Ch 2 Flashcards
What does a planned operations strategy consist of?
Mission, objectives, strategic decisions, and distinctive competence
-Must be tightly integrated with one another and other functions
Should be aligned with the business strategy
Operations Mission
Possible missions for operations include
low cost, fast new product introduction, fast delivery or best quality
Objectives of operations
Cost, Quality, Delivery, Flexibility, and Sustainability
-One of the objectives should be awarded as order winner, the others are order qualifiers
Operations strategic decisions indicate
How operations objectives will be achieved.
-Strategic decisions can be developed for each of the major decision areas (process, quality, systems, capacity, inventory, and supply chain)
Linked to the business strategy and other functional strategies, leading to a consistent pattern of decisions, unique capability, and competitive advantage
Operations and supply chain strategy
Distinctive competence of Operations
Should support the mission and differentiate operations from its competitors
Possible distinctive compentencies
Proprietary technology, embedded organization culture, and any innovation in operations that cannot be copied easily
In many situations, the basis of competition is not the firm, but the
Entire supply chain
Supply chain strategy is an extension of
Operations strategy that considers not only the firm, but also the strategies and capabilties of its supply chain partners
Sustainable operations should be approached by
**Critical objective and strategy
Forming cross-functional teams that includes suppliers.
Path of action for sustainable operations
Measuring and reducing the environmental, social, and economic impact in all phases of the design, operations, and distribution
Is there one best strategy for all operations and their supply chains?
No
The mission, objectives, strategic decisions, and distinctive competence, depend on
Whether a low cost or differentiation, or another strategy is being pursued by the business
The scope of operations and supply chain strategy has expanded to
A global basis, particularly for businesses pursuing a global business strategy