OPERATIONS

MANAGEMENT
S E S S I O N 1 – O P E R AT I O N S
S T R AT E GY

P R O F. S U S H M I T A N A R A Y A N A

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Operations Management?
In simple terms:

“How do we plan for and organize our resources to meet our goals?”

Goals?

Resources?

Planning?

Organizing?

Meeting Goals?

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High level Business Plan
Operations Strategy
(long term
planning)
Forecast Sales and Operations Plan/ Aggregate Constraint
Production planning Management

Staffing plan Production Plan

(Service firm) (Manufacturing firm)

Short to
Medium Resource planning (service ) Resource planning (manufacturing )
Term CORRECTIVE
• Workforce schedule • Master Production Schedule
Planning FEEDBACK IS
• Materials and facility resources • Material requirement planning IMPORTANT!

•Employee schedules •Employee and equipment schedules

•Facility schedules •Production order schedules
•Customer schedules •Purchase order schedules

Execution

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Operations Strategy
Operations strategy is connected to the business plan of the firm
“Attempting to operationalize the organization’s vision through a roadmap for implementation”
All strategies attempt to manage certain trade-offs
For an operations strategy, these trade-offs are represented in the COMPETITIVE PRIORITIES of the firm

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COMPETITIVE PRIORITIES
Cost-conscious?

On-time deliveries?

High quality products?

High customization of products and services?

Processes (eg. Manufacturing, packaging, supply chain) that adhere to the competitive priorities
are said to possess competitive capabilities

Can a firm compete on all dimensions on priority?

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Identifying Competitive Priorities
ORDER WINNERS ORDER QUALIFIERS

Criteria used by customers to differentiate Minimal level required from a set of criteria
the services or products of one firm from for a firm to do business in a particular
those of the other market segment

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Exercise
WILL THESE PRIORITIES REMAIN
IDENTIFYING COMPETITIVE PRIORITIES
FOREVER?

Identify the competitive priorities of any firm What should be done then?

Which of these are order winners and order

qualifiers for the firm?

How do these priorities help the firm in

planning for/organizing their resources

PROF SUSHMITA NARAYANA 2020 NITIE 7