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Lecture Managing operations across the supply chain (2/e): Chapter 2 - Swink, Melnyk, Cooper, Hartley

Chapter 2 - Operations and supply chain strategy. The main goals of this chapter are to: Describe link between operations and strategic planning, describe the links between the essential elements of operations strategy, describe customer desired outcomes, explain product- and process- priorities and links to competitive advantage, explain the use of various performance metrics. | Copyright © 2014 McGraw-Hill Higher Education. All rights reserved. CHAPTER 2 Operations and Supply Chain Strategy McGraw-Hill/Irwin 1 Learning Objectives LO2-1 Describe link between operations and strategic planning LO2-2 Describe the links between the essential elements of operations strategy LO2-3 Describe customer desired outcomes LO2-4 Explain product- and process- priorities and links to competitive advantage LO2-5 Explain the use of various performance metrics 2–2 2 Strategic Planning: Operations Strategy Defined 2–3 Operations Strategy: A set of competitive priorities coupled with supply chain structural and infrastructural design choices intended to create capabilities that support a set of value propositions targeted to address the needs of critical customers LO2-1 3 Levels of Strategic Planning 2–4 Environment Corporate Culture Corporate Strategy Business Strategies SBU SBU SBU Operations Strategy Finance, Marketing, etc. Strategies Strategic Questions What business(es) . | Copyright © 2014 McGraw-Hill Higher Education. All rights reserved. CHAPTER 2 Operations and Supply Chain Strategy McGraw-Hill/Irwin 1 Learning Objectives LO2-1 Describe link between operations and strategic planning LO2-2 Describe the links between the essential elements of operations strategy LO2-3 Describe customer desired outcomes LO2-4 Explain product- and process- priorities and links to competitive advantage LO2-5 Explain the use of various performance metrics 2–2 2 Strategic Planning: Operations Strategy Defined 2–3 Operations Strategy: A set of competitive priorities coupled with supply chain structural and infrastructural design choices intended to create capabilities that support a set of value propositions targeted to address the needs of critical customers LO2-1 3 Levels of Strategic Planning 2–4 Environment Corporate Culture Corporate Strategy Business Strategies SBU SBU SBU Operations Strategy Finance, Marketing, etc. Strategies Strategic Questions What business(es) should we be in? How do we compete? How do we best support the SBU strategy? Structure Infrastructure Figure 2-1 LO2-2 4 Levels of Strategic Planning: Corporate Strategy Corporate Strategy: overall mission and target businesses Long time horizon Overall values, direction and goals Acquisitions and divestitures Performance metrics Risk management 2–5 LO2-2 5 Strategic Business Unit (SBU): semi-independent organization for different products or markets Identification of customer or market segments Appropriate competitive priorities Constrained by corporate strategy More detailed Shorter time horizon 2–6 Levels of Strategic Planning: Strategic Business Unit LO2-2 6 Functional strategy: determines how functions support business unit strategies Management of critical resources Key metrics Identification of capabilities Coordination of activities 2–7 Levels of Strategic Planning: Functional Strategy LO2-2 SBU to attain its overall objectives? 7 Developing an Operations Strategy Critical .