Slide 1Importance of StrategyOperations Strategy: An ExampleStrategies for Competitive AdvantageStrategies for Competitive AdvantageStrategies for Competitive AdvantageRole of Operations StrategyFor next week…1BA 341 – Lean OperationsDr. Bogdan BichescuOperations StrategyImportance of StrategyMission – statements that tell Where an organization is goingPurpose for being – what it contributes to societySets boundaries and provides focusStrategyAction plan to achieve missionGeneral strategy distilled into functional strategiesStrategies exploit opportunities and strengths, neutralize threats, and avoid weaknesses (SWOT)2Operations Strategy: An Example3MissionManufacture and service an innovative, growing, and profitable worldwide microwave communications business that exceeds our customers’ expectations. A Possible Operations StrategyTo manufacture products consistent with the organization’s mission as the global low-cost provider of microwave communications equipment. Product DesignQuality ManagementProcess DesignFacility LocationLayout DesignSupply-chain ManagementInventoryManagementScheduling & MaintenanceHR ManagementStrategies for Competitive AdvantageCompeting on DifferentiationOffer products that are different, better, or uniqueCan result from any aspect of the product or service that impacts customer’s perception of valuee.g., quality & reliability, features, product variety, after-sale services, delivery, technical support, etc. Special focus on “experience” in services, e.g., Disney, Hard Rock Cafe 4Strategies for Competitive AdvantageCompeting on CostFocus on maximizing value to customer. Does not necessarily imply low quality►Southwest Airlines – secondary airports, no frills service, efficient utilization of equipment►Walmart – small overhead, shrinkage, and distribution costs►Aldi – no bags, no bright lights, no music, no credit cards5Strategies for Competitive AdvantageCompeting on ResponseFlexibility – matching market changes with design innovation and flexible volumes e.g., Hewlett PackardReliability in meeting schedules and deadlinese.g., FedEx, German machine tool industryQuickness in production and deliveryPizza Hut, Motorola, Amazon 6Role of Operations Strategy7For next week…Read class notes, textbook and rework class and textbook productivity examples on your ownComplete the first assignment available on MyOMLab, which is due at midnight (11:59pm) on 8/29!Complete the first Packback QA session, which is also due at midnight on
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