Re-industrialization discussion – Groups of 4 or 5Operational Strategy DevelopmentRecent trends in Operational Strategy drive current studies and behaviors.According to the National Center for Manufacturing Sciences, Global Competitiveness is the degree to which a nation can, under free and fair market conditions, produce goods and services that meet the tests of international markets, while simultaneously maintaining or expanding the real income of its citizens.Famed management guru, Michael Porter, has developed a theory to explain the determinants of national competitive advantage. Recent trends in Operational Strategy drive current studies and behaviors.The meaning of Quality is dependent on the context and your corporate strategy.The timely introduction of new features and innovative design will determine winners in certain industries.The timely introduction of new features and innovative design will determine winners in certain industries.Traditionally cost was the dominate measure of a production system with cost control as the primary responsibility of production management.Flexibility refers to the ability to offer a range of products and adjust to unexpected changes in demand of product mix offered.Recent trends in Operational Strategy drive current studies and behaviors.Recent trends in Operational Strategy drive current studies and behaviors.Elements of Production and Operations Strategy The impact of short term decisions is measureable in hours or days.The impact of medium-range decisions is measureable in weeks or months.Long-range decisions are strategic.Capacity PlanningCAPACITY is the number of units a plant can produce in a given time horizon.The location of a product on the Product Life-Cycle Curve can assist with capacity decisions.Slide Number 26Break even analysis can provide an approximation of the desirability of capacity expansionIn a manufacturing environment, when the quantity produced of an item increases, what is the impact on the cost to produce the item?An 80% Learning CurveAs experience is gained with the production of a particular product, the production process becomes more efficient.Experience curve demonstrated by the Price of Integrated Circuits During the Period 1964-1972Fundamental issues in Capacity StrategyBasic Approaches to Capacity StrategyWhich strategy is logical in these scenarios? A, B, or CRe-industrialization discussion – Groups of 4 or 51. Is US Manufacturing rising or in decline?2. What is an innovation hub? Pros or Cons? 3. What direction should American manufacturing take for future success? Don’t forget to include your names and submit to filebox.Within your group of 4 or 5 people, create an electronic document that includes the names of those in your group and results from your discussion on these three questions.Submit document to Scholar under filebox (not assignments).1OPERATIONAL STRATEGY DEVELOPMENTNahmias Textbook, Chapter 1Recent trends in Operational Strategy drive current studies and behaviors.Global CompetitionEmphasis on • Quality• Timeliness• Cost• FlexibilityFocus on the Entire Supply ChainEnvironmental Awareness5According to the National Center for Manufacturing Sciences,Global Competitiveness is the degree to which a nation can, under free and fair market conditions, produce goods and services that meet the tests of international markets, while simultaneously maintaining or expanding the real income of its citizens.How can we measure the success of global competition?Famed management guru, Michael Porter, has developed a theory to explain the determinants of national competitive advantage. 1. Factor Conditions2. Demand Conditions3. Related and Supporting Industries4. Firm Strategy, structure, rivalryhttp://www.mdaniels.com/why-do-competing-stores-locate-near-one-another/ ©2005 McGraw-Hill/IrwinRecent trends in Operational Strategy drive current studies and behaviors.Global CompetitionEmphasis on • Quality• Timeliness• Cost• FlexibilityFocus on the Entire Supply ChainEnvironmental Awareness8The meaning of Quality is dependent on the context and your corporate strategy.What do “customers” expect wrtQuality?1. Quality2. Timeliness3. Cost4. FlexibilityWhat defines the standard for each aspect of quality?Quality Score for Google is “an estimate of how relevant your ads, keywords, and landing page are to a person seeing your ad. Having a high Quality Score means that our systems think your ad, keyword, and landing page are all relevant and useful to someone looking at your ad.”Source: https://support.google.com/adwords/answer/2454010?hl=enThe timely introduction of new features and innovative design will determine winners in certain industries.Time to market Time to customer 1. Quality2. Timeliness3. Cost4. FlexibilitySource: viosoftHow might you measure TTM?The timely introduction of new features and innovative design will determine winners in certain industries.Time to market Time to customer 1. Quality2. Timeliness3. Cost4. FlexibilityTraditionally cost was the dominate measure of a production system with cost control as the primary responsibility of production management.Now, cost reduction is the main focus.1. Quality2. Timeliness3. Cost4. FlexibilityWhat costs are part of a production system?Flexibility refers to the ability to offer a range of products and adjust to unexpected changes in demand of product mix offered.1. Quality2. Timeliness3. Cost4. FlexibilityRecent trends in Operational Strategy drive current studies and behaviors.Global CompetitionEmphasis on • Quality• Timeliness• Cost• FlexibilityFocus on the Entire Supply ChainEnvironmental AwarenessSupply Chain Management –Managing the pipeline of goods from contracts with suppliers, receipt of incoming material, and control of work-in-process and finished good to the movement of finished goods through the channels of distribution.14Recent trends in Operational Strategy drive current studies and behaviors.Global CompetitionEmphasis on • Quality• Timeliness• Cost• FlexibilityFocus on the Entire Supply ChainEnvironmental AwarenessBenefits of Measuring Environmental PerformanceCost SavingsIncreased SalesSupplier StatusInvestment OpportunitiesEmployee recruitmentLegal ComplianceSource: UK government businesslink15Elements of Production and Operations Strategy ©2005 McGraw-Hill/IrwinThe impact of short term decisionsis measureable in hours or days.Image from http://www.10000ft.com/The impact of