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business
operations management 6th
Strategic Operations Management The New Competitive Advantage 1st Edition Robert Lowson - Solutions
7 What are the business choices and integrative elements needed for a service strategy?
6 Why is the service sector a particularly difficult environment for operations?
5 Explain what is meant by the term a ‘package of features’ when discussing a service.
4 How can we model the value of a service?
3 What are the important components of an operations strategy for many SMEs?
2 Why does the SME operational structure pose particular problems?
1 What are the strengths and weaknesses of an SME? In what way might the SME operational environment differ from other larger organizations?
■ Discuss the building blocks of a service strategy?
■ Understand the business choices and integrative elements of a service strategy?
■ Develop an operations strategy for service sector communities?
■ Appreciate the nature of services and the service sector?
■ Apply the operations strategy building blocks to SME organizations?
■ Appreciate an SME operational structure?
■ Formulate a strategy for SME operations?
1 At the beginning of this chapter we introduced the ‘filtration model’ (Fig. 11.1). This allowed an organization to customize its operations strategy using the influences associated with:■ The demand behaviour of products;■ The structure of the supply network; and■ The performance
1 The operations strategy described in the Zara and Mango case study relies heavily upon fast information flows. Discuss the necessary capabilities or competencies that these firms must posses to (a) capture particular types of data (what types are necessary), (b)transform data into information and
4 What are core competencies, capabilities and processes? In discussing these frameworks, provide examples from both manufacturing and retailing.
3 What is the ‘doctrine of competitiveness’? How does the concept ensure a manufacturing contribution to strategic advantage?
2 What do the terms ‘order qualifiers’ and ‘order winners’ mean? Why are these concepts necessary for an operations strategy?
1 Why are data and information flows of particular importance to a retailer like Wal-Mart?
■ How are human resource needs met?
■ How are the informational needs of operations met?
■ How is quality controlled and improved?
■ How are the design attributes arrived at?
■ Who owns the transformation system?
■ How is the process physically organized?
■ Where is the process located?
■ What are the quantitative limits of the transformational process?
■ How is the actual transformation carried out?
■ What are the basic operational principles (processes and infrastructure) for each transformation system?
■ How are these transformational systems linked?
■ How are the various product transformation processes defined?
■ Appreciate the competitive advantage accruing from a manufacturing and retailing operations strategy
■ Discuss the formulation of manufacturing and retailing strategies
■ Understand the key building blocks of retail and manufacturing operations strategies
■ Have an appreciation of the problems associated with these particular sectors
1 Use the basic LISP interactions to compare the supply system of an automotive manufacturer with a grocery retailer.
3 In what ways can we measure value?
2 How will an understanding of complexity help firms in the future?
1 Why is demand understanding becoming more problematic for many organizations?
2 The case study describes the situation where retailers increasingly use foreign, offshore manufacturing suppliers for garments due to cheaper labour costs. These costs are, however, offset by the hidden costs of the supply network and inflexibility. Consider how these hidden costs might be
1 How would a better understanding of demand alleviate the perfect storm of markdowns(too much inventory) and stock-outs (too little inventory) and the need to operate using long-term forecasts? What are the factors of demand that are important in the manufacture and retail of clothing goods for
5 What are the main problems associated with long-term forecasting? In what industries might such activities be easier or harder?
4 Will strategies for managing demand become more important in the future for, say, an enterprise such as Amazon.com?
3 Are business cycles important for all organizations? Can examples be found where they are not?
2 What is meant by dependent and independent demand and push and pull systems?
1 Identify the four Cs for a bar of chocolate and a railway journey from Reykjavik to Oslo.
2 In Fig. 8.5 an example operations strategy was developed for Southwest Airlines. This showed how certain factors could receive a particular emphasis depending upon the type of consumer or product. Analyse the change in emphasis necessary to customize an operations strategy for each of the NIA
1 Discuss the possible components of NIA operations strategy given the changes that are likely in the next five years.
4 Discuss examples of firms with different operations strategy life cycles. They can be viewed as being at different stages as well as performing at different levels (world-class, efficient or suboptimal).
3 What are the main competitive priorities for each of the above sectors?
2 What are the main product and service attributes of:■ The emergency services?■ A high quality hotel?■ An automotive manufacturer?■ An electricity supply company?
1 What do we mean by the term ‘operational implications’? In what ways does the understanding of the market have important implications for operations strategies?
4 We have described a number of tactical factors that may need to be considered as part of an operations strategy. Choose four of these and discuss the extent to which they will influence the strategic decisions of a retailer, a manufacturer and a service provider.
3 The business environment is an important source of influence upon an organization. What factors can we use to analyse and classify the forces involved?
2 If a firm chooses to adopt a particular positioning, how can the operations strategy be of unique support?
1 What do we mean by the term tactical factors? How will they influence the transformation process of operations?
4 Finally, we have seen that certain tactical factors are also fundamental as part of an operations strategy to support both the wider business strategy and the unique strategic positioning the organization seeks. Discuss which of these tactical factors or management levers are of particular
3 What technologies and resources are also vital for the operations strategy to be effective?
2 Can the core capabilities or competencies and processes necessary to support this strategy be identified?
1 What are the main assumptions behind the operations strategy of Sun Mountain Lodge?
■ How are human resource needs met? Issues such as recruitment, training, motivation, working practices, health and safety and employee well-being
■ How are the informational needs of operations met? This relates to the information systems and information technology requirements: the data demands and the information outputs of the transformation system.
■ How is the flow of materials, (services) and people planned and controlled? Material, service component or people flow through the transformation process.
■ How is quality controlled and improved? What are the levels and tolerances? What improvements should be made? How will any changes influence the product and service combination and the customer/client?
How does the introduction of new or modified designs impact upon the transformation system and the customer or client?
■ How are product and service attributes arrived at? What are the steps in the design process?
■ Who owns each transformation system? Are the processes conducted in-house (if so do they map to functional boundaries or do they cut across), are they provided by a supplier, outsourced to a third party, subcontracted, etc.
■ How is the process physically organized? The layout and arrangement for the movement of material, people and goods.
■ Where is the process located? These decisions will dictate customer convenience for a service as well as warehousing and supply issues for a tangible product.
■ What are the quantitative limits of the transformational process? The capacity of the transformation system. How many burgers, haircuts or clients can be coped with at any given time?
■ How is the transformation actually carried out? The mixture of human labour and technology. The socio-technical mix that involves job design and the human–machine interface design.
■ What are the basic operations principles of each transformation system? The process choice and infrastructure needs. Is the process based upon leanness, flexibility, batches, projects, continuous flow, a line, a modular cell, etc.?
■ How are the transformational systems linked? The material or client or product and service combination flows.
■ How are the transformational processes defined? The scope of the individual system models.How can we define the transformation systems and processes?
■ Appreciate how contingency issues in an external competitive environment will shape such a strategy?
■ Understand how certain key tactical factors can be used as management levers to shape an operations strategy?
■ Explain the strategic positioning an operations strategy can support?
■ Appreciate the mission of an operations strategy?
5 The impact assessment conducted by senior managers at Omicron was ostensibly an internal exercise. Could a similar analysis be undertaken across a wider supply network gaining the input from other firms? Could you suggest what performance measurements might be agreed upon between firms in such a
4 What advantages and disadvantages might operations strategy customization have for a firm?
3 Part 1 of the Omicron Foods case demonstrated that an organization might customize an operations strategy for each major customer. Consider if this could be done for product types or groups in the financial services sector or healthcare sector.
2 In teams or groups, consider other instances when a firm might want to adopt different operations strategies. It may be constructive to consider this question in relation not only to the grocery retailing and manufacturing industries, but also the service sector. Might this strategic approach
1 The various building blocks comprising an operations strategy for Omicron are clearly specific to their sector (grocery production and retail). Can similar components be identified for other commercial ventures, such as the financial services or a restaurant?
3 Can such goods and services ever be totally individualized? What are the main hurdles in achieving this status?
2 To what degree will mass customization and the provision of individualized goods and services be a factor in future commerce (for both goods and services)?
1 In what ways might a customized operations strategy lead to competitive advantages?What are the advantages and disadvantages?
2 What are the most important factors for an organization in achieving this customization?
1 How can these operations strategies be designed and implemented to become individual and unique?
■ Consider the problems and approaches involved in implementation of a strategy?
■ Develop an understanding of the ways in which various firms might customize their operations strategies for maximum strategic impact
1 What are the main building blocks important for a QR operation’s strategy? Why are they particularly vital in a retail industry (particularly clothing)?Appreciate how the various components of an operations strategy are combined and fused in order to closely mirror the various demands placed
4 What might the role of e-operations be in these circumstances?
3 How might these data and information needs be met? What information systems and information technologies are suited to this purpose?
2 How important are data and information to the role of an operations strategy? What data and information needs are strategically important for a chain of restaurants or a department store?
1 In the operations strategy composition matrix certain generic building blocks were described. Give practical examples for each ingredient using: (a) a chain of restaurants, and (b) a department store.
1 The Aztec Retail Group applied a quick response operations strategy. Discuss what other types of operations strategy might also be developed in these circumstances. What would be the advantages and disadvantages of using other approaches?
3 What are the essential differences between the form or pattern of organization and the substance or structure?
2 When might an organization employ more than one operations strategy?
1 In what circumstances might a manufacturer, an insurance company, a theatre, and a hospital use an operations strategy? What types might be suitable for each and what benefits might accrue?
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