Operations Strategy Notes
Subject Overview
The first Operations Management group elective, covering the strategic role of operations and location/
Subject at a glance
4
Units
27
Topics
4
Credits
4
Infographics
Unit-wise Syllabus
4 units — open any unit for detailed topic-wise notes, diagrams and important exam questions
- Fit with overall firm strategy
- competitive positioning and value chain
- operations strategy decision areas
- resources and core capabilities
- relationship between grand strategy and operations strategy
- location and capacity strategy
- ERP concepts and implications
Cost
Low-cost production
Quality
Consistent, high quality
Speed
Fast delivery
Flexibility
Volume and product variety
Innovation
New products and processes
Study guide
This unit covers fit with firm strategy, competitive positioning, decision areas, core capabilities, location and capacity strategy and ERP. Link operations choices to a company's strategy.
- Product and service development strategy
- inventory concepts
- reasons for holding inventory
- types of inventory
- inventory reduction tactics
- inventory turnover
- ABC/VED/FSN selective inventory management
ABC
Annual consumption value
Tight control of A items
VED
Criticality: vital, essential, desirable
Never run out of vital items
FSN
Movement: fast, slow, non-moving
Clear non-moving stock
Study guide
You study product and service development, inventory, reasons for holding it, types, reduction tactics, turnover and ABC, VED and FSN analysis. Apply ABC analysis to a sample list.
- Vertical integration and outsourcing
- process technology strategy
- IT and operations
- dimensions of operations for competitive advantage
- maintenance program classification — corrective
- preventive
- predictive maintenance
Corrective (breakdown)
After failure
Cheap upfront, costly downtime
Preventive
On a fixed schedule
Fewer breakdowns, some wasted servicing
Predictive
When sensors show wear
Efficient; needs monitoring technology
Study guide
You study vertical integration, outsourcing, process technology, IT and operations, competitive dimensions and maintenance (corrective, preventive, predictive). Compare make-or-buy decisions.
- Global sourcing trends
- outsourcing and offshoring strategy
- global supply chain strategy
- materials requirements planning
- innovation management
- environment and social sustainability strategy
- 1Master production schedule
- 2Bill of materials
- 3Inventory records
- 4MRP calculations
Net requirements
- 5Planned orders
What to buy or make, and when
Study guide
You study global sourcing, outsourcing, offshoring, global supply chains, MRP, innovation and sustainability strategy. Study a global supply chain such as an electronics company.
Why Operations Strategy Matters
Operations strategy connects daily operations to competitive advantage, supporting careers in supply chain, operations and consulting.
How to Prepare for Operations Strategy
- Analyse one company's operations strategy.
- Practise ABC, VED and FSN classification.
- Follow supply chain news.
Operations Strategy: Frequently Asked Questions
What is ABC analysis?
ABC analysis classifies inventory into A (high value, few items), B and C (low value, many items) to focus control where it matters most.