KR:%20Chapter%202

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KR Chapter 2

• Operations Strategy

2
Chapter Outline

• Introduction

3
Competitive Priorities

• Capabilities
• current
• needed
• planned

Figure 2.1
4
Chapter Outline

• Introduction
• Corporate strategy
• Core competencies
• Core processes

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Chapter Outline

• Introduction
• Corporate strategy
• Competitive priorities

6
Competitive Priorities

• Cost
• Quality
• High-performance design
• Consistent quality

• Flexibility
• Customization
• Variety
• Volume flexibility
• Time
• Fast delivery
• On-time delivery
• Development speed

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Speedster Innovators and Producers
Speedster Innovators Product Development Time
Old New
Honda Cars 5 yrs 3 yrs
ATT Phones 2 yrs 1 yr
Navistar Trucks 5 yrs 2.5 yrs
Hewlett-Packard Computer printers 4.5 yrs 22 months
Speedster Producers Product Order-to-finished goods Time
Old New
GE Circuit breaker boxes 3 wks 3 days
Motorola Pagers 3 wks 2 hrs
Hewlett-Packard Electronic testing equipment 4 wks 5 days
Brunswick Fishing reels 3 wks 1 wk
Matsushita Washing machines 360 hrs 2 hrs
Harley-Davidson Motorcycles 360 days lt 3 days
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As Time is Compressed, Prices Can Be Increased
Time Advantage Price Premium ()
Electrical Components 21 59
Locks 31 25
Writing papers 51 20
Commercial doors 91 100
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Chapter Outline

• Introduction
• Corporate strategy
• Competitive priorities
• New service or product development

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Development Strategies

• Beyond low prices and good quality
• Product variety
• Design
• Innovation
• Service
• Operation systems implications

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Service Package

• Supporting facilities
• Facilitating goods
• Explicit services
• Implicit services

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New Service or Product Development Process
Figure 2.2