Introduction & Strategy Module Introduction & Administrative www.kellogg.northwestern.edu/course/opns430/emp/vanmieghem/ What is operations Process view of Ops What is a good operation? A Strategic Framework for Ops Aligning strategy and operations: Focus Relationship between process choice and strategy Shouldice Hospital Wriston Manufacturing
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A Framework for designing an Operations Strategy and Structure
1. What is our strategic position: how do we compete & provide value in the market?
What is the value proposition to our customers? Rank (p, T, Q, V)
2. Given our strategic position, what must operations do particularly well?
Which competencies must ops develop? Rank (c, T, Q, Flex)
3. Given needed competencies, how should operations processes be structured to develop competencies that support strategy? Process choice (structure) and management
competitivestrategy
Resources & Processes
operationalcompetencies
What defines a good operation?Achieving alignment at Shouldice Hospital
A focused process attempts to deliver one specific and narrow customer value proposition (i.e., its priority ranking is clear and constant for all patients)– It is optimized to deliver the needed competencies for one narrow patient segment– Focus does not imply standardization: ER is focused on providing timeliness and
Operations is the process of bringing goods and services to customers Process view = viewing an organization as a transformation of inputs into outputs through a
network of activities and buffers, utilizing resources, IT and mgt
A good operation maximizes value or supply chain surplus A strategic framework for operations for increasing the value of operations by aligning the
competencies of the operations structure (resources & processes) with corporate strategy
Aligning strategy and operations can be achieved through: Focus Process choice