Scribd
Upload
20 views13 pages

CH 2 Operations Strategy

Uploaded by

Bhavi Agrawal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
20 views13 pages

CH 2 Operations Strategy

Uploaded by

Bhavi Agrawal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 13

Chapter 2

Operations and Supply Strategy


2-2

OBJECTIVES
Operations and Supply Strategy

Competitive Dimensions

Order Qualifiers and Winners

Strategy Design Process

A Framework for Manufacturing Strategy

Service Strategy Capacity Capabilities

Productivity Measures
2-3

WHAT IS OPERATIONS AND SUPPLY STRATEGY?

Operations and supply strategy is concerned with setting broad policies and plan
for using the resources of a firm to best support its long-term competitive
strategy.
2-4

COMPETITIVE DIMENSIONS

Cost or Price
 Make the Product or Deliver the Service Cheap

Quality
 Make a Great Product or Deliver a Great Service

Delivery Speed
 Make the Product or Deliver the Service Quickly

Delivery Reliability
 Deliver It When Promised

Coping with Changes in Demand


 Change Its Volume

Flexibility and New Product Introduction Speed


 Change It

Other Product-Specific Criteria


 Support It
2-5

DEALING WITH TRADE-OFFS

For
Forexample,
example, ifif we
wereduce
reducecosts
costsbybyreducing
reducingproduct
product
quality
qualityinspections,
inspections, we
wemight
might reduce
reduceproduct
product quality.
quality.
For
Forexample,
example, ifif we
we
improve
improvecustomer
customer
service
serviceproblem
problem solving
solving Cost
by
bycross-training
cross-training
personnel
personnel to
todeal
deal with
withaa Flexibility Delivery
wider-range
wider-rangeofof
problems,
problems, they
theymaymay
become Quality
becomeless
lessefficient
efficientatat
dealing
dealingwith
withcommonly
commonly
occurring
occurringproblems.
problems.
2-6

ORDER QUALIFIERS AND WINNERS


DEFINED

Order qualifiers are the basic criteria that permit the firms products to be considered
as candidates for purchase by customers

Order winners are the criteria that differentiates the products and services of one firm
from another
2-7

OPERATIONS AND SUPPLY STRATEGY FRAMEWORK


2-8

WHAT IS PRODUCTIVITY?
DEFINED

Productivity is a common measure on how well resources are being


used. In the broadest sense, it can be defined as the following ratio:

Outputs
Inputs
2-9

TOTAL MEASURE PRODUCTIVITY

Total Measure Productivity = Outputs


Inputs

or
= Goods and services produced
All resources used
2-10

PARTIAL MEASURE PRODUCTIVITY

Partial measures of productivity =

Output or Output or Output or Output


Labor Capital Materials Energy
2-11

MULTIFACTOR MEASURE PRODUCTIVITY

Multifactor measures of productivity =

Output
Labor + Capital + Energy

or

Output
Labor + Capital + Materials
2-12

EXAMPLE OF PRODUCTIVITY MEASUREMENT

You have just determined that your service employees have used a
total of 2400 hours of labor this week to process 560 insurance forms.
Last week the same crew used only 2000 hours of labor to process 480
forms.
Which productivity measure should be used?
Answer: Could be classified as a Total Measure or Partial Measure.
Is productivity increasing or decreasing?
Answer: Last week’s productivity = 480/2000 = 0.24, and this week’s
productivity is = 560/2400 = 0.23. So, productivity is decreasing
slightly.
2-13

QUESTION BOWL

A travel agency processed 240 customers on Day 1 with a staff of 12, and 360
customers the on Day 2 with a staff of 15. What can be said about the
productivity shift from Day 1 to Day 2?
a. An increase in productivity from Day 1 to Day 2
b. A decrease in productivity from Day 1 to Day 2
c. The same productivity from Day 1 to Day 2
d. Can not be computed from data above
e. None of the above

Answer: a. An increase in productivity from Day 1 to Day 2(Day 1


productivity = 240/12=20
Day 2 productivity = 360/15=24)

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy