Strategic Operations Essay

OPERATIONS STRATEGY
Teacher: Gad Allon Contact: [ electronic mail protected ]Class 1 Description Framework for operations scheme Tailoring operations scheme Investor/External position of operations: – Operations Forensics – Associating to Financials ( ROIC tree ) Asset scheme. operational hedge and hazard mgmt. Sourcing scheme: Global webs and offshoring Strategic sourcing and provider dealingss Reading Swiss Watch Industry ( Ch1. p. 32 ) Peapod ( Ch. 13. p. 415 )

Hand-­??In ( Before category )

Undertaking Progress ( After category )

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Peapod

External position of the organization’s operations. Risk assessment Operational hedges Sourcing challenges Plan for following stairss

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Seagate Technology ( Ch. 12. p. 405 )

Simulation readying

Course Description and Aims
THE GOAL OF THIS COURSE is to understand how strategic operations determinations impact the public presentation of the house. The key will be to understand the nexus between the operating system constellations. the client experience. and the fiscal public presentation of the house. We will near operations scheme by taking a holistic position that incorporates competitory scheme. fiscal rating. and the client experience.

Operationss scheme is a program for developing assets and configuring procedures such that the ensuing competences maximize value for stakeholders. We focus on determinations and challenges that many houses face: measuring the attraction of a firm’s runing system from an investor/external position and a management/internal position. Then we study constructing competences in-­??house ( i. e. . puting in a 1 of 6

Operationss Strategy

Course Syllabus

portfolio of assets whose capacity. type. and location define the internal supply concatenation ) or purchasing them ( i. e. . developing and implementing a planetary sourcing scheme and incorporating external supply concatenation spouses ) . Finally. we put everything together utilizing an in-­??class squad simulation game.

First Assignment

As the class format is really intense. and in order to maximise value-­??added clip during category. it is critical that you prepare in progress for the first twenty-four hours of category. The assignment consists of three parts: ( 1 ) Read the Swatch instance. ( No assignment is due. ) ( 2 ) Read the Peapod instance and reply the undermentioned inquiry separately: Peapod instance assignment How attractive is Peapod’s operation from an external investing position. What is Peapod’s cost to carry through an order? I estimate the needed clip to fix as MAXIMUM 2 hours.

Do non pass excessive sums of clip seeking the “ultimate” or “correct” answer. as in there are many extra factors. non included in the instance. that may hold important bearing on the state of affairs. Rather. the most productive avenue is to familiarise yourself with the state of affairs. and reflect on the chief issues. Format: The write-­??up should non transcend two pages of typed text. The instance is merely due for the 2nd category. yet we anticipate that you will non hold clip during the first eventide of the class. ( 3 ) Write a paragraph with an thought for a undertaking. See guidelines for undertaking below. Each group will take among the undertakings suggested by its members.

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Rating
ASSIGNMENTS & A ; Scaling: The class you receive for the class is intended to attest your demonstrated proficiency in the class stuff. Proficiency will be estimated by mensurating your public presentation on: A. Individual: – Class part 15 % – Individual Peapod instance entry 15 % B. Team work: – Simulation game entry 15 % – Final undertaking or instance 55 %

Text and Course Materials
The class package and the text edition Operations Strategy: Principles and Practice by J. A. Van Mieghem. Other text editions that can give complementary point of views on operations scheme: 1. Operationss Strategy: Competing in the twenty-first Century. S. L. Beckman and D. B. Rosenfield. McGraw-­??Hill. 2007. 2. Operationss. Strategy. and Technology: Prosecuting the competitory border. R. Hayes. G. Pisano. D. Upton and S. Wheelwright. Wiley. 2005. 3. Operationss Strategy by Slack and Lewis. Prentice Hall. 2003. 4. Manufacturing Scheme by Hill. Irwin McGraw-­??Hill. 2000. Other concern books that may be of involvement to pupils taking this class: 1. Supply Chain Management: Scheme. Planning and Operationss by Chopra and Meindl. Prentice Hall. 2. Clock Speed by Charles H. Fine 3. Mass Customization by B. Joseph Pine 4. Balanced Sourcing by Laseter. Jossey-­??Bass Publishers. 1998.

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Guidelines for Team Undertaking
The concluding undertaking is done in groups. Groups that do non desire to make a undertaking can take to hand-­??in a finishing touch write-­??up on the Harley-­??Davidson instance in the text edition. Approach the undertaking as a “case study” of an organisation whose operations scheme you can analyse and better. Use the undermentioned standards in taking the organisation or the organisational unit: ( 1 ) Either your organisation or a rival. ( 2 ) You have entree to its fiscal informations ( balance sheet. income statement ) and perchance operational informations. ( 3 ) The organisation has an operational constituent ( fabrication. procurance or service ) . ( 4 ) In your sentiment. your organisation faces an operational challenge.

Format: The maximal length is 8 pages of text. ( 12pts double-­??spaced. ) and maximally 4 pages of back uping exhibits. IMPORTANT Note: At the terminal of each category. the pupils will be instructed on how to do advancement based on what they have learned in that category. Groups that will work during the hebdomad on their undertakings and put about an hr after every category are expected to hold the bulk of the work done by the terminal of the class.

For the concluding category you will necessitate to fix a short presentation with the chief inquiry. the attack. initial observations and following stairss. The undertaking is due on August 15th. Steering inquiries: ( 1 ) Is the operating system aligned with the scheme of the house? ( 2 ) Is the current operating system maximising shareholders’ value? ( 3 ) Does the current operating system hedge against hazard utilizing the right capacity scheme and sourcing scheme? ( 4 ) How would you better the system given your analysis above

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Course Syllabus

Class 1: Introduction & A ; A Framework for Operations Strategy Content: What is operations scheme? Introduce a model to depict a company’s operations scheme. The cardinal premiss is that an operations scheme must be evaluated in footings of the public presentation it delivers. This public presentation depends on the activity web and the plus package that operations puts in topographic point. We will discourse the end of operations scheme and a model to believe about operations scheme. Use the operations scheme model and seamster it to specific concern state of affairss. We will utilize the Swiss Watch Industry mini-­??case as our chief treatment vehicle. Swiss Watch Industry. mini-­??case 1 in Chapter 1. Be prepared to discourse the attach toing inquiries.

Read:

Class 2: Value: Investor/External Appraisal: ROIC and Operations Forensics Content: How to measure an operations scheme as an foreigner? Use public information together with personal estimations of cardinal resources and procedure to measure the attraction of an operations scheme. During this procedure. purify cardinal operational prosodies ( including “cost to serve” for the Peapod instance ) that create value. bind them to fiscal public presentation. and propose how to better profitableness over clip.

Prepare: Peapod. Chapter 13 in text edition. See steering inquiry under “First Assignment” . above. Hand-­??in: Peapod instance assignment.

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Class 3: Assets: Capacity Strategy. Risk Management. and Operational Hedging Content: How to plan a capacity scheme?

A major portion of operations scheme is make up one’s minding on a capacity scheme. This includes make up one’s minding on the size. timing. type. and location of each plus alteration. How can we construction resources and procedures to extenuate the firm’s hazard exposure? We approach risk direction as a procedure with focal point on operational hazards and methods to extenuate that hazard. We start by look intoing how resource webs can be structured to supply an operational hedge against demand hazard.

Prepare: Seagate Technology: Operational Hedging. Chapter 12 in text edition. Steering inquiries come with the instance. The aim of this instance is to analyse and optimise the impact of each asset’s ( location ) capacity on the overall value and hazard of the processing web. Format: Fix a impudent chart presentation with your recommendation and principle.

Class 4: Global Networks and Supplier Relationships Content:

How to outdo use the plus portfolio you merely built? Which factors should be considered when planing a planetary operational web? How can the construct of entire landed cost aid doing such determinations? We will play an in-­??class finishing touch simulation game. The aim is that each group identifies how to outdo manage a planetary web and the cardinal challenges faced in such scene. How do we take and pull off an appropriate provider portfolio? Deciding on which providers to utilize for peculiar goods or services and on how to pull off the provider relationship over clip is called strategic sourcing.

Prepare: The assignment for the in-­??class simulation game will be discussed and handed out in the old category. Format: Fix a impudent chart presentation with your recommendation and principle.