Lecture 2 - Operations Strategy Flashcards
Operations Strategy Definition
“Operations strategy concerns the pattern of strategic decisions and actions that set the role, objectives and activities of the operation…operations strategy has content [specific decisions] and process [procedure used]” (Slack and Brandon-Jones (2018: 64)
3 Levels of Operations Analysis
Societal - Environmental, Social, Economic
Strategic - Cost, Revenue, Risk, Investment, Capability
Operational - Speed, Dependability, Cost, Quality, Flexibility
Operational Analysis: Societal
Tripple Bottom Line People
- Social Profit
- Economic Planet
- Environmental
When all of these are done, ‘sustainability’ is reached. Successful in the long run
Operational Analysis: Strategic
Cost - Efficient Operations
Revenue - Satisfied Customers
Investment - ROI
Risk - of Operational Failure
Capability Building - Learning and improvement
Operational Analysis: Operational
Operational Objectives are: Cost, Dependability, Flexibility, Quality, Speed
• Aspects of each generic objective will vary between different processes/operations • Priorities will vary between different processes/operations • Different stakeholders may have different expectations
3 Main Types of Operational Strategy perspectives
Concerning - Operations
Operations Resources - What operations resources can do (process, people, technology, information)
Top Down - What the business wants operations to do
Bottom Up - What day-to-day experience suggests the operations should do
Market requirement - What the market position requires operations to do
Delivery Systems Definition
Delivery systems comprise interdependent, interacting elements (e.g. process, people, technology and information) combined for the delivery of goods and services
Alignment between objectives and system components are needed
Control mechanisms to achieve system objectives
Delivery systems are open systems and so cna interact with elements beyond the systems boundaries
Operating Systems - PPTI Framework
People
Processes
Technology
Information
