This is a draft cheat sheet. It is a work in progress and is not finished yet.
Strategy consists of 4 steps
o Define a primary task
o Assess core competencies
o Determine order qualifiers and order winners
o Position the firm
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Product Strategy->Process Strategy
Competitive Dimensions
Cost
Product Quality and Reliability
Delivery Speed
Delivery Reliability
Coping with Changes in Demand
Flexibility and New Product Introduction Speed
Other Product-Specific Criteria |
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Primary Task
a. Represents the purpose of the firm
b. Identifies the area in which it will be competing
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An effective operating model aligns
all business processes to serve critical customer needs. |
Strategic Operating Model
Cost
Fast Service
Flexibility
Quality |
The Essence of Business Process Design (BPD)
1.Process components
2.Process choice/configuration
3.Production/service strategies
4.Process control
Configuring the process architecture to satisfy customer desires in an efficient way
Customers can be both internal and external
Internal customer requirements must be aligned with the desires of the external customers in the business strategy as we have seen |
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Fundamental Strategic Questions
What product or service should we produce?
How should we plan to compete? |
Linking Processes to Strategy
a. Divide market into segments
b. Price, service, product characteristics, etc.
c. Evaluate order winners/qualifiers for target segment.
d. Translate order winners/qualifiers into process requirements.
e. Design processes to meet requirements
f. Equipment, facility, labor,
g. Design infrastructure to support processes.
h. Information system, accounting systems, management style, etc |
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Process Management
Step 1-Making Operational Trade-Offs
-Labor vs Responsiveness
Step 2-Overcome Inefficiencies
-Change current system
Step 3
-Evaluate Proposed Redesigns/New Technologies |
Process Management Step 2
Overcome Inefficiencies
-Change current system |
Process configuration
Configuration governs:
Where resources are deployed
The path of flow units
The structure of the network of activities and buffers
Process configuration:
Largely determines process capability
Is largely determined through process choice
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