Operating models

Question 1

Operations strategy

Answer 1

total pattern of decisions which shape the long-term capabilities of any type of operations and their contributions to the overall strategy

Question 2

What are operations?

Answer 2

subset of the operating model: processes, locations, suppliers, not just production of physical goods

Question 3

What are total patterns of decisions?

Answer 3

decisions needed to be internally consistent

Question 4

What are long term capabilities?

Answer 4

unique collection of resources, assets+skills, embedded in a culture that allows it to win

Question 5

Contribution to overall strategy

Answer 5

everything off base if it does not achieve competitive advantage

Question 6

What are operations strategy decisions?

Answer 6

1) Determining what my processes need to be good at

2) Making sure the firm has the right kind of capacity in the right place, doing the right jobs

Question 7

Operational competitive priorities:

Answer 7

the things processes need to be good at:

• cost
• conformance quality
• high performance design quality
• customization
• volume flexibility
• mix flexibility
• delivery speed
• delivery reliability
• new product development speed
• empathy, tangibles, assurance

Question 8

Process

Answer 8

sequence of steps and activities that transform inputs into outputs by consuming resources, 2 ways to define

Question 9

Core Processes

Answer 9

top 4-6 things than an org must do to execute their business model

Question 10

Primary and Support Processes

Answer 10

Primary:

1) Value adding processes
2) Processes that increase WTP
3) Processes that come to mind when you ask “what does the company do”
* if primary processes about delivering value to customers, support are about keeping the business running