Chapter 2 operations, strategy, and operations strategy is provided here as a free pdf sample chapter for the book. Heizer 12 chapter 2 factor ratings method operations strategy in a global environment. Operations strategy is concerned with setting broad policies and plans for using the resources of the firm to best support the firms longterm competitive strategy. Chapter 2 competitiveness, strategy and productivity. Each activity, including the production activity has a strategy for achieving its mission and for helping the organization reach the overall mission. Operations managementchapter 2 pomg 2710 squ studocu. When you have completed this chapter you should be able to. Value chain dynamics and operations decisions pdf 3. Chapter 2 operations and supply chain strategy business.
Longterm and shortterm operations decisions are driven by the corporate strategy. Pdf operations, strategy and operations strategy long. What is operations strategy operations strategy is concerned with the development of a longterm plan for determining how to best utilize the major resources of the firm so that there is a high degree of compatibility between these resources and the firms longterm corporate strategy operations strategy addresses very broad questions about how these major resources should. This fresh and enlightening book offers a rounded overview of operations strategy with a particular focus on implementation. Chapter 3 operations strategy what is strategy and what is operations strategy. Understand the significant key success factors and core competencies 4. Heizer 12 chapter 2 factor ratings method operations strategy. The capabilities of the operation are then assessed in stage 2 of the procedure. High productivity rates relative to competitors can mean competitive advantages for companies. Opportunities to cut the cost of taxes and tariffs also encourage foreign operations.
Chapter 02 competitiveness, strategy, and productivity 2 3 c. The chapter identifies four dimensions on which operations strategy and operations management differ. An operations strategy involves decisions that relate to the design of a product and the infrastructure needed to support the product. Heizer 12 chapter 2 factor ratings method operations. Chapter 2 deals with operations management strateg. However, neither strategy formulation nor strategy implementation is a pure science or art because, for example, intuition and good subjective judgment are always essential in strategy formulation. Operations management is the profession that encompasses planning, implementing, and supervising that production. Study 18 chapter 2 operations and supply chain strategy flashcards from jessica m. Advertising and promotion operations influences competitiveness by 1. Operations and supply chain strategy chapter 2 strategic. This is defined in chapter 2 before formulation methods for operations. Implementing an operations strategy strategytraining. Chapter 1 mainly addresses the question what is global operation strategy.
Details of the constituents of an operations strategy are explored in more detail in. Tools are provided to analyze the concepts, distill their principles, and suggest guidelines for implementation and improvement. Use factor rating to evaluate both country and provider outsources 5. Because mcdonalds and pals sudden service are both in the quick service restaurant business, we would expect their operations strategies to be nearly identical. An operations strategy involves decisions that relate to the design of a product and the infrastructure needed to. Back in chapter 2 a distinction was drawn between operations strategy content and operations strategy process. Time scale operations management is relatively short to medium term. This will include decisions that affect minutebyminute, to monthbymonth activities. Operations strategy and competitiveness operations. The role of operations strategy operations management. It specifies how operations will implement corporate strategy. In this chapter, we will explain the importance of planning in successful retail organizations.
Operations management 12th edition textbook solutions. To facilitate the discussion, we introduce a retail planning and management model that will serve as a frame of reference for the remainder of the text. The strategy provides the foundation for the operational decisions made on a daily basis. This is defined in chapter 2 before formulation methods for operations strategy are discussed in chapter 3. What are the two key components of the operations strategy of federal express. Chapter 2 operations, strategy and operations strategy introduction an organizations operations function is concerned with getting things done. The premise of the book is that developing an effective operations strategy without its subsequent implementation will render the strategising process a waste of time and resources. Chapter 2 deals with operations management strategy.
Globalization means customers, talent, and suppliers are worldwide contributes efficiency and adds value to the products and services. Productivity of old model machine 6 loaves5 hours 1. Chapter 2 operations strategy in a global environment 1. Operations strategy content is the set of decisions that a company makes explicitly or implicitly which shape its operations strategy. Organization strategy provides the overall direction for the organization and is broad in scope, e. Student study guide this study guide compiles the learning objectives, key point summaries, and additional reading lists from every chapter into one single document. In other words, operations managers manage the process that transforms inputs into outputs. Building on concepts from strategic management, operations management, marketing and hrm, this text encourages a thorough understanding of operations strategy in a variety of businesses and organisations. Operations strategy the total pattern of decisions which shape the longterm capabilities of any type of. Frameworks for strategy and the decision category approach. The world trade organization has helped to significantly reduce tariffs around the world. Chapter 2 operations strategy in a global environment 33 control, health and safety, etc. A company that makes kitchen chairs wants to compare productivity at two of its facilities.
Operations strategy can be viewed as the effective use of production capability and technology for achieving business and corporate goals. Ch2class chapter2 operations strategy and competitiveness. The role of operations strategy is to provide a plan for the operations function so that it can make the best use of its resources. Michael porter, a harvard economist, suggests that there are three main ways that companies may gain an advantage over their competition figure 2. Strategy is the action plan to achieve a companys mission. How operations can be used for competitive advantage in todays world.
Professor terry hills operations strategy framework provides a systems perspective of how operations is linked to corporate and marketing strategies. An example under the capacity area of strategic decisions in operations would be. Our research fills a part of this existing gap in the literature. These goals include profit, innovation, customization, product flexibility, quality, response, delivery reliability and after sales service. The parent company has divested underperforming upstream mining assets during the recession and is relying on the downstream processing businesses, like the smelters, to. Hill framework for operations strategy formulation.
Identify and explain three strategic approaches to competitive advantage 3. Aug 20, 2017 heizer 12 chapter 2 factor ratings method operations strategy in a global environment. Operations strategy and competitiveness multiple choice 1. Chapter 02 operations and supply chain strategy 22 5. Explain the role of operations strategy in the organization. Chapter 2 operations strategy and competitiveness operations strategy operations strategy is concerned with setting broad policies and. This is the concept of order qualifier but we cannot excel in all competitive priorities at once.
A companys operations are the activities that produce and deliver a product or service. Chapter 1 pointed out that operations management is important because it is responsible for managing most of the organizations resources. The success of a strategy depends on doing many things well not just a fewand integrating among them. Strategy process mission strate o functional area strate o ies v v marketing fin. Nafta seeks to phase out all trade and tariff barriers among canada, mexico, and the united states. Chapter 2 operations strategy in a global environment. Chapter 1 pointed out that operations management is important because it is. Pdf on jan 1, 2011, krisztina demeter and others published. Illustrate how operations strategy pertains to adding. Unlimited viewing of the articlechapter pdf and any associated supplements and figures. This chapter starts by introducing the evolving process of global operations strategy. For countries, high productivity rates can reduce the risk of inflation and generate high standards of living for the country as a whole. Chapter 02 operations and supply chain strategy answer key multiple choice questions 1. Both military and business strategy can be described in similar ways and include some of the following.
The discussion is organized around four related premises. Formulation of operations strategy is the process of clarifying the various objectives and decisions that make up the strategy, and the links between them. Chapter 02 competitiveness, strategy, and productivity 2 4 7. Oct 24, 2015 this presentation covers the graphical material in chapter 2 operations strategy. This chapter explains the connection between operations and strategy. There are levels which are considered a minimum to enter a market. Operations management chapter 3 chapter 3 operations. Now in its fifth edition, this clear, wellstructured and interesting text offers insight into the more advanced topic of operations strategy. Setting broad objectives that direct an enterprise towards its overall goal planning the path that will achieve these goals stressing longterm rather than shortterm objectives dealing with the total picture. Pdf on feb 21, 2015, seyed mohammad moattar husseini and others published operations strategy chapter 5 powerpoint find, read and cite all the research you need on researchgate.
Learn operations chapter 2 strategy with free interactive flashcards. Chapter 2 operations strategy and competitiveness 28. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Operations and supply chain strategy chapter 2 free download as powerpoint presentation. Operations strategy is considered in many organisations as the implementation of an improvement approach such as lean operations. Operations strategy is an important area of practice and research. The firms mission is then supported by each activity. The five ps of operations strategy implementation purpose a shared understanding of the motivation, boundaries and context for developing the operations strategy point of entry the point in the organization where the process of implementation starts process how the operations strategy formulation process is made explicit. Chapter 2 the role of operations strategy provide a plan that makes best use of resources o specifies the policies and plans for using organizational resources o supports business strategy developing business strategy a business strategy is developed after taking into many factors and following some strategic decisions o what business in the company in mission o analyzing. Productivity competitiveness how effectively an organization meets the wants and needs of customers relative to others that offer similar goods and services marketing influences competitiveness by 1. This presentation covers the graphical material in chapter 2 operations strategy. There is a direct connection or should be between this functional area and organizational plan.
In mexico, the creation of maquiladoras free trade zones allows. Work with an implementation team helping one of the worlds most profitable and largest aluminium smelters improve profits and production by implementing a new operations strategy. Application of decision category approach and the capabilities approaches. Defining how firms compete the mcgrawhill companies, inc. Operations strategy is a strategy for the operations function that is linked to the business strategy and other functional strategies, leading to a consistent pattern of decision making and competitive advantage for the. Choose from 500 different sets of operations chapter 2 strategy flashcards on quizlet.
The historical growth of operations management and strategy period concept originator andor in. Some people think of operations as the daily tasks and tactics that transform materials or actions into a product or service, but operations strategy goes a level. Operations management 12th edition edit edition 91% 3780 ratings for this books solutions. Chapters 4 to 8 cover various improvement approaches including lean, bpr, erp, tqm and agile operations. Strategy implementation involves motivating employees. View notes ch2class from mis mis208 at university of dhaka. Chapter chapter objectives objectives introduce the concept of operations strategy and its various components, and show how it relates to the overall business strategy of the firm. Operations strategy specifies the policies and plans for using the organizations resources to support its longterm competitive strategy.
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