Operation Strategy: Specifies the means by which operations implements corporate strategy * Corporate strategy: Provides an overall direction and framework for carrying out all the organization’s function (Environmental scanning, core competencies, core processes, and global strategy) * Competitive capabilities: current performance along those dimensions that a process or supply chain actually has * Order Winner: a criterion the customers use to differentiate the services / products of a firm from those of others * Price (low prices), Flexibility (large variety), Quality (in-stock merchandise availability, customer service), Time * Order Qualifier: the minimum level of performance of an order winner that is required for a firm todo business in a market segment. Quality (Products and services. Focuses on quality)
Process Strategy * Process Decision: 1) Process Structure (Customer-contact position [services]), 2) Customer Involvement (low involvement, high involvement), 3) Resource Flexibility (Specialized, enlarged), 4) Capital Intensity (low and high automation) * Process Architecture: 1) Job process: low volume, high customized to specific needs of the customers. The process has highly flexible flow, with considerable divergence in production steps (flexible resources. Resources are organized by resource type, but not by product type. Each order is treated as a single unit, a job). Ex: Nike workshop for sponsored athletic shoes 2) Batch process: Some customization (orders come in batches, products differ from batch to batch, but are identical in a batch). Large volume, but not extremely high volume. Process flow is flexible, depending on customization. Ex: Extra wide leather shoes production, NIKEiD shoes 3) Line process: Products are almost standardized in large volume(not made for specific customer/order). All products flow