Outline Operations Global Company Profile: Boeing Management

Outline Operations Global Company Profile: Boeing Management free pdf ebook was written by OMER YAGIZ on March 14, 2006 consist of 14 page(s). The pdf file is provided by www.emu.edu.tr and available on pdfpedia since July 25, 2012.

operations management operations strategy in a global environment outline ? global company profile: boeing ? identifying..stores around the world faster than its competition by building flexibility into..3 built in japan and the ford focus built in europe. haier...

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Outline Operations Global Company Profile: Boeing Management pdf




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Outline Operations Global Company Profile: Boeing Management  - page 1
Operations Management Operations Strategy in A Global Environment Chapter 2 Some additions and deletions to this slide set have been made by Ömer Yağız. PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) Outline ♦Global Company Profile: Boeing ♦Identifying Missions and Strategies Mission Strategy ♦Achieving Competitive Advantage Through Operations Competing on Differentiation Competing on Cost Competing on Response PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-1 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 2-2 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 Outline - continued ♦Ten Strategic OM decisions ♦Issues in Operations Strategy Research Preconditions Dynamics Learning Objectives When you complete this chapter, you should be able to : ♦Identify or Define: Mission Strategy Ten Decisions of OM ♦Strategy Development and Implementation Identify Critical Success Factors Build and Staff the Organization Integrate OM with Other Activities PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) ♦Describe or Explain: Specific approaches used by OM to achieve strategic concepts Differentiation Low Cost Response PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-3 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 2-4 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 Global Strategies Boeing – sales and production are worldwide Benetton – moves inventory to stores around the world faster than its competition by building flexibility into design, production, and distribution Sony – purchases components from suppliers in Thailand, Malaysia, and around the world Global Strategies Volvo – considered a Swedish company but it is controlled by an American company, Ford. The current Volvo S40 is built in Belgium and shares its platform with the Mazda 3 built in Japan and the Ford Focus built in Europe. Haier – A Chinese company, produces compact refrigerators (it has one-third of the US market) and wine cabinets (it has half of the US market) in South Carolina PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-5 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 2-6 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 1
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Outline Operations Global Company Profile: Boeing Management  - page 2
Some Multinational Corporations Home Country USA USA USA USA Japan USA % Sales Outside Home Country 34 72 60 62 63 57 2-7 Some Multinational Corporations Home Country Britain Switzerland Netherlands Germany Britain & Netherlands % Sales Outside Home Country 78 98 94 51 95 % Assets Outside Home Country 50 95 85 NA 70 % Foreign Workforce NA 97 82 38 64 Company Citicorp Colgate- Colgate - Palmolive Dow Chemical Gillette Honda IBM % Assets Outside Home Country 46 63 50 53 36 47 % Foreign Workforce NA NA NA NA NA 51 Company ICI Nestle Philips Electronics Siemens Unilever PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-8 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 Boeing Suppliers (777) Firm Dassault Messier-Bugatti Messier - Thales Country France France France Component Design and PLM software Landing gear Electrical power conversion system and integrated standby flight display Interior lighting Fuel pumps and valves Central computer system © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 Boeing Suppliers (777) Firm BAE SYSTEMS Alenia Aeronautics Country UK Italy Component Electronics Upper center fuselage & horizontal stabilizer Carbon fiber for wing and tail units Center wing box Forward fuselage, fixed section of wing, landing gear well © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 Toray Industries Fuji Heavy Industries Kawasaki Heavy Industries PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) Japan Japan Japan Diehl FR-HiTemp FR - Smiths Aerospace PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) Germany UK UK 2-9 2-10 Boeing Suppliers (777) Firm Teijin Seiki Mitsubishi Heavy Industries Chengdu Aircraft Group Hafei Aviation Country Japan Japan China China Component Hydraulic actuators Wing box Rudder Parts Intangible Reasons Reasons to Globalize Reasons to Globalize Tangible Reasons Reduce costs (labor, taxes, tariffs, etc.) ( labor, Improve supply chain Provide better goods and services Understand markets Learn to improve operations Attract and retain global talent PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-11 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-12 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 Figure 2.1 2
Outline Operations Global Company Profile: Boeing Management  - page 3
Reduce Costs Foreign locations with lower wage rates can lower direct and indirect costs Maquiladoras World Trade Organization (WTC) North American Free Trade Agreement (NAFTA) APEC, SEATO, MERCOSUR European Union (EU) PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) Improve the Supply Chain Locating facilities closer to unique resources Auto design to California Athletic shoe production to China Perfume manufacturing in France 2-13 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-14 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 Provide Better Goods and Services Objective and subjective characteristics of goods and services On-time deliveries Cultural variables Improved customer service Understand Markets Interacting with foreign customer and suppliers can lead to new opportunities Cell phone design from Europe Cell phone fads from Japan Extend the product life cycle PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-15 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-16 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 Learn to Improve Operations Remain open to the free flow of ideas General Motors partnered with a Japanese auto manufacturer to learn Scandinavian design ideas have been used to improve equipment design and layout Attract and Retain Global Talent Offer better employment opportunities Better growth opportunities and insulation against unemployment Relocate unneeded personnel to more prosperous locations Incentives for people who like to travel PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-17 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-18 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 3
Outline Operations Global Company Profile: Boeing Management  - page 4
Cultural and Ethical Issues Cultures can be quite different Attitudes can be quite different towards Punctuality Lunch breaks Environment Intellectual property PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) You May Wish To Consider National literacy rate Rate of innovation Rate of technology change Number of skilled workers Political stability Product liability laws Export restrictions Variations in language Work ethic Tax rates Inflation Availability of raw materials Interest rates Population Number of miles of highway Phone system 2-20 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 Thievery Bribery Child labor 2-19 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) Match Product & Parent Braun Household Appliances Firestone Tires Godiva Chocolate Haagen-Dazs Ice Cream Jaguar Autos MGM Movies Lamborghini Autos Alpo Petfoods 1. 2. 3. 4. 5. 6. 7. 8. Volkswagen Bridgestone Campbell Soup Ford Motor Company Gillette Nestlé Pillsbury Sony Match Product & Parent Braun Household Appliances Firestone Tires Godiva Chocolate Haagen-Dazs Ice Cream Jaguar Autos MGM Movies Lamborghini Autos Alpo Petfoods 1. 2. 3. 4. 5. 6. 7. 8. Volkswagen Bridgestone Campbell Soup Ford Motor Company Gillette Nestlé Pillsbury Sony PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-21 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-22 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 Match Product & Country Braun Household Appliances Firestone Tires Godiva Chocolate Haagen-Dazs Ice Cream Jaguar Autos MGM Movies Lamborghini Autos Alpo Petfoods Match Product & Country Braun Household Appliances Firestone Tires Godiva Chocolate Haagen-Dazs Ice Cream Jaguar Autos MGM Movies Lamborghini Autos Alpo Petfoods 1. 2. 3. 4. 5. Great Britain Germany Japan United States Switzerland 1. 2. 3. 4. 5. Great Britain Germany Japan United States Switzerland PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-23 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-24 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 4
Outline Operations Global Company Profile: Boeing Management  - page 5
Mission Mission - where are you going? Mission Mission: overall purpose of an organization Organization’s purpose for being - reason for existence Provides boundaries & focus Answers ‘How can we satisfy people’s needs?’ Expressed in published statement © 1995 Corel Corp. (misyon; varoluş nedeni). The mission of an organization defines its reason for existence. It asks the question “Why are we in business?” PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-25 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 2-26 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 Mission Organization’s purpose for being Answers ‘What do we provide society?’ Provides boundaries and focus Sample Mission - Merck The mission of Merck is to provide society with superior products and services - innovations and solutions that improve the quality of life and satisfy customer needs - to provide employees with meaningful work and advancement opportunities and investors with a superior rate of return PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-27 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-28 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 Some Examples of Mission Statements ♦Eastern Mediterranean University, as an institution of higher learning, is dedicated to the dissemination (yayma) of knowledge through high-quality teaching; to promoting the discovery of knowledge through scholarly research; and to the application of knowledge for the good of humanity. CLICK THE IMAGE PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) Some Examples of Mission Statements NETAŞ‘S MISSION To provide excellent telecommunication solutions within the framework of Total Quality Management philosophy. CLICK THE IMAGE 2-29 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-30 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 5
Outline Operations Global Company Profile: Boeing Management  - page 6
Some Examples of Mission Statements ARÇELİK’S MISSION Fully satisfying customer expectations and requirements is the guiding mission of Arçelik. In order to achieve and maintain the high standards it has, Arçelik has a continual programme of investment which encompasses plants, manufacturing equipment, research & development and most importantly personnel. CLICK THE IMAGE PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) Some Examples of Mission Statements TURKISH AEROSPACE INDUSTRY’S MISSION TAI is a company of dedicated, dynamic and resourceful people searching for excellence and continued growth in the field of aerospace. Our mission is to fulfil the aerospace requirements of our nation and world markets with commitment to high quality, value and on time delivery. CLICK THE IMAGE PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-31 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 2-32 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 Some Examples of Mission Statements FEDERAL EXPRESS’ MISSION “To produce outstanding financial returns by providing totally reliable, competitively superior global air-ground transportation of high priority goods and documents that require rapid, time- sensitive delivery.” CLICK THE IMAGE PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) Factors Affecting Mission Philosophy & Values Environment Mission Customers Benefit to Society Public Image Profitability & Growth 2-33 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-34 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 Mission/Strategy ♦Mission - the purpose or rationale for existence “where you are going” ♦Strategy - how an organization expects to achieve its mission and goals. It is an action plan - “how you are going to get there” Strategy Action plan to achieve mission Shows how mission will be achieved Company has a business strategy Functional areas have strategies PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) © 1995 Corel Corp. PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-35 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 2-36 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 6
Outline Operations Global Company Profile: Boeing Management  - page 7
Strategy Process Company Mission Business Strategy Functional Area Functional Area Strategies Marketing Decisions Operations Decisions Fin./Acct. Decisions Achieving Competitive Advantage Through Operations competitive advantage: a unique advantage over competitors ♦Competing on differentiation - “uniqueness” “better” ♦Competing on cost “cheaper” ♦Competing on quick response “more responsive” PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-37 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 2-38 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 Competing on Differentiation ♦Uniqueness - can go beyond both the physical characteristics and service attributes to encompass everything that impacts customer’s perception of value SONY - 100 mhz TV HONDA in Arab countries MS mouse - 3 buttons (one is actually a wheel) Landsend stores in the U.S. “Guaranteed. Period.” “Replay Radio” software (for recording streaming radio on the Internet) PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) Competing on Cost ♦Maximum value as perceived by customer ♦Does not imply low value or low quality computers made in Taiwan Wal-Mart stores in the U.S. Landsend stores in the U.S. (quality at a low price + fast service) Amazon.com in the U.S. Germanwings airlines (European flights; as low as 19 euros) PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-39 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 2-40 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 Germanwings Leaders in safety and comfort Top marks for Germanwings. The readers of Europe's biggest business magazine "Capital" have awarded Germanwings best no-frills airline in the categories "Feeling of Safety" and "Comfort of Seats". In the latest edition of the business magazine Germanwings is also named as best value for money among the German no- frills carriers. For the 17th year running, "Capital" asked its readers and online users to rate the performance of international airlines. With more than 6,000 responses, the 2003 flight survey of this respected business magazine was bigger than ever, with the participants drawing on their collective experience of around 40,000 flights. "We are delighted that we at Germanwings were able to beat the competition and claim the top ranking among business travellers, not only in the categories which are the most important for us: "Feeling of Safety" and "Comfort of Seats", said Dr. Joachim Klein, Managing Director of Germanwings. "We see it as particularly positive that this market sector which is so important to us views Germanwings as the best value no-frills airline." The results of the survey can be seen in the latest edition of "Capital". PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) Competing on Response Response: set of values related to rapid, flexible, and reliable performance ♦Flexible response - ability to match changes in the market (design and volume changes) ♦Reliable scheduling for timely delivery ♦Speed in design, production and delivery (quickness) PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-41 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 2-42 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 7
Outline Operations Global Company Profile: Boeing Management  - page 8
OM’s Contribution to Strategy Operations Decisions Product Quality Process Location Layout Human resource Supply-chain Inventory Scheduling Examples Specific Strategy Used FLEXIBILITY Sony’s constant innovation of new products………………………………....Design HP’s ability to follow the printer market………………………………Volume Southwest Airlines No-frills service……..…..LOW COST DELIVERY Differentiation Pizza Hut’s five-minute (Better) guarantee at lunchtime…………………..…..……..Speed Federal Express’s “absolutely, positively on time”………………………..….Dependability Response QUALITY (Faster) Motorola’s automotive products Cost ignition systems…………………………......Conformance leadership Motorola’s pagers………………………..….Performance (Cheaper) 10 Decision Areas of OM (Strategic OM Decisions) Goods & service design Quality Process & capacity design Location selection Layout design Human resource and job design Supply-chain management Inventory Scheduling Maintenance PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) Competitive Advantage IBM’s after-sale service on mainframe computers……....AFTER-SALE SERVICE Fidelity Security’s broad line of mutual funds………….BROAD PRODUCT LINE Maintenance © 2001 by Prentice Hall, Inc., PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-43 Upper Saddle River, N.J. 07458 Figure 2.4 2-44 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 Implementation of 10 OM Decisions Operations managers implement these 10 decisions by Goods & Services and the 10 Operations Management Decisions Operations Decisions Goods & services decisions Quality Process and capacity design Goods Product is usually tangible Objective quality standards Customer not involved in most of process Services Product is usually intangible Subjective quality standards Customer may be directly involved in process. Capacity must match demand to avoid lost sales © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 Identifying key tasks and staff needs Implementation is influenced by nature of goods & services few products are either all goods or all services many are mixtures Let us take a look at goods and services vis-a- vis the implementation of OM decisions PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-45 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-46 Goods & Services and the 10 Operations Management Decisions Operations Decisions Location Selection Layout Design Human Resources and Job Design Goods May need to be near raw materials or labor force Layout can enhance production efficiency Workforce focused on technical skills. Labor standards consistent. Output-based wage system. Goods & Services and the 10 Operations Management Decisions Operations Decisions Goods Services Supply-chain relationships Supply chain Supply-chain relationships critical to important, not necessarily management Services May need to be near customer (car rental) Subjective quality standards Customer may be directly involved in process. Capacity matches demand to avoid lost sales © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 Inventory Scheduling final product Raw materials, work- in-process, and finished goods Ability to convert inventory may allow leveling of production rates 2-48 critical Most services cannot be stored Primarily concerned with meeting the customer's immediate schedule © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-47 PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 8
Outline Operations Global Company Profile: Boeing Management  - page 9
Goods & Services and the 10 Operations Management Decisions Operations Decisions Goods Services Variety of Products An Example: Process Design High Process-focused JOB SHOPS (Print shop, emergency room, machine shop, fine dining Mass Customization Customization at high Volume (Dell Computer’s PC) Repetitive (modular) focus ASSEMBLY LINE (Cars, appliances, TVs, fast-food restaurants) Maintenance Maintenance is often Maintenance is often preventive and takes "repair" and takes place at place at the production the customer's site site Moderate Low Low PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) Product focused CONTINUOUS (steel, beer, paper, bread, institutional kitchen) 2-49 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-50 Moderate High Volume © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 Operations Strategies for Two Drug Companies Brand Name Drugs, Inc. Competitive Advantage Product Selection and Design Quality Generic Drug Corp. Product Differentiation Low Cost Heavy R&D; Extensive Labs Quality is a major priority; Standards exceed regulatory requirements 2-51 Operations Strategies for Two Drug Companies - continued Brand Name Drugs, Inc. Processes Product & modular production processes Long product runs in specialized facilities Build capacity ahead of demand Still located in city in Location which it was founded Scheduling Central production planning Generic Drug Corp. Process focuses General production processes; Job Shop approach, short run; Focus on high utilization Recently moved to low tax, low labor cost environment Many short run products complicate scheduling Little R&D Meets regulatory requirements on a country-by-country basis as necessary PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-52 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 Operations Strategies for Two Drug Companies - continued Brand Name Drugs, Inc. Human Resources Supply Chain Inventory Hires the best; nation- wide searches Operations Strategies for Two Drug Companies - continued Brand Name Drugs, Inc. Maintenance Highly trained staff; Extensive parts inventory Generic Drug Corp. Generic Drug Corp. Highly trained staff to meet challenging demands Very experienced top executives provide direction; other personnel paid below average Long term supplier Tends to purchase competitively relationship to find bargains Maintains high finished Process focus drives up WIP goods inventory, inventory. primarily to ensure all Finished goods inventory tends demands are met to be low 2-53 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-54 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 9
Outline Operations Global Company Profile: Boeing Management  - page 10
Issues in Operations Strategy Characteristics of High ROI Firms ♦High product quality ♦High capacity utilization ♦High operating efficiency (actual / expected) ♦Low investment intensity (amount of capital required to produce a dollar of sales) Strategic Options Managers Use to Gain Competitive Advantage In a study, 248 businesses were asked to indicate the importance of 32 categories that led to competitive advantage 28% - Operations Management 18% - Marketing/distribution 17% - Momentum/name recognition 16% - Quality/service 14% - Good management 4% - Financial resources 3% - Other PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) ♦Low direct cost per unit (relative to the competition) ROI = Gross profit/Total assets PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) From the PIMS (Profit Impact of Marketing Strategy) study of the Strategic Planning Institute 2-55 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 2-56 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 Strategic Options Managers Use to Gain Competitive Advantage ♦28% Operations Management 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 within the firm and within the OM function Integration of OM strategy with company strategy and with other functions. PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) Low- cost product Product-line breadth Technical superiority Product characteristics/differentiation Continuing production innovation Low-price/high-value offerings Efficient, flexible operations adaptable to consumers Engineering research development Location Scheduling 2-57 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-58 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 Dynamics- Reasons for Strategy Change Stages in the Product Life Cycle Growth rate ♦Strategies change for two reasons: Changes in the organization One example -- product life cycle Introduction Growth Maturity Changes in the environment economic, social, legal, political, market, etc. Decline PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-59 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) 2-60 © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 10
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