Operations Strategy Dugga PDF

Operations strategy Dugga **Chapter - 1** Overview: 1. 2. 3. 4. 5. 6. Chapter 1.1) **Operations excellence and strategic success** [Operations strategic importance] - - - [What are operations?] - - - [The transformation model] - - - 1.2) **Operations strategy v...

Operations strategy Dugga **Chapter - 1** Overview: 1. 2. 3. 4. 5. 6. Chapter 1.1) **Operations excellence and strategic success** [Operations strategic importance] - - - [What are operations?] - - - [The transformation model] - - - 1.2) **Operations strategy vs operations management** **Differences** - - - - 2\) **[Scope]** - 3\) **Level of aggregation** - - - 4\) **Level of Abstraction**: Concerned with issues that are more abstract and less directly observable - - - 5\) **Hierarchy of operations** - - - -  **Operations strategy definition:** - - - - - **Service vs manufacturing operations strategy** Manufacturing operations strategy: - Service operations strategy - **1.3 - Top-down Perspectives on Operation Strategy** - - - - - -  **Top-down perspective:** - - - - - - - - - - - - - **1.4 - Out-side in perspectives on operations strategy** Outside-In perspective - - - - [Translating market requirements:] - - -  **1.5 Bottom-up perspective** - - - - - **1.6 Inside-out perspective on operations strategy:** [Inside-out perspective] - - - -  Conclusion of all perspectives: - - - - - - **Chapter 2 - Overview:** - - - - **2.1 Context, content and process of operations strategy** - - **2.2 Context of operations strategy** The importance of context - - - - - **Operation conditions - Four Vs context** Use in order to analyze the operation conditions of organizations Variation and variety: in terms of volume Visibility: The extent of which clients are part of the operations or see the parts of the operations  Other side of the spectrum  **2.3 - Content of operations strategy** **Content of operations strategy** - - - [Operations performance objectives]  [Operations decisions areas] - - - - **2.4 - Process of operations strategy** [Process of operations strategy] - - - - [Process reconciles top-down/bottom-up perspective] [The operations strategy matrix] - - - -  **Chapter 3 - Operations performance** - - - - - - - **3.1 Operations performance levels** - - - - - - Three levels of operations performance - - - **3.2 - Societal performance** **People - Operations impact on social bottom line** - - - - - **Planet - Operations impact on environment bottom line** - - - - - **Profit - operations impact on economic bottom line** - - - - - **3.3 - Strategic performance** **Judging operations performance at a strategic level** - - - - - **3.4 Operational performance** **Judging operations performance at an operational level** - - - - **Operations performance objectives** 1. - - - 2. - - - 3. - - - 4. - - - - - - - - 5. - - - **3.5 - Operations performance objectives** **Performance objectives' internal and external effects** **Quality** - - **Speed** - - **Dependability** - - **Flexibility** - - **Costs** - - **Internal effects are often interdependent** - **Relative priority differs** - - - - **Order-winners and qualifiers**  - - - - - **3.6 - Trade-offs** **Trade-offs in operations strategy** - - - - - - - - - - **Orginal perspective of trade-offs** - - **Operational excellence perspective** -   - - - - **3.7 - Operations focus** ========================== **Focused operations** **Definition:** - - - **A "type" of operations strategy** - **Approaches to focus** - - - - - - **Benefits and risk of focus** **Benefits:** - - - **Risks;** - - - **Chapter 4: Responsible operations strategy** **4.1 - Five dimensions of responsible operations strategy** - - - - - - - - - - - - - - - **4.2 - The environmental dimension** **Effects on the environmental dimension** - - - - **Envrionmental considerations of operations decisions** - - - - - - - - - - - - - - - - **4.3 - Social dimension** **Effects on the social dimension** - - - - - **Social considerations of operations decisions** - - - - - - - - - - - - - - - - - **4.4 - Economic dimension** **Effects of the economic dimension** - - - - - - - **Effects of the economic dimension** - ** Transformation (processing) costs** **Output costs** **4.5 - Stakeholder dimension** **Effects of the stakeholder dimension** Basic idea it that a broad range of stakeholders should be considered when making business decisions The implication is that purely economic criteria are insufficient for a socially acceptable outcome However, making judgements regarding stakeholder outcomes is not straightforward Need to identify and undersand the issues that concern various stakeholder groups Also need to identify where stakeholders can provide insight or guidance, it is not only a one-way relationship **Customers** - - **Staff** - - **Suppliers** - - - **Community** - - **4.6 - Voluntary dimension** **Effects of the voluntary dimension** - - - - - **Chapter 5 - Capacity strategy - The content of operations strategy** **5.1 - The Nature of capacity strategy** **Decisions on capacity are fundamental** - - - **What is capacity strategy?** - - - - - - - - - **5.2 - Overall capacity level** **Decicing on overall level of capacity** - - - - **Factots influencing overall level of capacity** - **[Market requirements ]** - - - - **[Operations resources]** - - - -  **5.3 - Timing of capacity change** **The challenge of timing capacity changes** - - - - - [Three different strategy for the timing of capacity of change → Generic timing strategies] **Capacity smoothing strategy** - **Capacity lagging strategy**  **Capacity smoothing strategy** **Capacity leading strategies → Increasing capacity before we have demand** - - - - - - - - **Capacity lagging strategy → Wait until we have enough demand** - - - - - - - - **Capacity smoothing strategy: → Combination of increasing capacity and use inventory** - - - - - - - - **5.4 - Location of capacity** **On the location decisions** - - - - - - **Factors influencing location of sites** - **Market requirement factors** - - - **Operations resources** - - - **Chapter 6 - Purchasing and Supply Strategy** - **The importance of supply strategy** **for Operations competitiveness** - - - - **Supply network terminology:**  - - - - - - - - - **Dyadic network relationships:** - - **Triadic network relationships:** - - **Benefits of supply network perspective** - - - - - - - **6.2. Do vs Buy - In house or outsource** The importance of do or buy decisions - - - - - **Examples of effects on quality** - - - - - - - - **Examples of effects on speed** [Do it yourself in-house supply] - - Buy it in outsourced supply - - - **Examples of effects on dependability** Do it yourself in house supply - - Buy it in outsourced supply - - **Examples of effects on flexibility** DIY - In-house supply - - Buy it in outsourced supply - - **Examples of effects on cost** "Do it yourself" in-house supply - - - "Buy it in" outsourced supply - - - **Factors defining Vertical integration decisions** - - - - - - -  **Strategic/operation aspects of vertical integration decisions or do/buy decisions** **Strategic aspects of operations scope decision** - - - - - - - - - - - - - - - - - **6.3 - Supply relationships** **Ingredients of supply relationships**  **Elements of partnerships relationships** - - - - - - - - - - - **Actions:** - - - - - **Choosing type of relationship** - - - - - - - - **6.4 - Supply dynamics** **Supply chain dynamics** - \- Dynamic/bullwhip effect → Ex: Pandemic and household goods ---\> Caused problems in the supply chain  - **Causes of supply chain dynamics** - - - - - - - - **6.5 - Managing supply chains over time** **Long-term - Supply network configuration** - - - - Omni-channel: Seamless all-inclusive customer experience, by fully integrating all possible channels **Managing supply chain dynamics or bullwhip effects** - - - - - - - **Matching supply networks to market requirements** - - -  **6.6 - Supply chain risks** **Examples of supply chain risk:** Supply disruptions: - - - - - Supply delays: - - - - Systems breakdown - - Forecast inaccuracy - - - **Chapter 7 - Process Technology Strategy** **7.1 Nature of technology strategy** **Process technology and its importance** - - - - - - - - **Process technology strategy** - **Drivers of the adoption of new process technologies:** - - - - - - **7.2 - Characterizing process technology** **Characterizing process technology** - - - - - - **Primary capabilities of process technology** Technologies can be charachterized by its primary capabilities - - - - - **Charachterizing process technology - Scale, automation and coupling**  On information - processing technology → We need to rethink the above dimensions, since these are mainly adopted for traditional manufacturing firms. **On Information process technology - Processing technology** - - - **7.3 - Product-process matrix and technology** **Product-process matrix and technology dimensions** - - **Market pressures on process technology** - - - **Developments in process technologies** - - -  **7.4: Evaluating process technology strategically** **Technology evaluation criteria** - - - **Evaluating feasibility** - - - - **Evaluating acceptability** - - -  **Evaluating vulnerability** - - - - - - Resource vulnerability - Financial vulnerability - **Chapter 8 - Improvement strategy** **8.1 - Approaches to improvement** **On the nature of Improvement strategy** - - - - **Improvement as [radical exploration:]** - - - - - **Improvement as [incremental exploitation:]** - - - - - **Strategic or operational focus** - - - - **Strategic Improvement Cycle** - - **8.2 - Benchmarking** Benchmarking - Learning from others - - - - - **8.3 - IP matrix: Importance performance matrix** - -  **Order winners and qualifiers** - **Importance to customers** -  **Performance relative to competitors** - When we combine above factors → **We get the importance-performance matrix**  - - - **8.4 - Sandcone model** - **Improvement sequences** - - - - - - - - -  **8.5 - Process knowledge** **The importance of process knowledge** - - - - **Stages of process knowledge** **1- Complete ignorance** - - **2 - Awareness** - - - - **3 - Measurement** - - **4 - Control of the mean** - - - **5 - Process capability** - - - **6 - Know how** - - **7 - Know why** - - - - - **8 - Complete knowledge** - - - **8.6 - Knowledge management** **The importance of knowledge** - - - - - - - - **Knowledge management (KM)** - - - - **Nonaka and Takeuchi knowledge model** - - **9.1 - Resource perspective on development** **Product and service development capacity** - - - - - \- Demand for development capacity is uneven, whereas capacity is relatively fixed - **Under resourcing development capacity**  - **Product and service development networks** - - - - - - - - - - - - - **Product and service development technology** - - - - - **Organisation of product and service development** - - - - **Organisation structures for design processes** - - - - - - - **9.2 - Requirement perspective on development** **[Quality] of product and service development** - - - **[Speed] of product and service development** - - - - - - **[Dependability] of product and service development** - - - - **Flexibility of product and service development** - - - \- Flexibility is becoming increasingly important due to: - - - **Cost of product and service development** - - - - - - - **Chapter 10.1 - Nature of formulation** **Operations strategy formulation** - - - - - - - **The stages of the process of operations strategy**  - **Fit - aligning market and operations capability** **Direction of alignment** - - -  **10.2 - Analysis for formulation** **Analysis for formulation** - - - - - - **Analysing operations capabilities** - - - - - - **Challenges to operations strategy formulation** - - - - - **10.3 - Operations strategy matrix and formulation** **Operations strategy matrix** - - - - - **10.4 - Operations strategy implementation** **On operations strategy implementation** - - - **Line of fit** - -  **10.5 Organization responsibility for implementation** **Staff and line in operations** - - - - - - **Typology of central operations function** - - - - - - **11.1 - Operations strategy control** **The stages of the process of operations strategy**  **Strategic vs operational monitoring and control** - - - - **Simple operational control model** **Strategic monitoring and control is less clear-cut**  **Typology of operations control** - - **11.2 - Controlling risk** **Comtrolling implementation risks** - - **Tight alignment**  **Loose alignment** **Deviations from alignment exposes the firm to risk**  **Pure and speculative risk** **Prevention, mitgation and recovery strategies**  **Intervention risk** **11.3 - Learning and strategic control** **The contributing of learning to strategic control** - - - **Single-loop learning in operations**  - - **The potential limitations of single-loop learning** **Double-loop learning** - - **Path dependence and development trajectories** - - - - **Learning potential and resource and process "distance"**  **This is Lean** Overview: Type of operations strategy and popular one. Illustration of how core parts of operation work. 1. 2. 3. 4. 5. 6. 7. 1) **Chapter: 1 - Two forms of efficiency** ======================================== **Prologue: Alison and Sarah's Diagnosis Experiences** The prologue introduces two contrasting healthcare journeys to illustrate resource vs. flow efficiency. Alison navigates a resource-efficient system, encountering long waits between consultations, while Sarah experiences a one-stop flow-efficient system that resolves her needs in a fraction of the time. **Key Takeaways:** - - - - **Main Conclusion:** Adopting a flow-efficient model can improve customer satisfaction by reducing waiting time and addressing needs more directly. **Chapter 2 - Relationship between Process and flow** ===================================================== - - - -  **Value-adding vs non-value adding** - - **Flow efficiency definition** - -  **Is faster always better?** - - **Direct vs indirect needs** - - **No - "customer" - look at the needs** - **Chapter 3 - Process laws** ============================ **Process laws** - - - - **Law of bottlenecks** - - - - **Conditions for bottlenecks to appear** - - **VUT relationship** **Law of Variation** explains how increased variation and high resource utilization contribute to inefficiency. The more variation you have, the quicker you're queue starts to pile up  **VUT relationship**: The more variation the longer your throughput time will be att every given utlization level **Chapter 4 - Efficiency matrix** - - - - - - - - **The efficiency frontier:**  **Variation limits efficiency** We can move to the right or up in the matrix to either focus on flow efficiency or resource efficiency **Chapter 5 - Efficiency paradox** ================================== **Which form of efficiency to priorize?**  Starting point: If we focus on resource efficiency the throughput time becomes long and if we focus to much in flow efficiency the throughput time becomes short. **Effects of over-focusing resource effiency** - - - The **efficiency paradox** reveals that focusing too much on resource efficiency can create inefficiencies and increased workload. It describes three primary sources of inefficiency in high resource-efficient systems: - - - **Conclusion:** A singular focus on resource efficiency can lead to more, often unnecessary work, contradicting the goal of true efficiency. Just because the resource capacity is busy, does not mean its contributing to adding/creating value. E.g Receipt example, do it all at once, compared to doing it frequently and reducing the superfluous work creating by the secondary needs. **Chapter 6 - Lean operations strategy** ======================================== - **Lean operations definition:** - - - - - -  **Chapter 7 - Continuous improvement** ====================================== How do you recognize a lean organization? - - **Dynamic goal:** - - - - - -