“The two most important attributes of any operations ‘Seatogy are frst that it aligns operations activites with the strategy ofthe whole organization, and second that it pvee clear guidance. Here ae two examples of very diferent businesses and very diferent stratagies which ‘nonetheless meet both criteria, Ryanair is today Europe's largest low-cost aifine(LOAS) tnd whatever else can be sald about its strategy, it does pat suffer from any lack of clarty,Ithas grown by offering Tow-cost basic services and has devised an operations ‘Sratogy which is inline wit ts market position. The ‘rfoiency ofthe ailine's operations supports its low-cost frarkot positon. Tumaround time at airports is Kept 10 & trinimum. This is achieved party because there are NO reals to be loaded onto the aircraft and partly through Improved employee productivity. Althe acraft in the fleet aro identical, ging savings through standardization tf parts, maintenance and servicing It also means larg® rors to a engie aircraft supplier and therefore the pporunity to negotiate prices down. Aso, because the company oiten uses secondary aipors landing and service fees are much lower. Finaly the cost of Seling its services is reduced where possible Ryanair has daveloped its own low-cost Internet ‘booking service. In adtton, the day-to-day experiences sf the company's operations managers can also modify ‘and refine these strategic decisions. For example, Ryanaie changed its baggage handing contractors ft Stansted airport inthe UK ater problems wth trisdirecting customers luggage. The company’s policy ‘om customer service Is also clear. We pattered Pyrat Giter Southwest Aitines, the most consistent profitable ‘tine in the US’, says Michaal O'Leary, Ryanai's Chiet Executive. Southwest founder Herb Kelicher created & formula for success that works by fing only one fyPe br arplane ~ the 737, using smaller airports, providing ports service on-board, seling tickets directly to Customers and offering passongers the lowest faros in tho market. We have adapted nis model for our marketplace and are now setting the lowfare standard for Europe. Our customer sevice’, says O'Leary. ‘is about the most wel defined in the world, We quarantes to give you the lowest a fre, You get @ gate fight. You get a normally on-time fight. That's the package. We don't, and won't, give you anything more. Are we going to say sorry for our lack of customer ‘one? Absolutly not. fa plano is canceled, will we put you up in a hotel overnight? Absolutely nat If plane fa delayed, will we give you a voucher fora restaurant? ‘Absolutely not." development and supply processes. moving @ product {rom Is intial design through volume production, tot istbution, and into post-sales service, resonsvely and ficient. Finally, Flextronics has developed integrated Industria parks to explot fully the advantages of thor ‘lobal, large-scale, high-volume capabities. Positioned In low-cost ragions, yet close to all major world marke, Flextronics industrial parks can significantly reduce the ‘cost of production. Locations include Gdansk in Pola Hungary, Guadalajara in Maxico, Sorocaba in Bazi, Flextronios is a global company besed in Singapore that Tee beting even wel-known brand names as Nokia and (Dol, which ere increasingly using electronic manufacturing cervines EMS) companies, such as Flextrorics, which Speaalze in providing tho cutsourced design, engineering, wesrutacturing and logistics operations forthe big brand ‘ramas tis amongst the biggest of those EMS suppliers that offer the broadest worldwide capabilities fom design to endt-io-end vertically integrated global supply chan tonfces, Flextronics’ operations strateny must balance their customers’ ned for ow costs (electronic goods te often sod in aferoly competitive market) with thelr rood for responsive and floxible service (electronics Tparkete can also be volatile). The company achieves this in number of ways. Fist, ithas an extensive network of dongn, manufacturing and logistics faites in the word's major electronics markets, giving them significant scale tan the flexity to move activites to the most appropiate \ewation to serve customers. Second, Flextronics offers vesrical integration capabiitios that simpy global product Cchennat in India and Shanghal in China. Fextronies own suppliers are encouraged to locate within these parks, from which products ean be produced on-site and shipped ‘rectly from the industrial park to customers, greatly reducing teight costs of incoming components and ‘outgoing products. Products not produced on-site can be ‘obtained ftom Flextronics’ network of regional manufactring facilties located near the industrial perks. Using this stratgy, Fextroics says it ean provide cost-fective olivery of finshed products within 1-2 days of orders.