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Globalization and Opm
Globalization and Opm
Globalization and Opm
Management
Operations Strategy in a Global
Environment
PowerPoint presentation to accompany Heizer/Render 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 2-1
Management, 7e
Learning Objectives
When you complete this chapter, you should
be able to :
Identify or Define:
Mission
Strategy
Ten Decisions of OM
Multinational Corporations
PowerPoint presentation to accompany Heizer/Render 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 2-2
Management, 7e
Learning Objectives - Continued
Describe or Explain:
Specific approaches used by OM to achieve
strategies
Differentiation
Low Cost
Response
PowerPoint presentation to accompany Heizer/Render 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 2-3
Management, 7e
Developing Missions and
Strategies
PowerPoint presentation to accompany Heizer/Render 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 2-4
Management, 7e
Mission
PowerPoint presentation to accompany Heizer/Render 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 2-5
Management, 7e
Mission/Strategy
PowerPoint presentation to accompany Heizer/Render 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 2-6
Management, 7e
Strategy
PowerPoint presentation to accompany Heizer/Render 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 2-7
Management, 7e
Strategy Process
Company
Mission
Business
Strategy
Functional
Functional Area
Area
Strategies
PowerPoint presentation to accompany Heizer/Render 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 2-8
Management, 7e
Strategies for Competitive
Advantage
Differentiation
Cost leadership
Quick response
PowerPoint presentation to accompany Heizer/Render 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 2-9
Management, 7e
Competing on Differentiation
PowerPoint presentation to accompany Heizer/Render 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 2-10
Management, 7e
Competing on Cost
PowerPoint presentation to accompany Heizer/Render 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 2-11
Management, 7e
Competing on Response
Flexibility
Reliability
Timeliness
PowerPoint presentation to accompany Heizer/Render 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 2-12
Management, 7e
OMs Contribution to Strategy
Operations Specific Competitive
Decisions Examples Strategy Used Advantage
Quality FLEXIBILITY
Sonys constant innovation of new products Design
Product HPs ability to follow the printer market Volume
Location DELIVERY
Pizza Huts five-minute guarantee at lunchtime Speed
Layout Federal Expresss absolutely, positively on time Dependability Differentiation
(Better)
Human Resource
QUALITY
Motorolas automotive products ignition systems Conformance Response
Supply Chain Cost (Faster)
Motorolas pagers Performance leadership
(Cheaper)
Inventory
IBMs after-sale service on mainframe computers AFTER-SALE SERVICE
Scheduling
Fidelity Securitys broad line of mutual funds BROAD PRODUCT LINE
Maintenance
PowerPoint presentation to accompany Heizer/Render 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 2-13
Management, 7e
Process Design
Customization at high
High Process-focused Volume
Job Shops Mass Customization
(Print shop, emergency
(Dell Computers PC)
room , machine shop,
Repetitive (modular)
fine dining
focus
Variety of Products
Assembly line
Moderate (Cars, appliances, TVs,
fast-food restaurants) Product-focused
Continuous
(steel, beer, paper,
bread, institutional
kitchen)
Low
Low Moderate High
Volume
PowerPoint presentation to accompany Heizer/Render 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 2-14
Management, 7e
Preconditions -
To Implement a Strategy
One must understand:
Strengths & weaknesses of competitors and new
entrants into the market
Current and prospective environmental, legal, and
economic issues
The notion of product life cycle
Resources available with the firm and within the OM
function
Integration of OM strategy with company strategy and
with other functions.
PowerPoint presentation to accompany Heizer/Render 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 2-15
Management, 7e
Impetus for Strategy Change
PowerPoint presentation to accompany Heizer/Render 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 2-16
Management, 7e
Stages in the Product Life Cycle
Introduction
Growth rate
Growth
Maturity
Decline
PowerPoint presentation to accompany Heizer/Render 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 2-17
Management, 7e
Strategy and Issues During a
Products Life
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Principles of Operations Management, 5e, and Operations 2-18
Management, 7e
Strategy Development and
Implementation
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Principles of Operations Management, 5e, and Operations 2-19
Management, 7e
SWOT Analysis Process
Environmental Analysis
Form a Strategy
PowerPoint presentation to accompany Heizer/Render 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 2-20
Management, 7e
SWOT Analysis to Strategy
Formulation
Mission
Internal External
Strengths Opportunities
Strategy
Internal External
Weaknesses Threats
Competitive
Advantage
PowerPoint presentation to accompany Heizer/Render 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 2-21
Management, 7e
How It Works
If competitive Distinctive
advantage, leads to Company
competencies affect
achieving Mission
Business
Strategy
Functional Area
Strategies
PowerPoint presentation to accompany Heizer/Render 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 2-22
Management, 7e
Four International Operations
Strategies
PowerPoint presentation to accompany Heizer/Render 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 2-23
Management, 7e
Global Strategy
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Principles of Operations Management, 5e, and Operations 2-24
Management, 7e
International Strategy
PowerPoint presentation to accompany Heizer/Render 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 2-25
Management, 7e