Operations strategy Flashcards
(10 cards)
Porter
1996: Sustainable competitive advantage doesn’t come from operational effectiveness but from strategy (choosing position, differentiation, choosing trade-offs, forging fit) - operations is merely tactical
Skinner
1969: The ‘missing link of manufacturing’ - it’s evaded by top management and needs more of a strategic role - deciding trade-offs and direction
Wheelwright & Hayes
1985: Four stages to making manufacturing a strategic resource. Ultimately want competitive advantage based on manufacturing, operations a driver for the whole firm
Hayes & Pisano
1994: Corporate strategy = competitive advantage = capabilities. Operations is the best place to build up core competencies - harder to copy, more organic. Think of manufacturing improvement programs in terms of capabilities required and created
Flynn, Schroeder & Flynn
1999: Lots of parameters to improve (cost, quality, speed, flexibility etc.), but ‘world class’ is still relevant: synergies rather than trade-offs
Skinner
1974: Focus factory by defining strategy and what this means for manufacturing (e.g. decide trade-offs), examining each production element and reorganising it around focus
Ferdows & DeMeyer
1990: Four capabilities in the sand cone model - quality, dependability, speed, cost - how to develop the factory
Hayes & Upton
1998: Capabilities are experienced and built over time so are hard to copy, and are less visible so harder to respond to. Strategy based on own vs. others capabilities (where you haven’t experienced it)
Hamel & Prahalad
1990: Competitiveness from core competencies that spawn unanticipated products
Problems with outsourcing [6]
- Heartless - Destroys heritage - Exploits workers - Means designers can’t walk onto the shop floor - Problems of counterfeit abroad - Will have to move again in the future as wages rise
