• hSl • , •&
OPERATIONS STBATEGY
.
Fifth Edition
Nigel Slack
Michael Lewis
Pearson
Harlow, England • London • New York • Boston •San Francisco •Toronto •Sydney
Dubai • Singapore * Hong Kong • Tokyo • Seoul • Taipei • New Delhi
Cape Town • Säo Paulo • Mexico City• Madrid • Amsterdam • Munich • Paris• Milan
Contents
List of figures, tables and exhibits from case studies xi
Preface xix
Acknowledgements xxiii
Publisher's acknowledgements xxiv
Chapter 1 Operations strategy - developing resources and
processes for Strategie impact 1
Introduction 1
Why is Operations excellence fundamental to Strategie success? 2
What is strategy? 7
What is Operations strategy and how is it different from Operations
management? 9
What is the 'content' of Operations strategy? 25
The Operations strategy matrix 32
What is the 'process' of Operations strategy? 33
How is Operations strategy developing? 36
Summary answers to key questions 41
Further reading 43
Notes on the chapter 43
Chapter 2 Operations Performance 45
Introduction 45
Operations Performance can make or break any Organisation 46
Judging Operations Performance at a societal level? 48
Judging Operations Performance at a Strategie level 53
Judging Operations Performance at an operational level? 56
The relative importance of Performance objectives changes over time 68
Trade-offs - are they inevitable? 72
Targeting and Operations focus 80
Summary answers to key questions 87
Further reading 89
Notes on the chapter 89
Chapter 3 Substitutes for strategy 91
Introduction 91
Fads, fashion and the 'new' approaches to Operations 92
Total quality management (TQM) 93
Lean Operations 99
Business process reengineering (BPR) 105
SixSigma 109
CONTENTS
Some common threads 115
Summary answers to key questions 119
Further reading 120
Chapter 4 Capacity strategy 121
Introduction 121
What is capacity strategy? 122
The overall level of Operations capacity 122
The number and size of sites 133
Capacity change 135
Location of capacity 142
Summary answers to key questions 151
Further reading 152
Notes on the chapter 152
Chapter 5 Purchasing and supply strategy 154
Introduction 154
What is purchasing and supply strategy? 154
Do or buy? The vertical Integration decision 166
Contracting and relationships 172
Which type of arrangement? 181
Supply network dynamics 182
Managing suppliers over time 187
Purchasing and supply chain risk 190
Summary answers to key questions 193
Further reading 194
Notes on the chapter 195
Chapter 6 Process technology strategy 196
Introduction 196
What is process technology strategy? 197
Process technology should reflect volume and variety 202
The product-process matrix 208
The challenges of Information technology (IT) 213
Evaluating process technology 217
Summary answers to key questions 230
Further reading 231
Notes on the chapter 232
Chapter 7 Improvement strategy 233
Introduction 233
Operations improvement 233
Setting the direction 240
Importance-performance mapping 246
Developing Operations capabilities 251
Deploying capabilities in the market 263
CONTENTS
Summary answers to key questions 268
Further reading 270
Notes on the chapter 270
Chapter 8 Product and service development and Organisation 272
Introduction 272
Innovation, design and creativity 273
The Strategie importance of product and service development 277
Product and service development as a process 284
A market requirements' perspective on product and service development 293
An Operations resources perspective on product and service development 298
Summary answers to key questions 306
Further reading 307
Notes on the chapter 308
Chapter 9 The process of Operations strategy - formulation
and implementation 309
Introduction 309
Formulating Operations strategy 310
What is the role of alignment? 310
Maintaining alignment over time 314
What analysis is needed for formulation? 320
The challenges to Operations strategy formulation 323
How do we know when the formulation process is complete? 324
What is Operations strategy implementation? 326
Summary answers to key questions 338
Further reading 339
Notes on the chapter 340
Chapter 10 The process of Operations strategy - monitoring
and control 341
Introduction 341
What are the differences between operational and Strategie
monitoring and control? 342
How is progress towards Strategie objectives tracked? 345
How can the monitoring and control process attempt to control risks? 351
How does learning contribute to Strategie control? 358
Summary answers to key questions 366
Further reading 367
Notes on the chapter 368
Case studies 369
Aarens Electronic 373
Aztec Component Supplies 377
Carglass®: building and sustaining a customer-centric-organisation 379
X CONTENTS
Clever Consulting 393
Delta Synthetic Fibres (DSF) 395
Developing 'Savory Rosti-crisps' at Dreddo Dan's 401
Disneyland Resort Paris 405
Dresding Medical 412
Hagen Style 414
Hartford Building Society: to measure, or not to measure? 416
IDEO: service design (A) 422
McDonald's: half a Century of growth 441
Ontario Facilities Equity Management (OFEM) 447
Operations strategy at Galanz 451
Slagelse Industrial Services (SIS) 466
The Thought Space partnership 469
Turnround at the Preston plant 472
Zara's operating model 476
Zentriii 481
Index 483
