Operations Management: An Integrated Approach, 5th Edition

THE ROLE OF OPERATIONS STRATEGY

The role of operations strategy is to provide a plan for the operations function so that it can make the best use of its resources. Operations strategy specifies the policies and plans for using the organization's resources to support its long-term competitive strategy. Figure 2-1 shows this relationship.

Remember that the operations function is responsible for managing the resources needed to produce the company's goods and services. Operations strategy is the plan that specifies the design and use of resources to support the business strategy. This includes the location, size, and type of facilities available; worker skills and talents required; use of technology, special processes needed, special equipment; and quality control methods. The operations strategy must be aligned with the company's business strategy and enable the company to achieve its long-term plan. For example, the business strategy of FedEx, the world's largest provider of expedited delivery services, is to compete on time and dependability of deliveries. The operations strategy of FedEx developed a plan for resources to support its business strategy. To provide speed of delivery, FedEx acquired its own fleet of airplanes. To provide dependability of deliveries, FedEx invested in ...