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This chapter describes a company's competitiveness and its relative position to other firms in both local and global markets. The competitive dimensions of operations are cost, product quality and reliability, delivery speed, delivery reliability, coping with demand change, flexibility, and new product introduction speed. Central to the concept of operations strategy is the notion of operations focus and trade-offs. | Chapter 2 Operations Strategy and Competitiveness Operations Strategy Competitive Dimensions Order Qualifiers and Winners Strategy Design Process A Framework for Manufacturing Strategy Service Strategy Capacity Capabilities Productivity Measures OBJECTIVES 2 Operations Strategy Example Strategy Process Customer Needs Corporate Strategy Operations Strategy Decisions on Processes and Infrastructure More Product Increase Org. Size Increase Production Capacity Build New Factory 3 Competitive Dimensions Cost or Price Make the Product or Deliver the Service Cheap Quality Make a Great Product or Deliver a Great Service Delivery Speed Make the Product or Deliver the Service Quickly Delivery Reliability Deliver It When Promised Coping with Changes in Demand Change Its Volume Flexibility and New Product Introduction Speed Change It Other Product-Specific Criteria Support It 4 Dealing with Trade-offs Cost Quality Delivery Flexibility For example, if we improve customer service problem solving by | Chapter 2 Operations Strategy and Competitiveness Operations Strategy Competitive Dimensions Order Qualifiers and Winners Strategy Design Process A Framework for Manufacturing Strategy Service Strategy Capacity Capabilities Productivity Measures OBJECTIVES 2 Operations Strategy Example Strategy Process Customer Needs Corporate Strategy Operations Strategy Decisions on Processes and Infrastructure More Product Increase Org. Size Increase Production Capacity Build New Factory 3 Competitive Dimensions Cost or Price Make the Product or Deliver the Service Cheap Quality Make a Great Product or Deliver a Great Service Delivery Speed Make the Product or Deliver the Service Quickly Delivery Reliability Deliver It When Promised Coping with Changes in Demand Change Its Volume Flexibility and New Product Introduction Speed Change It Other Product-Specific Criteria Support It 4 Dealing with Trade-offs Cost Quality Delivery Flexibility For example, if we improve customer service problem solving by cross-training personnel to deal with a wider-range of problems, they may become less efficient at dealing with commonly occurring problems. For example, if we reduce costs by reducing product quality inspections, we might reduce product quality. 5 Order Qualifiers and Winners Defined Order qualifiers are the basic criteria that permit the firms products to be considered as candidates for purchase by customers Order winners are the criteria that differentiates the products and services of one firm from another 6 Service Breakthroughs A brand name car can be an “order qualifier” Repair services can be “order winners” Examples: Warranty, Roadside Assistance, Leases, etc 7 Strategy Design Process Strategy Map Financial Perspective Customer Perspective Internal Perspective Learning and Growth Perspective Improve Shareholder Value Customer Value Proposition Build-Increase-Achieve A Motivated and Prepared Workforce What it is about! 3 Kaplan and Norton’s Generic Strategy Map In the Kaplan
