Chapter 2

Question 1

What are the 2 notions of performance

Answer 1

1) performance as an outcome/result
2) performance as a process

Question 2

What are the 3 levels of operations performance?

Answer 2

1) Societal level - operations sustainability
2) Strategic level - operations strategic impact
3) Operationanl level - operations performance objectives

Question 3

What are the components of societal performance?

Answer 3

• People (customers, employees, society)
• Planet (recycling, energy, pollution, waste, process failure)
• Profit (cost, revenue, effectiveness of investment, risk, resilience, future capabilities)

Question 4

What aspects does the strategic performance include?

Answer 4

• time delay to see effects of strategy
• operations affect cost
• operations affect revenue
• operations affect required investments
• operations affect risk of failure
• operations affect ability to build capability (innovations is based on it)

Question 5

What aspects are considered in the oprational performance?

Answer 5

1) quality - specification (functionality vs conformance)
2) speed
3) dependability
4) flexibility - 2 dimensions & types
4.1) range - different stakes
4.2) response - ease with which move
4.3) types: product/service; mix; volume;
delivery
5) cost - operational- & capital expenditure, working capital

Question 6

What are the internal effects of performance objectives?

Answer 6

1) quality - error-free processes
2) speed - faster throughput time
3) dependability - more internal stability
4) flexibility - better response to unpredicted events
5) cost - productive processes
internal effects are often interdependent

Question 7

What are external effects of performance objectives?

Answer 7

1) quality - reliable products and services
2) speed - short delivery time
3) dependability - on-time delivery
4) flexibility - volume adjustments
5) cost - low prices

Question 8

Explain the difference between order-winners, qualifiers and delights.

Answer 8

In the matrix achieved performance & competitive benefits
- order-winners: direct relation between benefit and performance
- qualifiers - certain threshold and afterwards no additional benefits
- delights - starting at a neutral level and constantly gaining more benefits
can change over time!

Question 9

What are the 3 types of trade offs?

Answer 9

1) original perspective - have to sacrifice one dimension
2) operational excellence perspective - no notion of trade-offs
3) improvement perspectives - trade-offs in short-term but long-term improving whole performance

Question 10

What is operational focus?

Answer 10

dedicating each operation to limited, concise and manageable set of products/technologies/volumes/markets

Question 11

What are approaches to operational focus?

Answer 11

• performance objective focus
• product/service specification focus
• geographic focus
• variety focus
• volume
• process requirements

Question 12

What are benefits and risks of focus?

Answer 12

Benefits: clarity of objectives, developing appropriate resources, enhanced learning and improvement
Risks: shift in market place, few economies of scale, structural vulnerability