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Contents
List of gures and tables, and exhibits from case studies Preface Acknowledgements xi xix xxiii

1 What is operations strategy?


Introduction Key questions What is operations and why is it so important? What is strategy? Operations strategy operations is not always operational The content of operations strategy an overview The operations strategy matrix Summary answers to key questions Further reading Appendix: the resource-based view of the rm Notes on the chapter

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1 1 1 5 6 19 26 29 31 31 33

2 Operations performance
Introduction Key questions Operations performance objectives The relative importance of performance objectives change over time Trade-offs Targeting and operations focus Summary answers to key questions Further reading Notes on the chapter

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35 36 36 48 54 61 67 68 68

3 Capacity strategy
Introduction Key questions What is capacity strategy? The overall level of operations capacity The number and size of sites Capacity change Location of capacity Summary answers to key questions Further reading Notes on the chapter

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69 70 69 71 80 82 89 96 97 98

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4 Supply network strategy


Introduction What is supply network strategy? Key questions The outsourcing decision vertical integration? Do or buy? Traditional market-based supply Partnership supply Which type of relationship? Network behaviour Network management Summary answers to key questions Further reading Notes on the chapter

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99 99 100 108 112 117 121 123 126 132 133 134

5 Process technology strategy


Introduction Key questions What is process technology strategy? Scale/scalability the capacity of each unit of technology Degree of automation/analytical content what can each unit of technology do? Degree of coupling/connectivity how much is joined together? The productprocess matrix Evaluating process technology Summary answers to key questions Further reading Note on the chapter

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135 136 136 138 141 143 145 151 162 163 164

6 Improvement strategy
Introduction Key questions Development and improvement Setting the direction Importanceperformance mapping Developing operations capabilities Deploying capabilities in the market Summary answers to key questions Further reading Notes on the chapter

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165 165 165 170 178 182 187 192 194 194

7 Product and service development and organisation


Introduction Key questions The strategic importance of product and service development Product and service development as a process

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A market requirements perspective on product and service development An operations resources perspective on product and service development Summary answers to key questions Further reading Notes on the chapter

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8 The process of operations strategy sustainable alignment


Introduction Key questions What is sustainable alignment? Sustaining alignment over time What should the formulation process be trying to achieve? Analysis for formulation Formulation models for alignment The challenges to operations strategy formulation Summary answers to key questions Further reading Notes on the chapter

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227 227 228 233 246 248 251 253 261 262 262

9 The process of operations strategy substitutes for strategy?


Introduction New approaches to operations Key questions Total Quality Management (TQM) Lean operations Business process reengineering (BPR) Enterprise Resource Planning (ERP) Six Sigma Some common threads Summary answers to key questions Further reading Notes on the chapter

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264 264 265 266 271 278 282 287 293 297 298 298

10 The process of operations strategy implementation


Introduction Key questions What is implementation? Purpose the strategic context Point of entry the organisational context Process the methodological context Project management the delivery context Participation the operational context Summary answers to key questions Further reading Notes on the chapter

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299 299 300 300 305 317 319 325 330 332 332

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Cases studies
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Bunge Limited IKEAs global sourcing challenge: Indian rugs and child labour From Russia with love McDonalds Corporation Kuhn Flowers Inditex: Zara and beyond Delta Synthetic Fibres (DSF) The Greenville Operation Turnround at the Preston plant Disneyland Resort Paris

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335 364 378 390 402 418 423 430 439 446

Index

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Supporting resources
Visit www.pearsoned.co.uk/slack to nd valuable online resources Companion Website for students Study guides for each chapter to help test your understanding For instructors Complete, downloadable Instructors Manual PowerPoint slides that can be downloaded and used for presentations For more information please contact your local Pearson Education sales representative or visit www.pearsoned.co.uk/slack