Mission/Strategy

1. Mission/Strategy • Mission - where you are going, what is our reason for existence • Strategy - how you are going to get there. Plans to accomplish the mission. © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J. 07458 Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 2-5

2. Mission • Organization’s purpose for being • Provides boundaries & focus • Answers ‘How can we satisfy people’s needs?’ • Expressed in mission statement © 1995 Corel Corp. © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J. 07458 Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 2-6

3. CSU-P Mission • The CSU-P is a regional, comprehensive, university distinguished by excellence, diversity, access and opportunity. The University offers a broad array of baccalaureate programs with a strong professional focus and a firm grounding in the liberal arts, blending theory and practice to prepare all graduates for success. The University also offers a select group of graduate programs that address regional needs. The University is a major educational resource for cultural enrichment and economic growth in southeastern Colorado.

4. Strategy • Action plan to achieve mission • Shows how mission will be achieved • Company has a business strategy • Functional areas have strategies © 1995 Corel Corp. © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J. 07458 Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 2-16

5. Mission/Strategy • Google mission © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J. 07458 Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 2-5

6. Company Mission Environmental Analysis SWOT Business Strategy Analysis Functional Area Strategies Functional Area Marketing Operations Fin./Acct. Decisions Decisions Decisions Strategy Process © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J. 07458 Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 2-10

7. Examples to Consider • Inkjet vs. laser printers • McDonalds vs. Texas Road House • JC Penny vs. the Gap • Bic vs. Cross Pen • Rockies vs. Sky Sox • Mfg house vs. custom house • Sears

8. OM Strategy Considerations • Therefore, an OM strategy: • Identifies and organizes the OM tasks • Makes the necessary choices within the OM function • Finds competitive advantage TM 2 - 8 (cont.)

10. OM Objectives • Low cost/price (cost) • High quality (differentiation) • Delivery (response) • Flexibility (response) • The following may be added • After sales service • Depth and breadth of product line

11. Low Cost/Price • Initial cost • Lifecycle cost • Maximum value as defined by customer • Does not imply low value or low quality

12. High Quality • Performance • Features • Reliability • Durability • Conformance • Serviceability • Appearance • Perceived quality

13. Delivery • Rapid response • Dependability of promises • Location as a value-added feature

14. Flexibility • Product changes - New products - Enhancements - Customization • Volume changes - Ramp-ups - Uncertain forecasts

15. After Sale Service • Speed to repair • Availability of parts • Self service

16. Depth and breadth of product line • Price range • Range of Features • Breadth - product categories • Depth - within category

17. Mission/Strategy • Cheesecake Factory © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J. 07458 Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 2-5

18. Operations Strategy • Configure the operating organization so that it obtains a competitive advantage. • An operating system is like any other system: • It can’t do everything well. • Instead…

19. Operations Strategy • It must be designed and managed so that: • It does certain very important things exceptionally well, • While place less emphasis on other, less important things.