Operations Management

HRM-306

Chapter-02
Q. 01 Operation Strategy
The mean by which how operations implements the firm corporate
strategy and help to build a customer driven firm is called operations
strategy.

Operations strategy links long-term and short-term operations

decisions to corporate strategy and develop the capabilities the firm
need to be competitive.
Q. 02: Developing a customer driven operation strategy
.Corporate strategy

Market analysis

Competitive
priorities

No
New service/
product
Development

Performance
yes Gap

Operation Strategy Competitive capabilities

 Corporate strategy
1. Environmental Scanning
2. Core Competencies
• Work force
• Facilities
• Market and financial know-How
• Systems and technology
3. Core Process
• Customer relationship
• New product/ service development
• Order fulfillment
• Supplier relationship
4. Global Strategy
• Strategic Alliances
• Locating Abroad
5. Flexibility of the environment
Your strategy is to be enough flexible to cope with the changeable environment.
• Scenario Building
• Reality check
• Communication
• Hire
• Shortaining the budget cycle.
 Market Analysis:

1. Market segmentation
2. Need assessment
a) Service or product need
b) Delivery system needs
c) Volume needs
d) Others need (reputation, technical support)
3. Target Market
 Competitive priorities and capabilities:
Cost 1. Low-cost operations

Quality 2. Top Quality

3. Consistency quality
Time 4. Delivery speed
5. On-time delivery
6. Development speed

Flexibility 7. Customization
8. Variety
9. Volume flexibility
 New product and service Development:
Development Strategy:
1. Product variety
2. Design
3. Innovation
4. Service
 Service Package:
1. Supporting facility
2. Facilitating goods
3. Explicit service
4. Implicit service
 Development Process:
. Design
Service or
product not
profitable

Need to rethink
Analysis the new offering
or production
process

Development Post launch

review

Full launch
 Quality function deployment:
1. Voice of customer
2. Competitive analysis
3. Voice of the engineer
4. Correlation
5. Technical comparison
6. Trade-offs
THANKS EVERYONE