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Copyright2006JohnWiley&Sons,Inc.BeniAsllaniBeniAsllaniUniversityofTennesseeatChattanoogaUniversityofTennesseeatChattanoogaIntroductiontoOperationsandIntroductiontoOperationsandSupplyChainManagement–Part2SupplyChainManagement–Part2OperationsManagement-6thEditionOperationsManagement-6thEditionChapter1Chapter1RobertaRussell&BernardW.Taylor,IIICopyright2006JohnWiley&Sons,Inc.1b-2LectureOutlineLectureOutlineStrategyFormulationStrategyFormulationCompetitivePrioritiesCompetitivePrioritiesOperations’RoleinCorporateStrategyOperations’RoleinCorporateStrategyStrategyandtheInternetStrategyandtheInternetStrategyDeploymentStrategyDeploymentCopyright2006JohnWiley&Sons,Inc.1b-3FourStepsforStrategyFourStepsforStrategyFormulationFormulationDefiningaprimarytaskDefiningaprimarytaskWhatisthefirminthebusinessofdoing?Whatisthefirminthebusinessofdoing?NeedstobeasbroadaspossibletocorrespondtotheNeedstobeasbroadaspossibletocorrespondtothebusiness’business’missionstatementmissionstatementAssessingcorecompetenciesAssessingcorecompetenciesWhatdoesthefirmdobetterthananyoneelse?Whatdoesthefirmdobetterthananyoneelse?DeterminingorderwinnersandorderqualifiersDeterminingorderwinnersandorderqualifiersWhatwinstheorder?Whatwinstheorder?Whatqualifiesanitemtobeconsideredforpurchase?Whatqualifiesanitemtobeconsideredforpurchase?PositioningthefirmPositioningthefirmHowwillthefirmcompete?Howwillthefirmcompete?Copyright2006JohnWiley&Sons,Inc.1b-4MissionStatement–IntelExampleMissionStatement–IntelExampleOurmissionOurmissionDelightourcustomers,employees,andshareholdersbyrelentlesslyDelightourcustomers,employees,andshareholdersbyrelentlesslydeliveringtheplatformandtechnologyadvancementsthatbecomedeliveringtheplatformandtechnologyadvancementsthatbecomeessentialtothewayweworkandlive.essentialtothewayweworkandlive.OurvaluesOurvaluesCustomerorientationCustomerorientationResultsorientationResultsorientationRisktakingRisktakingGreatplacetoworkGreatplacetoworkQualityQualityDisciplineDisciplineOurobjectivesOurobjectivesExtendoursilicontechnologyandmanufacturingleadershipExtendoursilicontechnologyandmanufacturingleadershipDeliverunrivaledmicroprocessorsandplatformsDeliverunrivaledmicroprocessorsandplatformsGrowprofitabilityworldwideGrowprofitabilityworldwideExcelincustomerorientationExcelincustomerorientationCopyright2006JohnWiley&Sons,Inc.1b-5CompetitivePrioritiesCompetitivePrioritiesCostCostQualityQualityFlexibilityFlexibilitySpeedSpeedCopyright2006JohnWiley&Sons,Inc.1b-6CompetitivePriorities:CompetitivePriorities:CostCostLincolnElectricLincolnElectricreducedcostsby$10millionayearfor10yearsreducedcostsby$10millionayearfor10yearsskilledmachineoperatorssavethecompanymillionsthatskilledmachineoperatorssavethecompanymillionsthatwouldhavebeenspentonautomatedequipmentwouldhavebeenspentonautomatedequipmentSouthwestAirlinesSouthwestAirlinesonetypeofairplanefacilitatescrewchanges,record-onetypeofairplanefacilitatescrewchanges,record-keeping,maintenance,andinventorycostskeeping,maintenance,andinventorycostsdirectflightsmeannobaggagetransfersdirectflightsmeannobaggagetransfers$30millionannualsavingsintravelagentcommissionsby$30millionannualsavingsintravelagentcommissionsbyrequiringcustomerstocontacttheairlinedirectlyrequiringcustomerstocontacttheairlinedirectlyCopyright2...