| A | B |
|---|
| operations strategy | concerned with setting broad policies and plans for using the resources of a firm to best support its long-term competitive strategy. long-term process that must foster inevitable change. involves decisions that relate to the design of a process(selection of tech, sizing the process, inventory in the process, locating the process) and the infastructure(logic of planning and control systems, quality assurance) needed to support it. Coordinates operational goals with those of the larger organization |
| competitive dimensions | cost or price, quality, delivery speed, delivery reliability, coping with demand(over the long-run), flexibility(wide variety of products) and new product intro speed |
| cost or price "make the product or deliver the service cheap" | firm must be the low cost producer. customer cannot distinquish the product between firms. market segment very large. high competition and high failure rate. One low cost producer usually esablishes selling price |
| quality "make great product or deliver great service" | two characteristics Design quality-related to the set of features the good contains and directly to the design. and Process quality- relates directly to the reliability of the product. goals is to produce defect-free product or services. |
| other criteria- "support it" | technical liaison and support (tech assistance), Meeting a launch date, Supplier after-sale support(replacement parts, etc), Other(colors available, size, weight) |
| notion of trade-offs | an operation cannot excel simulatneously on all competitive dimensions. focus on which parameters are critical |
| plant-within-a plant | firms with large manufactoring facilities. Concept in which different locations within a facility are allocated to different product lines, each w/ own operations strategy. even workers seperated |
| straddling | occurs when a company seeks to match the benefits of a successful position while maintaining its existing position. adds new features onto the activities it already performs. (continential adding lite service and keeping full service flights) |
| order qualifier | the basic criteria that permit the firms products to be considered as candidates for purchase by customers. Ex. a brand name car |
| order winner | the criteria that differentiates the products and services of one firm from another. may be the cost of the product, product quality and reliability. Ex. repair services, Warranty, roadside assist, leasese |
| Main objectives of manufactoring strategy developement | 1) to translate required competitive dimensions into specific performance requirements for operations. 2) make the plans neccessary to ensure that operations capabilities are sufficient to accomplish them. |
| steps in developing a manufactoring strategy | 1) segment the market according to the product group. 2) Identify the product requirements, demand patterns, and profit margins of each group. 3)determine the order winners/qualifiers for each group. 4)convert order winners into specific performance requirements. |
| service strategy capacity capabilities | Process based- capacities that transforms materials or info and provide advantages on dimensions of cost and quality. Systems based- capacities that are broad based involving the entire operating system and provide advantages of short lead times and customize on demand. Organization Based- capacities difficult to replicate and provide abilities to master new technologies. |
| key performance idicators | a set of measures that help managers evaluate a company's economic performance and spot the need for changes in operations. include financial measures such as day's cash on hand, and nonfinancial metrics such as average time to respond to service calls, lead time, etc. |
| productivity | common measure of how well a country, industry, or business unit is using its resources. =Outputs/Inputs. want to make the ratio of of outputs to inputs as large as possible. Its a relative measure. |
| productivity comparisons | can be made in 2 ways: 1)firm can compare itself with similar operations w/in the industry. 2)measure productivity over time within the same operation. |
| partial productivity measure | if concerned with the ratio of outputs to a single input |
| multifactor productivity measure | if want to look at the ratio of output to a group of inputs |
| total factor measure of productivity | if want to express the ratio of all outputs to all inputs. |
