Lecture 2 Flashcards
Three levels of operations performance
- Societal level - operations sustainablity
- Strategic level - operations strategic impact
- Operational level - operations performance objectives
Five performance objectives of operations
- Quality > Being right
- Speed > Being fast
- Dependability > Being on time
- Flexibility > Being able to change
- Cost > Being productive
All leads to competetiveness
External and internal benefits of quality
External: Improves product/avoids customer complaints
Internal: Reduces cost, increases speed, increases dependability
Speed external and internal benefits
External: higher customer satisfaction
Internal: reduced cost, increased dependability
Dependability external and internal benefits
External: Avoids customer complains and helps retention
Internal: Reduces extra costs, increases speed
Flexibility external and internal benefits
External: Ability to serve wide customer segments, avoid customer complains and lost sales due unavailability
Internal: Reduces cost, increases speed and dependability
4 perspectives of operations strategy
-Top-down (managament leads and worker figures out how)
-Bottom-up (using scraps and what you have to create a plan)
-Outside-in (following market demand)
-Inside-out (exploiting what youre good at)
Hayes and Wheelwright 4 Stage Model of Operations Contribution
- bare minimum
- comparing with others
- how to make it awesome
- being the best
Stage 1: Internal neutrality (Holding company back from competing effectively)
Stage 2: External neutrality (Operations function begins comparing itself with similar organizations in the outside market)
Stage 3: Internally supportive (Gaining a clear view of the company’s competetive/strategic goals and supporting it by developing appropriate operations resources
Stage4: Externally supportive (Operations are long-term, it forecasts likely changes in markets and supply, deveops operations-based capabilities used to compete in future market conditions)
