Implement, Driver

Upton - Macafee Path based - integral v peripheral devloper v implementor Skinner Focussed Factories and Strategy Mfg and Missing link CI Adler Winograd - Modularity, Accessibility and Inclusiveness or BPR

Push / Pull Lean/TQM/WCO p341 Parenting types p343 Merali Mcgee Mentor(Canon)/lion Tamer(Hanson)/Leader(Shell)/Trainer(unilever) p345

Ch 10 Key Qu p349

!!Operations Strategy 7 - Improvement Strategy BRR or CI Direct Develop Deploy cycle p359 Performance and Aggregation p361 Neely - Performance Measurement - Scorecard what, who, why, measure,frequency BPR Balanced Scorecard CLIF Performance Pyramid Hayes and Wheelwright's Four Stage Model p383 - DIAGRAM Sandcone Theory p371 - DIAGRAM Performance Importance Matrix p367 - DIAGRAM Experience Curve p373 Poka Yoke Implementation Difficulty / Implementation Capability Bohn 8 Stage scale of process knowledge p377 Ch 11 Key Qu p385

!!Operations Strategy 8 - Product Service Development Strategy Developing Products and Processes p393 Degree of Product/Process Change Modification, Extension, Development, Pioneer p 395 Stage Model Product/Process design p 401 Delay development can increase costs DIAGRAM (Airbus) Quality Function Deployment Matrix p403 Product Service Development Funnel p405 In-house v outsource Product / Process design Guest engineers p417 Ch 10 Key Qu p425 Teece et al Resource Process Distance Operation Strategy matrix Degree of Process Change v Degree of Product Change graph

!!Operations Strategy 9 - Formulating Strategy Fit Sustainability Risk p435 Fit - Correspondence down Coherence across and the Operation Strategy Matrix p447 Hill Framework p 453 Platts Gregory Framework p455 Demmings 14 Point Quality Programme - TQM p449 Quality, CI, SPC, Perf Stds, TopMgt Porter's Generic Strategy SWOT p 459 Quinn 6 Benefits of using Planning Tools Importance / Performance matrix Ch 10 Key Qu p465 Sustainability p469 Red Queen Effect p 475 Organizational Learning and Double Loop p 481 Path Dependences p 489 Innovators dilemma p 491 Improve or disrupt. Eventually disruptibe tech will take over Ch 14 Key Qu p495 Risk H.O.T. Risk

• Pure
• Speculative

Avoid/Mitigate-loss reduction, containment, substitute, economic (spatial, temporal)Recover

Prospect Theory p517

!!Operations Strategy 10 - International Operations Strategy Porter's Diamond of National Advantage Ferdows Making the Most Out of Foreign factories