October 2012
Intermediate to advanced
696 pages
34h 17m
English
Content preview from Operations Management: An Integrated Approach, 5th Edition
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OPERATIONS STRATEGY WITHIN OM: HOW IT ALL FITS TOGETHER
We have learned that the strategic decisions of a firm drive its tactical decisions. Operations strategy decisions are critical in this process because they serve as a linkage between the business strategy and all the other operations decisions. Recall that operations strategy provides a plan for the OM function that supports the business strategy. In turn, decisions regarding operations strategy directly impact decisions on organizational structure and infrastructure of the company. This includes selection of the facilities (Chapter 10), type of process (Chapter 8), choice of technology (Chapter 3), quality control decisions (Chapters 5 and 6), skills and pay of workers (Chapter 11), and numerous other decisions. As in the example of Southwest Airlines, an operations strategy that focuses on cost competition would translate into specific operations decisions that eliminate all frills from the system.
In subsequent chapters of this book, we will study specific decisions that pertain to organizational structure and infrastructure. We will see that these decisions are governed by the firm's operations strategy. We will also learn how these specific decisions impact each other.
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