What is Operations Strategy? ·Operations Strategy -Determining how to best utilize the firm's resources to achieve corporate objectives. Major long-term structural issues -How big do we make the facilities? -Where do we locate them? -When do we build them? -What type of process(es)do we install to make the products? Operations Management 29 Operations Strategy Means Adding Value for the Customer Maximize value added Transformation Inputs process Outputs (customers and/or (goods and services) materials) ·How to add value: -Reduce product costs to customer. -Make the product more readily available. -Provide faster service. -Provide customers with additional relevant information. -Customize the product to the customer's specific needs. Operations Management 2-10 J5 Operations Management 2–9 What is Operations Strategy? What is Operations Strategy? What is Operations Strategy? • Operations Strategy –Determining how to best utilize the firm’s resources to achieve corporate objectives. • Major long-term structural issues –How big do we make the facilities? –Where do we locate them? –When do we build them? –What type of process(es) do we install to make the products? Operations Management 2–10 Operations Strategy Means Adding Value for the Customer Operations Strategy Means Operations Strategy Means Adding Value for the Customer Adding Value for the Customer • How to add value: –Reduce product costs to customer. –Make the product more readily available. –Provide faster service. –Provide customers with additional relevant information. –Customize the product to the customer’s specific needs