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Chapter 3 Operations strategy 81 messages at other times. The launch point is out of sight and 1.5 km from the cabin but a safe walking route is signposted. Club members can let themselves onto the airfield and drive to the launch point. At the launch point the casual flyers might have to stand and wait for some time until a club member has time to find out what they want. Even when a flight has been pre-booked casual flyers may then be kept waiting, on the exposed and often windy airfield, for up to two hours before their flight, depending on how many club members are present. Occasionally they will turn up for a pre-booked trial flight and will be turned away because either the weather is unsuitable or there are not enough club members to get a glider into the air. The casual flyers are encouraged to help out with the routine tasks but often seem reluctant to do so. After their flight they are left to find their own way back to their cars. Income from the casual flyers is seen to be small compared to membership income and launch fees but the club’s management committee views casual flying as a ‘loss leader’ to generate club memberships which are £350 per annum. The club used to generate a regular surplus of around £10,000 per year which is used to upgrade the gliders and other facilities. However, insurance costs have risen dramatically due to their crashing and severely damaging four gliders during the last two years. Two of the accidents resulted in the deaths of one member and one casual flyer and serious injuries to three other members. The club’s committee is under some pressure from members to end trial flights because they reduce the number of flights members can have in a day. Some members have complained that they sometimes spend most of their day working to get casual flyers into the air and miss out on flying themselves. Although they provide a useful source of income for the hard-pressed club (around 700 were sold in the previous year), only a handful have been converted into club memberships. Questions 1 Evaluate the service to club members and casual flyers by completing a table similar to Table 3.1. 2 Chart the five performance objectives to show the differing expectations of club members and casual flyers and compare these with the actual service delivered. 3 What advice would you give to the chairman? Problems and applications These problems and applications will help to improve your analysis of operations. You can find more practice problems as well as worked examples and guided solutions on MyOMLab at www.myomlab.com. 1 2 3 4 5 6 Explain how the four perspectives of operations strategy would apply to Ryanair and Flextronics. Compare the operations strategies of Ryanair and a full-service airline such as British Airways or KLM. What do you think are the qualifying and order-winning factors for (a) a top of the range Ferrari, and (b) a Renault Clio? What do you think are the qualifying or order-winning factors for IKEA described in Chapter 1? Search the Internet site of Intel, the best-known microchip manufacturer, and identify what appear to be its main structural and infrastructural decisions in its operations strategy. (Advanced) McDonald’s has come to epitomize the ‘fast-food’ industry. When the company started in the 1950s it was the first to establish itself in the market. Now there are hundreds of ‘fast-food’ brands in the market competing in different ways. Some of the differences between these fast-food chains are obvious. For example, some specialize in chicken products, others in pizza, and so on. However, some differences are less obvious. Originally, McDonald’s competed on low price, fast service and a totally standardized service offering. They also offered a very narrow range of items on their menu. Visit a McDonald’s restaurant and deduce what you believe to be its most important performance objectives. Then try and identify two other chains which appear to compete in a slightly different way. Then try to identify how these differences in the relative importance of competitive objectives must influence the structural and infrastructural decisions of each chain’s operations strategy.
82 Part One Introduction Selected further reading Boyer, K.K., Swink, M. and Rosenzweig, E.D. (2006) Operations strategy research in the POMS Journal, Production and Operations Management, vol. 14, issue 4. A survey of recent research in the area. Hayes, R.H., Pisano, G.P., Upton, D.M. and Wheelwright, S.C. (2005) Operations, Strategy, and Technology: Pursuing the Competitive Edge, Wiley. The gospel according to the Harvard school of operations strategy. Articulate, interesting and informative. Slack, N. and Lewis, M. (2008) Operations Strategy, 2nd edn, Financial Times Prentice Hall, Harlow. What can we say – just brilliant! Useful web sites www.aom.pac.edu/bps/ General strategy site of the American Academy of Management. www.cranfield,ac.uk/som Look for the ‘Best factory awards’ link. Manufacturing, but interesting. www.opsman.org Lots of useful stuff. www.worldbank.org Global issues. Useful for international operations strategy research. www.weforum.org Global issues, including some operations strategy ones. www.ft.com Great for industry and company examples. Now that you have finished reading this chapter, why not visit MyOMLab at www.myomlab.com where you’ll find more learning resources to help you make the most of your studies and get a better grade?
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sixth edition OperatiOns ManageMent
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Further reading in Operations Manag
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Pearson Education Limited Edinburgh
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Contents Guide to ‘operations in
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Contents ix Chapter 12 Inventory pl
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Guide to ‘operations in practice
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Guide to ‘operations in practice
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Making the most of this book and My
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Making the most of this book and My
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Preface xix Illustrations-based Ope
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To the Student . . . Making the mos
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About the authors Nigel Slack is th
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Publisher’s acknowledgements We a
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Part One INTRODUCTION This part of
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Chapter 1 Operations management 3 O
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132 Part Two Design Early conflict
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136 Part Two Design similar. It was
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Chapter 6 Supply network design Key
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140 Part Two Design The supply netw
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142 Part Two Design a particularly
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146 Part Two Design Figure 6.4 Offs
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148 Part Two Design Controversially
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150 Part Two Design Energy costs. O
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152 Part Two Design product and fas
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154 Part Two Design Figure 6.7 Cent
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156 Part Two Design The blue dotted
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158 Part Two Design Table 6.4 The a
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160 Part Two Design Figure 6.11 Rep
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162 Part Two Design Case study Disn
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164 Part Two Design plastic, and ap
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166 Part Two Design of a failing Di
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170 Part Two Design Figure S6.2 Som
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172 Part Two Design Figure S6.3 Tim
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174 Part Two Design Table S6.3 Expo
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176 Part Two Design a comparative s
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178 Part Two Design Operations in p
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180 Part Two Design The basic layou
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182 Part Two Design In functional l
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184 Part Two Design Figure 7.5 The
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186 Part Two Design shown with thre
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188 Part Two Design Table 7.2 The a
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190 Part Two Design Combinatorial c
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192 Part Two Design The general fun
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194 Part Two Design Heuristic proce
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196 Part Two Design Figure 7.16 (a)
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198 Part Two Design the total work
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200 Part Two Design Working from th
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202 Part Two Design ● ● ● Hig
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204 Part Two Design Table 7.4 Stand
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208 Part Two Design What is process
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210 Part Two Design be used where c
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214 Part Two Design E-business E-co
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216 Part Two Design Table 8.2 Examp
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218 Part Two Design Customer-proces
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220 Part Two Design ‘drive’ it.
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226 Part Two Design Table 8.5 Prese
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230 Part Two Design Case study Roch
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236 Part Two Design Human resource
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238 Part Two Design Table 9.2 Cause
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240 Part Two Design ● Group resou
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242 Part Two Design Job design Job
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248 Part Two Design asked to contri
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250 Part Two Design ● ● ● Eff
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252 Part Two Design Table 9.3 Examp
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254 Part Two Design Qualified worke
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256 Part Two Design Case study Serv
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258 Part Two Design 3 4 5 Step 1 -
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260 Part Two Design them. This mean
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262 Part Two Design Work measuremen
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264 Part Two Design Figure S9.1 Tim
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Key operations questions Chapter 10
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Chapter 10 The nature of planning a
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270 Part Three Planning and control
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276 Part Three Make-to-stock Planni
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Chapter 14 Enterprise resource plan
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Part Four IMPROVEMENT Even the best
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Risk mitigation actions Chapter 19
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Chapter 20 Organizing for improveme
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The Deming Prize Chapter 20 Organiz
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Part Five CORPORATE SOCIAL RESPONSI
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Notes on chapters 653 3 Sources inc
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Glossary 659 Breakthrough improveme
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failures (continued) estimates of o
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inventories (continued) de-coupling
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mitigation of ethical practice brea
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precedence diagrams 197-9, 481 prec
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esources 7-8 business continuity 59
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supply chains (continued) meaning 3
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