Professional Documents
Culture Documents
An Introduction to
Operations Strategy
Nigel Slack and Michael Lewis, Operations Strategy, 2nd Edition, © Nigel Slack and Michael Lewis 2008
Slide 1.2
Analysis at the
level of the
Flow between resources process Operational
analysis
Nigel Slack and Michael Lewis, Operations Strategy, 2nd Edition, © Nigel Slack and Michael Lewis 2008
Slide 1.3
Operations strategy is …
Nigel Slack and Michael Lewis, Operations Strategy, 2nd Edition, © Nigel Slack and Michael Lewis 2008
Slide 1.4
Short-term Long-term
Demand
Demand
Timescale
e.g. capacity
decisions
1 – 12 months 1 – 10 years
Nigel Slack and Michael Lewis, Operations Strategy, 2nd Edition, © Nigel Slack and Michael Lewis 2008
Slide 1.5
Micro Macro
Level of analysis
Concerned with the
macro operation (level
of the firm)
Nigel Slack and Michael Lewis, Operations Strategy, 2nd Edition, © Nigel Slack and Michael Lewis 2008
Slide 1.6
Detailed Aggregated
Level of
‘Can we give tax ‘What is overall
aggregation
services to the small business advice
(Concerned with
business market in capability compared
resources at an
Antwerp?’ with other capabilities?’
aggregated level)
Nigel Slack and Michael Lewis, Operations Strategy, 2nd Edition, © Nigel Slack and Michael Lewis 2008
Slide 1.7
Concrete Philosophical
Level of abstraction ‘How do we improve ‘Should we develop
(Concerned with our purchasing strategic alliances with
the conceptual) procedures?’ suppliers?’
Nigel Slack and Michael Lewis, Operations Strategy, 2nd Edition, © Nigel Slack and Michael Lewis 2008
Slide 1.8
Products or services?
Manufacturing or non-manufacturing?
Operations strategy
should learn from
day-to-day
experiences
Bottom-up
Nigel Slack and Michael Lewis, Operations Strategy, 2nd Edition, © Nigel Slack and Michael Lewis 2008
Slide 1.10
Business strategy
Top-down
Capacity Quality
Supply networks Speed
Operations Market
Process technology Dependability
resources requirements
Development and Flexibility
organisation Cost
Bottom-up
Emergent sense of
what the strategy
should be
Operational
experience
Nigel Slack and Michael Lewis, Operations Strategy, 2nd Edition, © Nigel Slack and Michael Lewis 2008
Slide 1.11
Operations strategy
Nigel Slack and Michael Lewis, Operations Strategy, 2nd Edition, © Nigel Slack and Michael Lewis 2008
Slide 1.12
Strategic
reconciliation
Nigel Slack and Michael Lewis, Operations Strategy, 2nd Edition, © Nigel Slack and Michael Lewis 2008
Slide 1.14
Operations Competitors’
processes actions
Nigel Slack and Michael Lewis, Operations Strategy, 2nd Edition, © Nigel Slack and Michael Lewis 2008
Slide 1.15
Processes Competitors
Integration of equipment Big groups dominating
supply and client professional theatres
requirements In-house operations
Design process growing in exhibitions
market
Supplier liaison process
Conference market still
fragmented
Nigel Slack and Michael Lewis, Operations Strategy, 2nd Edition, © Nigel Slack and Michael Lewis 2008
Slide 1.16
COMPETITORS
Traditionally weak in:
promotion
design innovation
Nigel Slack and Michael Lewis, Operations Strategy, 2nd Edition, © Nigel Slack and Michael Lewis 2008
Slide 1.17
Operations Market
resources requirements
Strategic
reconciliation
Nigel Slack and Michael Lewis, Operations Strategy, 2nd Edition, © Nigel Slack and Michael Lewis 2008
Slide 1.19
Nigel Slack and Michael Lewis, Operations Strategy, 2nd Edition, © Nigel Slack and Michael Lewis 2008
Slide 1.20
Average Average
revenue cost
Structural issues-
physical arrangement
and configuration of
the operations
resource
Infrastructural issues-
Activities that take
place within the
operation’s structure
Nigel Slack and Michael Lewis, Operations Strategy, 2nd Edition, © Nigel Slack and Michael Lewis 2008
Slide 1.22
Quality
Market competitiveness
Performance objectives
Speed
Flexibility
Cost
Decision areas
Nigel Slack and Michael Lewis, Operations Strategy, 2nd Edition, © Nigel Slack and Michael Lewis 2008
Slide 1.23
7-Eleven Japan
Largest retailer in Japan
Sells 15.X as much per store as nearest rival
History of cautious expansion and technical and service innovation
‘Field Counsellors’ spread operations knowledge (also distance training)
Expansion by territory to reduce distribution costs
Early use of TIS (Total Information System)
TIS controls stock replenishment by twice a day delivery (sales analysed twice
a day)
New systems not Internet-based
New service includes:
Bank terminals
Downloading games
Downloading music to MD
Internet ordering and collection
Nigel Slack and Michael Lewis, Operations Strategy, 2nd Edition, © Nigel Slack and Michael Lewis 2008
Slide 1.24
RESOURCE DEPLOYMENT
Distribution centre Information sharing
QUALITY of products grouping by and parenting system
and services temperature spreads service
ideas
Distribution centres
Speed and and inventory
Market Competitiveness
dependability combined management systems
to indicate AVAILABILITY give fast stock
replenishment
Nigel Slack and Michael Lewis, Operations Strategy, 2nd Edition, © Nigel Slack and Michael Lewis 2008