Operations Strategy._Operations Managememt
- 2. Operations Strategy – Definition • Operations strategy is to provide an overall direction that serves the framework for carrying out all the organization’s functions. • According to Slack and Lewis, operations strategy holds the following definition: “Operations strategy is the total pattern of decisions which shape the long-term capabilities of any type of operations and their contribution to the overall strategy.” • Operations strategy is the tool that helps to define the methods of producing goods or a service offered to the customer
- 3. Strategy and Operations Strategy Strategy • Strategy includes: Setting broad objectives that direct an enterprise towards its overall goal; • Planning the path that will achieve these goals; • Stressing long term rather than short term objectives; • Dealing with the total picture rather than stressing individual activities; • Being detached from, and above the confusion and distractions of day to day activities. • Strategic decisions refer to those decisions which are widespread in their effect on the organization to which the strategy refers, define the position of the organization relative to its environment and move the organization closer to its long term goals. • Strategy is more than a single decision; it is the total pattern of the decisions and actions that influence the long term direction of the business. Observing the total pattern of decisions gives an indication of the actual strategic behavior.
- 4. Strategy and Operations Strategy Operations Strategy • Operations strategy concerns the pattern of strategic decisions and actions which set the role, objectives and activities of the operation. • Operations are the resources that create products and services. • Operational aspect is the opposite of strategic, meaning day to day and detailed. • One can examine both the operational and strategic aspects of operations. It is also conventional to distinguish between the content and the process of operations strategy. • The content of operations strategy is the specific decisions and actions which set the operations role, objectives and activities. • The process of operations strategy is the method that is used to make the specific content decisions. the total pattern of decisions gives an indication of the actual strategic behavior.
- 5. Contribution of Operations Strategy “From Implementing to Supporting to Driving Strategy” Most businesses expect their operations strategy to improve operations performance over time. In doing this they should be progressing from a state where they are contributing very little to the competitive success of the business through to the point where they are directly responsible for its competitive success. This means that they should be able to in turn master the skills first to implement, then support and then drive the operations strategy.