Quản trị kinh doanh - Chapter 2: Operations and supply chain strategy

LO2-1 Describe link between operations and strategic planning

LO2-2 Describe the links between the essential elements of operations strategy

LO2-3 Describe customer desired outcomes

LO2-4 Explain product- and process- priorities and links to competitive advantage

LO2-5 Explain the use of various performance metrics


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Copyright © 2014 McGraw-Hill Higher Education. All rights reserved.CHAPTER 2Operations and Supply Chain StrategyMcGraw-Hill/IrwinLearning ObjectivesLO2-1 Describe link between operations and strategic planningLO2-2 Describe the links between the essential elements of operations strategyLO2-3 Describe customer desired outcomesLO2-4 Explain product- and process- priorities and links to competitive advantageLO2-5 Explain the use of various performance metrics2–2Strategic Planning: Operations Strategy Defined2–3Operations Strategy: A set of competitive priorities coupled with supply chain structural and infrastructural design choices intended to create capabilities that support a set of value propositions targeted to address the needs of critical customersLO2-1Levels of Strategic Planning2–4EnvironmentCorporate CultureCorporate StrategyBusiness StrategiesSBUSBUSBUOperations StrategyFinance, Marketing, etc. StrategiesStrategic QuestionsWhat business(es) should we be in?How do we compete?How do we best support the SBU strategy? Structure InfrastructureFigure 2-1LO2-2Levels of Strategic Planning: Corporate StrategyCorporate Strategy: overall mission and target businesses Long time horizonOverall values, direction and goalsAcquisitions and divestituresPerformance metricsRisk management2–5LO2-2Strategic Business Unit (SBU): semi-independent organization for different products or marketsIdentification of customer or market segmentsAppropriate competitive prioritiesConstrained by corporate strategyMore detailed Shorter time horizon2–6Levels of Strategic Planning: Strategic Business UnitLO2-2Functional strategy: determines how functions support business unit strategiesManagement of critical resourcesKey metricsIdentification of capabilitiesCoordination of activities2–7Levels of Strategic Planning: Functional StrategyLO2-2Developing an Operations StrategyCritical Customer: critical to firm’s success and receives firm’s focus Value Proposition: tangible and intangibles that customers expect from a firm Capabilities: what a firm does well, defines types of problems a firm can proficiently address2–8Figure 2-2LO2-3Product-Related Competitive PrioritiesHow customer’s problem is ‘solved’Quality: fitness for consumption in terms of meeting customer needs & desiresTimeliness: delivery or availability when customer wantsCost: expenses incurred is acquiring or using the product2–9LO2-4Competitive Priorities: QualityQuality: How ‘fit’ is your product according to your customers needs?PerformanceFeatures Conformance Reliability Durability Aesthetics Service/support Perceived quality 2–10LO2-4Competitive Priorities: TimelinessTimeliness: Is your product delivered to your customers when they want it?ReliabilitySpeedAvailability2–11LO2-4Competitive Priorities: CostCost: How much does it cost to acquire and use your product?PurchaseTransactionMaintenance/repairOperatingSalvage/disposal2–12LO2-4Capabilities DefinedCapabilities: unique and superior abilities based upon the firm’s routines, skills and processesKey areas for capability-building investment and development efforts:ProcessesPlanning systemsTechnologyPeople and cultureSupply chain relations2–13LO2-4Strategic Areas in Operations Management: StructureDecision DomainOM Issues ConsideredOther Functional GroupsCapacityAmount, timing and typeFinance, MarketingFacilitiesSize, location, specializationFinance, MarketingTechnologyHardware, software, ISFinance, Engineering, IT, HRSupply Chain NetworkSupply networkCustomer networkFinance, Engineering, Marketing, Sales2–14From Table 2-3LO2-4Strategic Areas in Operations Management: InfrastructureDecision DomainOM Issues ConsideredOther Functional GroupsWorkforceSkills, training, policies, etc.Human ResourcesProduction Planning and ControlProcedures, workflow, costs, controls, metrics, etc.Finance, Human ResourcesProduct/Process InnovationImprovements, NPI, intellectual property, etc.Engineering, Human ResourcesOrganization & ManagementCentralization, hierarchy, relationships, metrics, etc.Human Resources, Marketing2–15From Table 2-3LO2-4Strategic Profit ModelLO2-52–16OM and SC Strategy SummaryStrategic planning happens at multiple levelsStrategic planning begins with the customerOM strategy brings together: critical customers, value propositions and operations capabilitiesCompetitive priorities address product and process issuesFuture capabilities depend on existing core competenciesStrategy involves multiple functions and SC partnersMust be fit between the elements of #3 aboveStrategic assessment tools are needed2–17

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