Operations Strategy Assignment: Models and Frameworks

Learning Outcomes

This assignment consists of FIVE TASKS, which are focused on the two learning outcomes given below. They are based on the models/frameworks/conceptual ideas from Chapter 1 and Chapter 2 of the textbook by Slack & Lewis (Kindle Edition). You can also find these models in other printed editions of this textbook, however, the page numbers, Figure numbers, Table numbers might be different but that shouldn’t scare you from using them.  

Learning Outcome 1: Discuss alternate perspectives of operations strategy concepts.

Learning Outcome 2: Critically analyse main operations decision areas.

Read carefully the models/frameworks/concepts in the following Figures and Tables from the textbook by Slack & Lewis and apply each one of them on a new situation/example/case to complete Assignment 1.

1: Discuss the “four perspectives on operations strategy” in approx. 1000 words (max). You will need to study the textbook carefully and thoroughly to reflect an understanding of the concepts related to the four perspectives: top-down; bottom-up; operations resources; and market perspectives. “You discussion should analyse ‘how’ and ‘why’ these perspectives enable the development of operations strategy, and when (i.e. under which circumstances) these perspectives are most suited for developing operations strategies, by comparing their advantages/ disadvantages etc.”

2: In Figure 1.10, the market requirements perspective on operations strategy is summarised in terms of five generic performance objectives: quality, speed, dependability, flexibility and cost with a view to articulate market requirements in a way that will be useful to operations. (20 marks)

Note that the three operations used as examples in Table 1.2 have a different view of each of the performance objectives. For example, the mortgage service sees quality as being at least as much about the manner in which its customers relate to its service as it does about the absence of technical errors. The steel plant, on the other hand, while not ignoring quality of service, primarily emphasises product-related technical issues. The finance function, while valuing accuracy, also includes softer ‘trust’ and ‘relationship’ factors. Different operations will see quality (or any other performance objective) in different ways, and emphasise different aspects.

Apply this model of viewing different performance objectives for any TWO retail stores in New Zealand (Pak N’ Save, Countdown, The Warehouse, etc.), and compare how they differ from each other.

For a company such as “Pret A Manger”, it is possible to find some kind of relationship between each performance objective and every decision area. Figure 1.13, depicts some of the critical issues described in the example (please read the mini case from the textbook to get the complete ideas of the situation before looking at the operations strategy matrix in Figure 1.13). It is the interrelationship between the intersections (cells) of the matrix that are important to understand.

Create an operations strategy matrix for the retail store identified in Task 3, and mark the cells with appropriate number of stars (*) to give them differential priorities. Also explain the meanings of performance objectives in the context of your selected retail store.

Figure 2.11(a) shows the relative performance of several companies in the same industry in terms of their cost efficiency and the variety of products or services that they offer to their customers. Presumably, all operations would like to be able to offer very high variety while still having very high levels of cost efficiency. However, the increased complexity that a high variety of product or service offerings brings will generally reduce the operation’s ability to operate efficiently. One way of improving cost efficiency is to severely limit the variety on offer to customers. The spread of results in Figure 2.11(a) is typical exercise on Trade-off analysis. Operations A, B, C and D all have chosen a different balance between variety and cost efficiency. However, none is dominated by any other operation in the sense that another operation necessarily has ‘superior’ performance. Operation X, however, has an inferior performance because operation A is able to offer higher variety at the same level of cost efficiency, and operation C offers the same variety but with better cost efficiency. The convex line on which operations A, B, C and D lie is known as the ‘efficient frontier’. They may choose to position themselves differently (presumably because of different market strategies) but they cannot be criticised for being ineffective.