An extensive summary of the lectures given in the course OST in combination with almost the entire book. Including the important chapters to learn for the exam based on advice from the professor.
1. Course objectives ................................................................................................................................. 3
1.1 Important topics in the book of Slack & Lewis......................................................................... 3
2. Context operations management ........................................................................................................ 4
2.1 Examples of the primary process: .................................................................................................. 5
2.2 Not all operations are the same (four v’s) ..................................................................................... 7
2.3 Conclusion on the primary process ................................................................................................ 7
3. Structuring decisions ............................................................................................................................ 7
3.1 Horizontal, vertical and organizational structuring ....................................................................... 8
3.2 Operational performance .............................................................................................................. 8
3.3 Trade-offs and efficient frontier .................................................................................................. 10
3.4 Conclusion operations management point of view ..................................................................... 11
4. Nature of operations strategy ............................................................................................................ 12
4.1 Statergy decisions ........................................................................................................................ 12
4.2 Operations strategy ...................................................................................................................... 12
4.3 Perspectives on operations strategy ............................................................................................ 13
4.4 Reconciliation process + model Slack .......................................................................................... 14
4.5 Operations strategy matrix .......................................................................................................... 16
5. Processes and horizontal structure .................................................................................................... 18
5.1 Horizontal structure ..................................................................................................................... 18
5.2 Process design and performance ................................................................................................. 19
5.3 Product-proces matrix.................................................................................................................. 21
5.4 Horizontal structure and complexity ........................................................................................... 22
6. Planning and control / vertical structure ........................................................................................... 24
6.1 Decoupling point .......................................................................................................................... 24
6.2 Generic element of the vertical structure.................................................................................... 27
6.3 Planning philosophies / systems .................................................................................................. 30
6.3.1 Program oriented planning systems ..................................................................................... 31
7. Socially responsible Operation Strategy ............................................................................................ 34
7.1 Trade-offs and CSR ....................................................................................................................... 34
8. Case Hagen Style ................................................................................................................................ 35
9. Case Paint ........................................................................................................................................... 37
10. Purchasing and supply strategy ....................................................................................................... 40
10.1 Supply arrangements ................................................................................................................. 40
11. Management philosophies ............................................................................................................... 41
1
, 11.1 Total Quality Management (TQM) ............................................................................................. 41
11.2 Lean operations .......................................................................................................................... 42
11.3 Business process reengineering ................................................................................................. 44
11.4 Six Sigma ..................................................................................................................................... 45
11.5 These approaches are different ................................................................................................. 46
12. Product and service development / networks ................................................................................. 47
12.1 Product and service development networks ............................................................................. 48
13. Process of operations strategy ......................................................................................................... 49
13.1 Operations strategy formulation ............................................................................................... 49
13.2 Operations strategy implementation / alignment ..................................................................... 49
14. Operations strategy monitoring ....................................................................................................... 50
14.1 Difference between operational and strategic monitoring ....................................................... 50
14.2 Balanced scorecard approach .................................................................................................... 50
14.3 Innovators dilemma / Christensen’s theory .............................................................................. 51
14.4 Power-interest grid .................................................................................................................... 51
2
,1. Course objectives
Using the sixth edition of the book of Slack & Lewis on Operations Strategy. This summary is mostly
based on the given lectures.
To get an advanced understanding of the operations function and more specific of operations
strategy
- Be aware of different concepts and frameworks for describing and analysing operations and
operations strategy
- Be able to demonstrate the ability to apply concepts in a practical setting
- Be able to understand the operations function in the context of the entire organization
1.1 Important topics in the book of Slack & Lewis
- Chapter 1: Operations Strategy
o Page 8: The Four Vs
o Page 28: Operation Strategy
o Page 30: Central model of Operations Strategy (Slack & Lewis)
o Page 35: Decision areas
o Page 40: Operations Strategy Matrix
- Chapter 2: Operations Performance
o Page 62: Performance Objectives
o Page 68: Internal and external effects on performance objectives
o Page 74: Change of importance of performance objectives
o Page 76: Trade-offs
- Chapter 3: Socially Responsible Operations Strategy
o Page 113: CSR in terms of operations management
- Chapter 4: Capacity Strategy
o Page 120: Capacity Strategy
o Page 134: Generic timing strategies (changing capacity)
- Chapter 5: Purchasing and Supply Strategy
o Page 163: Types of supply arrangement
- Chapter 6: Process Technology Strategy
o Page 206: how do market volume and variety influence process technology
▪ Scale/Scalability
▪ Degree of Automation/Analytical Content
▪ Degree of Coupling/Connectivity
o Page 214: Product-process matrix
o Page 216: New developments in process technology change cost-flexibility trade-off
- Chapter 7: Improvement Strategy
o Page 242: Improvement approaches
o Page 252: Performance measurement
o Page 258: Sandcone model
- Chapter 8: Product and service development and organization
o Page 306: Organization structures
- Chapter 9: Process of operations strategy – formulation and implementation
o Page 312: Alignment
o Page 329: How do we know when the formulation process is complete?
▪ Figure 9.7
• Comprehensiveness
• Coherence
• Correspondence
• Critically
- Chapter 10: Process of operations strategy - monitoring and control
o Page 346: Differences between operational and strategic monitoring and control
o Page 353: Balance score card
o Page 368: Innovators dilemma
o Page 370: Power-interest grid
3
, 2. Context operations management
Lecture 2
What is ‘operations’? -> Operations is the activity of managing the resources and processes that
produce and deliver goods and/or services.
Input-transformation-output model -> applies to all activities and functions in an organisation. By
transformation inputs into outputs that satisfy a customers need. Transforming resources are
allocated to activities in various parts of the operation. Transformed resources move through these
activities until they become a mix of products and services.
Primary process -> dominant operations function of a company includes all the resources and
processes which are directly linked to producing the products and or services that can be considered
as being crucial for a long-term sustainable character of the company. A company exists for a
curtained reason(s) there is product being generated or a services being offered and is the reason
why a company exist. In a way you could say that the primary process is related to the
production/generation of these products and/or services.
Primary process is not always the most important process in a company, but the primary process is
linked producing products and/or services that give the company a long-term sustainable advantage
4
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