OPERATIONS

STRATEGY
OBJECTIVES:
1. Explain Competitive Priorities
2. Explain Manufacturing
Strategies
3. Explain Service Strategy
4. Explain Global Strategy
5. Discuss the Role of Operation
Strategies
COMPETITIVE PRIORITIES
- the specific capabilities of the
operation that give the company a
competitive edge.
- the strength of the business.
- Four Broad Categories of
Competitive Priorities
a. Cost
b. Quality
c. Time
d. Flexibility
a. Cost
- One of the primary
considerations while marketing
a product or service.
- production and distribution of
the product
C P
at low cost.
O R P
I R
S C O
T E F
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b. Quality
- Quality is define by customer.
- top priority of many companies.
- Two Aspects
1.High-Performance Design
- quality such as superior feature,
greater durability, convenience
service.
2.Consistency Quality
-measure how often the goods
meet the exact design.
c. Time
- reliable and fast delivery of product.
- Time Factors
1. Faster Delivery Time
- time lapse between customer order
and delivery.
2. On-time Delivery
- frequency with which the product is
delivered on time
3. Development Speed
- elapsed time from the idea generation
up to the final design and production of
products
d. Flexibility
- ability to provide wide variety of products.
- measures how fast the manufacturer
convert its process line used for one
product to produce another product.
- Two Types
1. Customisation- ability to satisfy the
specific needs of customer.
2. Volume Flexibility - ability to accelerate or
decelerate the rate of production to
handle fluctuations in demand.
Manufacturing Strategy
- a framework whose objective is the
increase competitiveness of the
organization.
- Production Systems Practiced by
Manufacturing Industries.
• Batch Production
• Mass Production
• Customised Production
• Assemble Products, test them, and
supply.
- Three Dominant Manufacturing Strategies
1. Make-to-Stock
-ensure immediate delivery of the products.
- feasible for standardized products with high volumes.
2. Assemble-to-order
- serves as a competitive priority of customization and
ensures fast delivery.
- involves assemble processes, fabrication processes,
painting, cleaning, etc.
3. Make-to-order
- products are manufactured to the customer specification.
- evolve a set of processes that suits the manufacture
based on the customer requirements.
Service Strategy
-use of processes that
provides little variety in high
volumes and mostly
customized.
-include the processes that
produce set of standardized
service to specific customers.
- Three Service Strategies
1. Standardized Services
- fixed according to what you
think is appropriate for the market,
and generally cannot be changed.
2. Customized Services
- flexible and can be readily adopted
to suit clients’ specific requirements.
3. Assemble-to-order
- requires that the basic parts of the
product are already manufactured but
not yet assembled.
Global Strategy
- Pursued at the corporate level.
- Include buying foreign parts or
services and combat traditional
domestic competitions.
- one that company takes when
it wants to compete and expand
in the global market.
- factors analyzed by global strategy
• Demographic factors
• Psychological factor
• Industry factor
-factors identify by Global strategy
• Needs of product
• Delivery
• Volume
• Other needs of the customer.
-Two Effective Strategies
1. Strategic Alliance
2. Locating the Operations
Abroad and after sales
support.
1.Strategic Alliance
- agreement between the two parties as joint partners to
promote the products.
- Forms of Strategic Alliance
a. collaboration
- agreement between two parties arises when one
firm is having core competency in a particular
product which the other firm wants to promote in
its country.
b. Joint Venture
- agreement between the two firms to produce
jointly.
- use to gain access to foreign markets and quickly
promote their interest.
 c. Technology Transfer and Lincencing
-agreement in which one company
gives another company permission
to manufacture its product for a
specified payment.
2. Locating the Operations Abroad and
after sales support.
- before entering the market , it is
essential for firm to have a detailed
techno-economic survey.
The Role of the Operations
Strategy
-to provide a plan for the
operation functions so that it can
make the best use of its resources
and specifies the policies and
plans for using the organization’s
resources to support its long term
competitive strategy and other
strategies.
THANK
YOU