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Operations Management
Chapter 2, Operations Strategy
5e, Schroeder
McGraw-Hill/Irwin
Outline
1. McDonalds Operations Strategy
2. Global Scope of Operations and Supply
3.
4.
5.
6.
7.
Chains
Supply Chain Strategy
Operations Strategy Model
Emphasis on Operations Objectives
Linking Strategies
Environmental and Sustainable Operations
2-2
Operations Strategy
Operations strategy is a consistent pattern of
business decisions for the transformation
system and associated supply chain that are
linked to the business strategy and other
functional strategies, leading to a competitive
advantage for the firm.
2-3
2-5
Operations
Strategy Model
(Figure 2.1)
Internal
analysis
Corporate strategy
Business strategy
Operations Strategy
Mission
Distinctive
Competence
External
analysis
Functional strategies in
marketing, finance,
engineering, human
resources, and
information systems
Objectives
(cost, quality, flexibility, delivery)
Policies
(process, quality,
capacity, and inventory)
Distinctive Competence
Something an organization
does better than any competing
organization that adds value for
the customer.
Something that operations does
better than anyone else.
2-9
Flexibility
Schedule
Product change
2-11
Product innovator
Operations must maintain flexibility in processes, labor
and suppliers.
2-12
Product innovator
Order winner = flexibility (rapid introduction of
new products)
Order qualifiers = cost, delivery, quality
2-13
Product development
Sourcing
Manufacturing
Packaging
Distribution
Transportation
Services
End-of-life management (e.g. recycling)
2-14
Summary
2-16