March 30, 2019

Kotler's Marketing 4.0: Moving from Traditional to Digital - Industry 4.0 Marketing Management




Highlighted Material


Purchasing Power Shifts from Individual to Social


Purchase Decision Making becomes Social instead of being exclusively Individual


In the world connected by internet and ubiquitous mobile phones, people are coming to know more of the opinion of their Friends, Family members, FaceBook Fans, and Twitter followers. They are caring more about the opinions expressed by this F-community. They also share their opinions and contribute to the massive pool of information. Many times the pool created by F-community is different from the image that companies and their brands tend to project. Customers believe and confirm to the social community opinion and disregard sponsored messages and information. Most personal purchase decisions now become social decisions.



Book

Marketing 4.0: Moving from Traditional to Digital


Philip Kotler, Hermawan Kartajaya, Iwan Setiawan
John Wiley & Sons, 05-Dec-2016 - Business & Economics - 208 pages

Marketing has changed forever—this is what comes next


Marketing 4.0: Moving from Traditional to Digital is the much-needed handbook for next-generation marketing. Written by the world's leading marketing authorities, this book helps you navigate the increasingly connected world and changing consumer landscape to reach more customers, more effectively. Today's customers have less time and attention to devote to your brand—and they are surrounded by alternatives every step of the way. You need to stand up, get their attention, and deliver the message they want to hear. This book examines the marketplace's shifting power dynamics, the paradoxes wrought by connectivity, and the increasing sub-culture splintering that will shape tomorrow's consumer; this foundation shows why Marketing 4.0 is becoming imperative for productivity, and this book shows you how to apply it to your brand today.

Marketing 4.0 takes advantage of the shifting consumer mood to reach more customers and engage them more fully than ever before. Exploit the changes that are tripping up traditional approaches, and make them an integral part of your methodology. This book gives you the world-class insight you need to make it happen.

Discover the new rules of marketing
Stand out and create WOW moments
Build a loyal and vocal customer base
Learn who will shape the future of customer choice


Every few years brings a "new" marketing movement, but experienced marketers know that this time its different; it's not just the rules that have changed, it's the customers themselves. Marketing 4.0 provides a solid framework based on a real-world vision of the consumer as they are today, and as they will be tomorrow. Marketing 4.0 gives you the edge you need to reach them more effectively than ever before.


TABLE OF CONTENTS
Acknowledgments xiii

Prologue: From Marketing 3.0 to Marketing 4.0 xv

About the Authors xix

Part I FUNDAMENTAL TRENDS SHAPING MARKETING

1 Power Shifts to the Connected Customers


From Exclusive to Inclusive

From Vertical to Horizontal

From Individual to Social


Purchase Decision Making becomes Social instead of being exclusively Individual


In the world connected by internet and ubiquitous mobile phones, people are coming to know more of the opinion of their Friends, Family members, FaceBook Fans, and Twitter followers. They are caring more about the opinions expressed by this F-community. They also share their opinions and contribute to the massive pool of information. Many times the pool created by F-community is different from the image that companies and their brands tend to project. Customers believe and confirm to the social community opinion and disregard sponsored messages and information. Most personal purchase decisions now become social decisions.

Summary: Horizontal, Inclusive, and Social

2 The Paradoxes of Marketing to Connected Customers 


Breaking the Myths of Connectivity 20

Summary: Marketing amid Paradoxes 28

3 The Influential Digital Subcultures 


Youth: Acquiring the Mind Share 32

Women: Growing the Market Share 35

Netizens: Expanding the Heart Share 37

Summary: Youth, Women, and Netizens 40

4 Marketing 4.0 in the Digital Economy 


Moving from Traditional to Digital Marketing 47

Integrating Traditional and Digital Marketing 52

Summary: Redefining Marketing in the Digital Economy 53

Part II NEW FRAMEWORKS FOR MARKETING IN THE DIGITAL ECONOMY

5 The New Customer Path 


Understanding How People Buy: From Four A’s to Five A’s 60

Driving from Awareness to Advocacy: The O Zone (O3) 66

Summary: Aware, Appeal, Ask, Act, and Advocate 69

6 Marketing Productivity Metrics 


Introducing PAR and BAR 74

Decomposing PAR and BAR 75

Driving Up Productivity 80

Summary: Purchase Action Ratio and Brand Advocacy Ratio 90

7 Industry Archetypes and Best Practices 91

Four Major Industry Archetypes 94

Four Marketing Best Practices 100

Summary: Learning from Different Industries 104

Part III TACTICAL MARKETING APPLICATIONS IN THE DIGITAL ECONOMY

8 Human-Centric Marketing for Brand Attraction 107

Understanding Humans Using Digital Anthropology 110

Building the Six Attributes of Human-Centric Brands 113

Summary: When Brands Become Humans 118

9 Content Marketing for Brand Curiosity 119

Content Is the New Ad, #Hashtag Is the New Tagline 121

Step-by-Step Content Marketing 124

Summary: Creating Conversations with Content 134

10 Omnichannel Marketing for Brand Commitment 137

The Rise of Omnichannel Marketing 139

Step-by-Step Omnichannel Marketing 145

Summary: Integrating the Best of Online and Offline Channels 149

11 Engagement Marketing for Brand Affinity 151

Enhancing Digital Experiences with Mobile Apps 153

Providing Solutions with Social CRM 156

Driving Desired Behavior with Gamification 160

Summary: Mobile Apps, Social CRM, and Gamification 165

Epilogue: Getting to WOW! 167

What Is a “WOW”? 167

Enjoy, Experience, Engage: WOW! 168

Are You Ready to WOW? 169

Index 171





What Is The Future Of Digital Marketing?




Chapter: Marketing 4.0: Enhancing Consumer-Brand Engagement through Big Data Analysis
Ana Isabel Jiménez-Zarco (Open University of Catalonia, Spain), Asher Rospigliosi (Brighton University, UK), María Pilar Martínez-Ruiz (University of Castilla la Mancha, Spain) and Alicia Izquierdo-Yusta (University of Burgos, Spain)
Source Title: Socio-Economic Perspectives on Consumer Engagement and Buying Behavior
Copyright: © 2017 |Pages: 24

Abstract
Marketing evolves in parallel with technology. Growing research is focusing on Marketing 4.0: the marketing of big data. Firstly, a depth knowledge about the evolution of marketing, an analysis of how a range of technology –not only the Internet and social media- can be used to design marketing strategies that enhance the brand-consumer relationship. Taking into account how consumers' behavior has been changing since the beginning of this century, this chapter seeks to review Marketing 4.0 concepts, analyzing how big data can be used to enhance the consumer-brand relationship.
https://www.igi-global.com/chapter/marketing-40/176001


From Marketing 1.0 To Marketing 4.0 – The Evolution of the Marketing Concept in the Context of the 21ST Century
in International conference KNOWLEDGE-BASED ORGANIZATION 24(2) · June 2018
Mircea Fuciu, Luigi Dumitrescu
Lucian Blaga University of Sibiu
Luigi Dumitrescu
Abstract
The evolution of the society and that of the information and communication technologies of the last decades have brought great changes in the business world and in the way, companies relate and view the consumers. In this context of the everchanging world of the 21st Century, we must see how the concept of marketing has evolved in the last century and how these shifts must be applied in today’s world. Our paper presents a brief the evolution of the marketing concept from the first ideas of marketing in the beginning of the last century and up to our days, we underline the shifts that have occurred in an interconnected world from an exclusive to an inclusive approach, from individual to social actions etc. We also point out the need to change and adapt the marketing strategy to deliver value to consumers, employees, to business partners and vision to shareholders. We consider that delving further into these aspects will bring forth further knowledge and allow the companies and academics to understand better the changes that will come in the years to come.

https://www.researchgate.net/publication/        326292993_From_Marketing_10_To_Marketing_40_-_The_Evolution_of_the_Marketing_Concept_in_the_Context_of_the_21ST_Century

March 28, 2019

Principles of Management - Subject Update


Basic Chapter Summaries of Principles of Management Based on Koontz and O'Donnell's Book

4 Ps of Management - 4 Essential Tasks in Business Management
Provide value - Procure inputs - Process inputs (Produce output) - People focus
http://nraomtr.blogspot.com/2015/05/4-ps-of-management-4-essential-tasks-in.html



2019

The 2 Cs of management excellence
What is good management? For years at McKinsey, we have applied science and measurement to that question.
https://www.mckinsey.com/business-functions/organization/our-insights/the-organization-blog/the-2-cs-of-management-excellence

Improving the management of complex business partnerships
March 2019 | Article
https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/improving-the-management-of-complex-business-partnerships

The agile manager
July 2018 | Article
https://www.mckinsey.com/business-functions/organization/our-insights/the-agile-manager

Management Tools & Trends
Five key trends emerged from Bain's survey of 1,268 managers.
By Darrell Rigby and Barbara Bilodeau
April 05, 2018 
https://www.bain.com/insights/management-tools-and-trends-2017/

Getting Teamwork Right at the Top
C-suite teams with four specific traits beat the competition.
By Phil Kleweno, Imeyen Ebong and Paul Stansik
October 19, 2018 
https://www.bain.com/insights/getting-teamwork-right-at-the-top/

The Leader's Guide to Corporate Culture
Boris GroysbergJeremiah LeeJesse PriceJ. Yo-Jud Cheng
HBR Jan - Feb 2018
https://hbr.org/product/recommended/an/R1801B-PDF-ENG



Productivity Focus of Management  - Industrial Engineering

Taylor - Narayana Rao Principles of Industrial Engineering
_______________

_______________
Download full paper: Full Paper - https://www.xcdsystem.com/iise/abstract/File7673/UploadFinalPaper_2569.pdf

June 2017

Change Management - How to manage the eight ‘change personalities’ at work?
https://www.theglobeandmail.com/report-on-business/careers/management/how-to-manage-the-eight-change-personalities-at-work/article35041096/

Making Decisions in Meetings
http://blog.lucidmeetings.com/blog/making-decisions-in-meetings

May 2017

How to Retain Employees Through 'Servant' Leadership
https://www.entrepreneur.com/article/289730


April 2017

By studying and writing on Principles of Management, I became the original author of Principles of Industrial Engineering, a Management Subject with foundation in engineering.

Basic and Detailed Principles of Industrial Engineering
http://nraoiekc.blogspot.com/2016/07/basic-principles-of-industrial.html

http://www.xcdsystem.com/iise/abstract/File7673/UploadFinalPaper_2569.pdf


March 2017

Leaders have to manage the current activity to change it to make it better

http://www.managementexchange.com/story/first-line-manager-leaders-must-manager-lead



March 2016

Seven Quality management principles (QMPs) 

by ISO  - Read them compulsorily if you have not read so far.
http://www.iso.org/iso/pub100080.pdf

One of the definitions of a “principle” is that it is a basic belief, theory or rule that has a major influence on the way in which something is done. “Quality management principles” are a set
of fundamental beliefs, norms, rules and values that are accepted as true and can be used as a basis for quality management.

The QMPs can be used as a foundation to guide an organization’s performance improvement. They were developed and updated by international experts of ISO/TC 176, which is responsible for
developing and maintaining ISO’s quality management standards.


The seven quality management principles



QMP 1 – Customer focus
QMP 2 – Leadership
QMP 3 – Engagement of people
QMP 4 – Process approach
QMP 5 – Improvement
QMP 6 – Evidence-based decision making
QMP 7 – Relationship management


These principles are not listed in priority order.  All are important and the relative importance
of each principle will vary from organization to organization and can be expected to change over time in the same organization.

Seven Principles of Supply Chain Management


Principle 1: Segment customers based on the ser­vice needs of distinct groups and adapt the supply chain to serve these segments profitably.

Principle 2: Customize the logistics network to the service requirements and profitability of customer segments.

Principle 3: Listen to market signals and align demand planning accordingly across the supply chain, ensuring consistent forecasts and optimal resource allocation

Principle 4: Differentiate product closer to the customer and speed conversion across the supply chain

Principle 5: Manage sources of supply strategically to reduce the total cost of owning materials and services

Principle 6: Develop a supply chain-wide technology strategy that supports multiple levels of decision making and gives a clear view of the flow of products, services, and information

Principle 7: Adopt channel-spanning performance measures to gauge collective success in reaching the end-user effectively and efficiently
http://www.supplychain247.com/paper/the_7_principles_of_supply_chain_management

Seven Principles of Change Management


Senders and Receivers
Resistance
Authority for Change
Value Systems
Incremental vs. Radical Change
The Right Answer Is Not Enough
Change Is a Process
https://www.prosci.com/change-management/thought-leadership-library/the-seven-principles-of-change-management


The APICS Principles of Operations Management consists of five classroom-based, instructor-led courses.

         The Principles of Inventory Management

         The Principles of Operations Planning

         The Principles of Manufacturing Management

         The Principles of Distribution and Logistics

         The Principles of Managing Operations


A HBR article on Negotiation
https://hbr.org/2003/10/nice-girls-dont-ask/

Free Open Access Book

http://open.lib.umn.edu/principlesmanagement/


TENDENCIES IN EVOLUTION OF 21ST CENTURY
MANAGEMENT
https://www.efst.hr/management/Vol20-Specissue/1-Buble%20-%20Management%20tendencies.pdf

THE PRINCIPLES OF MANAGEMENT OF EDUCATIONAL INNOVATIONS IN MODERN HIGHER EDUCATION INSTITUTION.
Source: In the World of Scientific Discoveries / V Mire Nauchnykh Otkrytiy . 2014, Vol. 60 Issue 11.11, p4244-4261. 18p.
Author(s): Danakin, N. S.; Shutenko, A. I.; Ospishchev, P. I.

Developing a Theory and Philosophy of Management
Chapter 1 of Pearson Book
https://www.pearsonhighered.com/assets/hip/us/hip_us_pearsonhighered/samplechapter/0205088155.pdf


November 2015

Innovation Excellence requires Ambidextrous Management
http://www.innovationexcellence.com/blog/2015/11/12/innovation-requires-ambidextrous-management/


September 2015
New and Updated articles in area

Systems Approach in Management - Very detailed treatment is now posted
http://nraomtr.blogspot.com/2014/12/systems-approach-in-approach.html

Execution is an important function of management

Planning and Execution - Theory and Practice
http://nraomtr.blogspot.com/2015/09/planning-and-execution-theory-and.html

Resourcing is an important activity for all managers to accomplish set goals

http://nraomtr.blogspot.com/2012/03/resourcing-function-of-management.html


May 2015

Negotiation: What Makes the Right Business Deal
http://www.forbes.com/sites/ianaltman/2015/05/05/negotiation-what-makes-the-right-business-deal/





Get the Boss to Buy In.

By: Ashford, Susan J.; Detert, James. Harvard Business Review. Jan/Feb2015, Vol. 93 Issue 1/2, p72-79.

Middle managers  gather valuable intelligence from direct contact with customers, suppliers, and colleagues; they can often see when the market is ripe for a certain offering, for instance, or spot signs that a partnership won't work. But in a top-down culture, they may not voice their ideas and concerns -- and even when they do, they often struggle to persuade the people at the top.


The authors suggest that middle managers should tailor their pitch to the goals, values, and knowledge of decision makers; frame the issue to show how it supports a strategic goal; manage emotions (their own and their audience's); get the timing right by, say, attending to a boss's preoccupations or watching larger trends; involve others, both in and out of their networks; and  adhere to organizational norms, such as how leaders prefer to receive information.


MANAGING YOUR MISSION-CRITICAL KNOWLEDGE.

By: IHRIG, MARTIN; MACMILLAN, IAN. Harvard Business Review. Jan/Feb2015, Vol. 93 Issue 1/2, p80-87. 8p. 2 Color Photographs, 2 Diagrams.

Large-scale, sustainable growth is  possible when people take insights from one knowledge domain and apply them in another -- when deep technical expertise in one business unit is applied in a different business unit, for example, or when a best-in-class marketing group pulls a product development unit into the 21st century by sharing market insights gleaned from customer data.

The authors describe how to map your organization's strategic knowledge.  When knowledge assets are placed in a grid along two dimensions -- unstructured (tacit) versus structured (explicit) and undiffused (restricted) versus diffused (shared) -- it becomes easier to manage them for future competitive advantage.





Playbook - AMA NET

Interesting Source for Management Articles
http://playbook.amanet.org/

Managing Power Dynamics in International Negotiations
BY YADVINDER RANA
About The Author: Yadvinder S. Rana is Professor of Cultural Management at the Catholic University in Milan, Italy, lecturer on intercultural negotiation and influence in leading international business schools, and founder of Neglob, a management consultancy firm that assists companies in international negotiations and global teams performance improvement. For more information about Rana and his new book, The 4Ps Framework: Advanced Negotiation and Influence Strategies for Global Effectiveness, please visit www.neglob.com.
http://playbook.amanet.org/managing-power-dynamics-in-international-negotiations/




The New Rules of Motivation: Unleash Employee Reciprocity
BY RODD WAGNER
About The Author: Rodd Wagner is the New York Times bestselling author of the new book Widgets: The 12 New Rules for Managing Your Employees As If They’re Real People (McGraw-Hill, April 2015).
http://playbook.amanet.org/the-new-rules-of-motivation-unleash-employee-reciprocity/

Only 10% are great managers.
Around 35% OK.
http://www.fastcoexist.com/3044630/this-may-not-surprise-you-only-10-of-managers-have-what-it-takes-to-be-managers



Principles of Management - Subject Update - 2014


Updated  29 March 2019,  19 Sep 2017,  7 June 2017,  7 May 2017,  8 April 2017,   12 March 2017, 26 Mar 2016, 16 Feb 2016, 11 Dec 2015

March 26, 2019

Pay for Performance

Human Resource Management Revision Article Series
Pay for Performance existed from the piece rate systems and it exists now also in various forms as incentive pay, merit pay and bonuses.

Does PFP Work?

Bernardin concludes the discussion with the statement that PFP systems can be effective if they are tailored to particular work situations and strategies and contribute to high-probability estimates by employees concerning their effort and their performance and their performance and desired outcomes. Vroom's model of motivation and goal setting theories have a great deal of predictive power in the area of PFP systems

A well designed PFP system should lead to a higher degree of individual or group motivation and result in productivity improvement and lower costs.

But the increased production can come with certain disutilities. The quality may come down and it may increase costs of inspection. It could lead to unsafe and unhealthy behaviors.

The pay differences may not be accepted as fair and may lead to some conflict.

PFP Systems are effective when;

1. Employees value tangible outcomes like money and prizes.
2. The reward or outcome is preferred to other possible rewards.
3. The performane of the employees measurable.
4. Employee is capable of controlling the rate of output and has the capability of increasing the absolute output.
5. Employee is also aware that he can increase the output through his actions.
6. Employee is also aware that he will get increased reward by increasing output.
7. The performance rewarded is compatible with the goals of the organization

PFP Systems and Plans

Individual Plans

Merit pay

Incentive pay

Sales incentive plans


Performance Bonuses

performance bonuses are one-time payments based on performance. The bonus does not add to the base pay and as it is paid at one time, it would give the feeling of a large sum and may have different motivation effect than merit pay plans that pay periodically.

Group Incentive Plans

Profit sharing

Gain sharing

- Scanlon plan
- Rucker plan
- IMPROSHARE
- Winsharing

Employee Stock Option Plans

Managerial and Executive Incentive Pay


Payments for Entrepreneurial Talent

There is good amount of promotional activity for entrepeneurship and some employees may be interested in taking up their own ventures. Companies are coming out with innovative schemes to support such aspirations of employees. At IBM, employees can submit business plans for IBM risk capital. Employees can negotiate a share of the profits.


Performance Review Aligns Employees To Individual Goals

Often called pay-for-performance (P4P), the concept is to build a culture of top performers by aligning goals, performance, and rewards across an entire organization: Head HR, Skillsoft
http://www.businessworld.in/article/Performance-Review-Aligns-Employees-To-Individual-Goals-/26-02-2019-167583/


Updated 27 Feb 2019, 14 December 2011

March 23, 2019

March - Management Knowledge Revision Plan with Links




___________

Henry Fayol

The Engineering Manager who provided the modern description of Industrial Management.
Planning - Organizing - Commanding - Coordinating - Control



















Picture Source:
http://en.wikipedia.org/wiki/Henri_Fayol

___________

March 1st week  (1 March  to 5 March)

Analyzing Competitors
http://nraomtr.blogspot.com/2011/12/analyzing-competitors.html
Strategy of Market Leader
http://nraomtr.blogspot.com/2011/12/strategy-of-market-leader.html



Marketing Strategies for Challenger Firms 
http://nraomtr.blogspot.com/2011/12/marketing-strategies-for-challenger.html
Competitive Strategies for Followers and Nichers
http://nraomtr.blogspot.com/2011/12/competitive-strategies-for-followers.html



Managing Product Lines and Brands
http://nraomtr.blogspot.com/2011/12/managing-product-lines-and-brands.html
Marketing Strategy for New Industry Products
http://nraomtr.blogspot.com/2011/12/marketing-strategy-for-new-industry.html




Marketing Management for Service Firms
http://nraomtr.blogspot.com/2011/12/marketing-management-for-service-firms.html
Pricing Strategy and Tactics 
http://nraomtr.blogspot.com/2011/12/pricing-strategy-and-tactics.html


Marketing Channel Management – Important Issues
http://nraomtr.blogspot.com/2011/12/marketing-channel-management-important.html
Managing Wholesaling and Retailing Network
http://nraomtr.blogspot.com/2011/12/managing-wholesaling-and-retailing.html



March 2nd week ( 8 to 12)



Marketing Communication: Channels and Promotion Tools
http://nraomtr.blogspot.com/2011/12/marketing-communication-channels-and.html
Advertising
http://nraomtr.blogspot.com/2011/12/advertising.html



Sales Promotion 
http://nraomtr.blogspot.com/2011/12/sales-promotion.html
Marketing Public Relations
http://nraomtr.blogspot.com/2011/12/marketing-public-relations.html


Sales Process and Sales Training
http://nraomtr.blogspot.com/2011/12/sales-process-and-sales-training.html
Direct Marketing
http://nraomtr.blogspot.com/2011/12/direct-marketing.html




Online Marketing
http://nraomtr.blogspot.com/2011/12/online-marketing.html
Marketing and New Product Development
http://nraomtr.blogspot.com/2011/12/marketing-and-new-product-development.html



International and Global Marketing
http://nraomtr.blogspot.com/2011/12/international-and-global-marketing.html
Sales Force Management
http://nraomtr.blogspot.com/2011/12/sales-force-management.html


March 3 week  (15 to 19)

Developing Enterprisewide or Company Wide Marketing Orientation
http://nraomtr.blogspot.com/2011/12/developing-enterprisewide-or-company.html
Management of Marketing Department and Function
http://nraomtr.blogspot.com/2011/12/management-of-marketing-department-and.html

Operations Management  Revision Starts (16 March)


Introduction to the Field of Operations Management
https://nraomtr.blogspot.com/2011/12/business-education-is-incomplete.html
Operations Strategy and Competitiveness - Review Notes
http://nraomtr.blogspot.com/2011/12/for-company-to-be-considered-world.html

Optimizing the Use of Resources with Linear Programming
http://nraomtr.blogspot.com/2011/12/linear-programming-or-lp-is-one-of-most.html
Learning Curves - Review Notes
http://nraomtr.blogspot.com/2011/12/learning-curves-review-notes.html

Operations Project Management
http://nraomtr.blogspot.com/2011/12/project-is-series-of-related-jobs-or.html
Product Design - Review Notes
http://nraomtr.blogspot.com/2011/12/product-design-review-notes.html


Process Analysis - Operations Management
http://nraomtr.blogspot.com/2011/12/process-analysis.html
Manufacturing Process Selection and Design
http://nraomtr.blogspot.com/2011/12/manufacturing-process-selection-and.html

March 4 Week  (22 to 26 )

Facility Layout - Review Notes
http://nraomtr.blogspot.com/2011/12/facility-layout-review-notes.html
Product Design and Process Selection—Services
http://nraomtr.blogspot.com/2011/12/product-design-and-process.html

Total Quality Management: and Six Sigma
http://nraomtr.blogspot.com/2011/12/total-quality-management-focus-on-six.html
Process Capability and Statistical Quality Control
http://nraomtr.blogspot.com/2011/12/process-capability-and-statistical.html
Operations Consulting and Reengineering
http://nraomtr.blogspot.com/2011/12/operations-consulting-and-reengineering.html

24 March - Birthday - Martin Shubik - Economics Professor - Yale University

Supply-Chain Strategy - Review Notes
https://nraomtr.blogspot.com/2011/12/supply-chain-strategy-review-notes.html
Strategic Capacity Management
http://nraomtr.blogspot.com/2011/12/strategic-capacity-management.html


Just-in-Time and Lean Systems - Review Notes
http://nraomtr.blogspot.com/2011/12/just-in-time-and-lean-systems-review.html
Forecasting - Operations Management Review Notes
http://nraomtr.blogspot.com/2011/12/forecasting-operations-management.html


Aggregate Sales and Operations Planning - Review Notes
http://nraomtr.blogspot.com/2011/12/aggregate-sales-and-operations-planning.html
Inventory Control - Review Notes for Chase et al.
http://nraomtr.blogspot.com/2011/12/inventory-control-review-notes-for.html

29 March
Subject Update: Principles of Management

30 March
Subject Update: Marketing Management

To April - Management Knowledge Revision


Industrial Engineers support Engineers and Managers in Efficiency Improvement of Products, Processes and Systems




One Year MBA Knowledge Revision Plan

January  - February  - March  - April  - May   -   June

July  - August     - September  - October  - November  - December


March - Birthdays - Management Scholars


1
2
3 - Lyndall Urwick (1891)
4
5 - Edgar Schein (1928),  Stuart Anspach Umpleby (1944)
6 - Raymond Gilmartin (1941
7
8 - Warren Bennis (1925), Nirmalya Kumar (1960)
9
10 - Kenneth R. French (1954)
11
12
13
14 - T.V. Rao (1946)
15 - Rosabeth Moss Kanter (1943)
16 - Ferdinando Pennarola (1963)
17
18 - Water A. Shewart (1891)
19
20 -  Frederick Taylor (1856), Kim B. Clark (1949),  Marshall Goldsmith (1949)
21
22
23
24 - Martin Shubik (1926)
25 - David Meerman Scott (1961)
26 - Larry Page (1973)  http://www.biography.com/people/larry-page-12103347
27
28
29 - Sam Walton (1918)
30 - Arthur White (1924),   Dr. Arno Antlitz (1970)


31

Updated 16 March 2019,  3 March 2017,  25 March 2016











Operations Management - Summaries - Chapters, Topics, Sub-Sections,Concepts



1. Introduction to the Field  of Operations Management

Chapter Summary
Chapter outline

Operations Management—A Critical Responsibility of Every Manager
Efficiency Defined
Effectiveness Defined
Value Defined

What is Operations Management?
Operations Management (OM) Defined

Transformation Processes
Transformation Process Defined
Differences Between Services and Goods

OM in the Organizational Chart

Operations as Service
Core Services Defined
Value-Added Serviced Defined

Why is Operations Not Perceived as Important?

Historical Development of OM
JIT and TQC
Mass Customization Defined
Manufacturing Strategy Paradigm
Service Quality and Productivity
Total Quality Management and Quality Certification
Business Process Reengineering


2. Operations Strategy and Competitiveness

Chapter Summary

Competitive Dimensions
The Notion of Trade-Offs
Plant-within-a-Plant (PWP) Defined
Straddling Defined
Order Winners and Qualifiers
Order Winner Defined
Order Qualifiers Defined
The Marketing-Operations Link

The Corporate Strategy Design Process
The Financial Perspective
The Customer Perspective
The Internal Perspective
The Learning and Growth Perspective

Strategic Fit—Fitting Operational Activities to Strategy
Activity-System Maps Defined
A Framework for Operations Strategy in Manufacturing
Core Capabilities Defined
Developing a Manufacturing Strategy
Operations Strategy in Services
Internet Compliments Strategy

Attacking Through Operations

Productivity Measurement
Key Performance indicators (KPI) Defined
Productivity Defined
How Does Wall Street Evaluate Operations Performance?

Conclusion


Learning Curves


Application of Learning Curves
Learning Curve Defined
Individual Learning Defined
Organizational Learning Defined

Plotting Learning Curves
Logarithmic Analysis
Learning Curve Tables
Estimating the Learning Percentage
How Long Does Learning Go On?

General Guidelines for Learning
Individual Learning
Organizational Learning


3. Project Management

Chapter Summary 

What is Project Management?
Project Defined
Project Management Defined

Structuring Projects
Pure Project
Functional Project
Matrix Project

Work Breakdown Structure
Project Milestones Defined
Work Breakdown Structure Defined
Activities Defined

Project Control Charts
Gantt Chart Defined

Network-Planning Models
Critical Path Defined
CPM With a Single Time Estimate
Immediate Predecessors Defined
Slack Time Defined
Early Start Schedule Defined
Late Start Schedule Defined
CPM with Three Activity Estimates
Maintaining Ongoing Project Schedules

Time-Cost Models
Time Cost Models Defined
Minimum-Cost Scheduling (Time-Cost Trade-Off)

Managing Resources
Tracking Progress

Cautions on Critical Path Analysis

Conclusion

4. Product Design

The Product Design Process

The Product Development Process

Economic Analysis of Product Development Projects

      Build a Base-Case Financial Model
      Sensitivity Analysis to Understand Project Trade-offs

Designing for the Customer

      Quality Function Development
      Value Analysis/Value Engineering

Designing Products for Manufacture and Assembly

       How Does Design for Manufacturing and Assembly (DFMA) Work?

Measuring Product Development Performance

Conclusion


5. Process Analysis  -  Summary


I. Process Analysis

A. Process Defined

B. Analyzing a Las Vegas Slot Machine

C. Cycle Time Defined

Utilization Defined
Process Flowcharting

III. Types of Processes

Buffering, Blocking, Starving, and Bottleneck Defined
Make-to-Order, Make-to-Stock, and Hybrid Processes Defined
Pacing Defined

Buffering refers to a storage area between stages where the output of a state is placed prior to being used in a downstream stage.

Blocking occurs when the activities in the stage must stop because there is no place to deposit the item just completed.

Starving occurs when the activities in a stage must stop because there is no work.



IV. Measuring Process Performance

A. Productivity and Efficiency Defined

B. Run Time, Setup Time, and Operation Time Defined

C. Throughput Time and Throughput Rate Defined

D. Process Velocity or Throughput Ratio Defined

E. Value-Added Time Defined

Little's Law Defined
Process Analysis Examples

A. A Bread-Making Operation

B. A Restaurant Operation

Planning a Transit Bus Operation
Process Throughput Time Reduction

Case: Analyzing Casino Money – Handling Processes


Job Design Decisions
Job Design Defined

Behavioral Considerations in Job Design
Degree of Labor Specialization
Specialization of Labor Defined
Job Enrichment
Job Enrichment Defined
Sociotechnical Systems
Sociotechnical Systems Defined

Physical Considerations in Job Design
Work Physiology Defined
Ergonomics Defined

Work Methods
A Production Process
Workers at a Fixed Workplace
Workers Interacting with Equipment
Workers Interacting with Other Workers

Work Measurements and Standards
Work Measurement Techniques
Work Measurement Defined
Work Sampling Compared to Time Study
Time Study Defined
Predetermined Motion Time Data Systems Defined
Elemental Data Defined
Normal Time Defined
Standard Time Defined
Work Sampling Defined

Financial Incentive Plans
Basic Compensation Systems
Individual and Small-Group Incentive Plans
Organizationwide Plans

Conclusion

Job Design and Work Measurement 


Job Design Decisions
Job Design Defined

Behavioral Considerations in Job Design
Degree of Labor Specialization
Specialization of Labor Defined
Job Enrichment
Job Enrichment Defined
Sociotechnical Systems
Sociotechnical Systems Defined

Physical Considerations in Job Design
Work Physiology Defined
Ergonomics Defined

Work Methods
A Production Process
Workers at a Fixed Workplace
Workers Interacting with Equipment
Workers Interacting with Other Workers

Work Measurements and Standards
Work Measurement Techniques
Work Measurement Defined
Work Sampling Compared to Time Study
Time Study Defined
Predetermined Motion Time Data Systems Defined
Elemental Data Defined
Normal Time Defined
Standard Time Defined
Work Sampling Defined

Financial Incentive Plans
Basic Compensation Systems
Individual and Small-Group Incentive Plans
Organizationwide Plans

Conclusion

6. Manufacturing Process Selection and Design

Chapter Outline

Process Selection
Types of Processes
Job Shop Defined
Batch Shop Defined
Assembly Line Defined
Continuous Flow Defined
Process Flow Structures
Product-Process Matrix
Product-Process Matrix Defined

Break-Even Analysis
Specific Process Equipment Selection

Manufacturing Process Flow Design

Conclusion


7.  Service Process Selection and Design

Chapter outline

The Nature of Services
Service Businesses and Internal Services
Facilities-Based Services Defined
Field-Based Services Defined
A Customer-Centered View of Service Management

An Operational Classification of Services
High and Low Degree of Customer Contact Defined

Designing Service Organizations
Service Strategy: Focus and Advantage

Structuring the Service Encounter: Service-System Design Matrix
Strategic Uses of the Matrix

Service Blueprinting and Fail-Safing
Service Blueprint Defined
Poka-Yokes Defined

Three Contrasting Service Designs
The Production-Line Approach
The Self-Service Approach
The Personal-Attention Approach

Applying Behavioral Science to Service Encounters

New Service Development Process

Service Guarantees as Design Drivers
Service Guarantee Defined

Conclusion


Product Design - Review Notes

Designing a product or service or buying the design or getting the design in case of contract manufacturer is what brings into existence a business entity in the first place and then onwards expansion occurs as new product units (Finished goods SKUs),  business lines and SBUs.

New product design and development activity is a combined effort of three major functions: Marketing, New product development (Design and Development) and Manufacturing. Marketing provides customer viewpoint, product development links the customer requirements and technical scope into product, manufacturing provides the production view to be captured into product design and process plan. These three functions are supported by Industrial Engineering Function to make the design more efficient economically.

Chase, Jacobs, Acquilano identified Concept development, Product planning, Product/Process Engineering and Pilot production/Ramp-up as significant stages in introducing a new product into market.

In the concept development, the product architecture is specified taking into consideration the new customer needs as identified by the marketing function. The product architecture converts the functional requirements of the product into product's components and subassemblies  that will provide the functions as a group. The product architecture is subjected to market evaluation and project evaluation. If  it passes this gate, approval is given for making a development sample of the product without detailed engineering. This product is subjected to technical testing and marketing testing and once again project evaluation is done. If it clears this second gate of customer acceptance of the development sample, detailed engineering is approved. Based on the detailed engineering, prototypes are made. Another round of technical and market evaluations are conducted. Clearing of this gate would result in approval for pilot plant. The pilot plan would produce the actual production output and a test marketing is now done for a final demand assessment. This final demand assessment is the basis for capacity decisions of the commercial plant.

In 11th Edition (2206), they described the generic process of new product development as

Planning,
Concept development,
System level design,
Design detail,
Testing and refinement, and
Production ramp-up

During concept development experimental prototypes are built and tested.

After detail design, prototypes are once again built this time with the components as specified in the detail design but not exclusively using processes specified for commercial production. These prototypes are used for technical testing of the detailed design and market tests for product acceptance.


My personal thought is that generic process of new product development function must start with preparation.

Preparation Phase or Activity of New Product Development Function  (New Addition by Me)


During this activity, the new product development department develops it capability to develop new products. It includes monitoring research taking place in the areas related to its current and potential product portfolio by subscribing and studying the research journals, attending research conferences, going through scientific and technical magazines, and handbooks. These activities would also help the department to monitor the development activities being undertaken by other organizations. Patents applied for and issues have also to be monitored by the department. Some research may be undertaken by the department or it may sponsor research in academic institutions or public or private research institutions. It will be depute its designers and developers to various training programs related to the process and management of new product development.

Concurrent Engineering


Concurrent engineering approach made possible by computer aided design and the option for making the designs-in-process visible to other departments made possible for more concurrent activities in the design process. Whereas earlier, these processes were serial, in the sense, manufacturing can't gives its view until a design was finalized and sent to it for comments by the design department. But now, the designs are visible to the manufacturing on real time basis and their comments can be given and activities at their end can commence without delay involved due to lack of information and formal handover procedures.

Industrial Design


Designing products for ease of customer use and aesthetics developed as a separate subject termed Industrial design.

Quality Function Deployment


It is a process involving marketing, design engineering and manufacturing to interact with the customers and get their voice into the new product or redesign of the existing product. In this activity, the customer requirements are found out, their priority is determined and customers are asked to compare the company's product with competitor's product in the terms of satisfying the customer. The redesign of the product is carried out to increase customer satisfaction with product and once again customers are asked to evaluate the new product and competitor's product as well as the earlier version of the company's product.

Product Design Efficiency Engineering

Value Analysis - Value Engineering (VAVE)

Effectiveness and efficiency are the twin dimensions that are there in every business decision. Once effectiveness decisions, those. which are required by the customers in terms of functional benefits and aesthetic benefits are finalized, the efficiency decisions are to be taken. The product designs have to be subjected to efficiency analysis and engineering. Value engineering is currently the popular technique for efficiency engineering. There are ideas in method study and cost reduction areas also for product design efficiency evaluation. But most of them are incorporated into value engineering also. Value engineering is a cost reduction method where the cost reduction benchmark is obtained by finding the lowest cost at which a similar function is being performed.

Designing Products for Manufacture and Assembly (DFMA)


Product design has to ensure that manufacturing and assembly feasibility and cost are appropriately considered in the design process.

Reducing the number of parts is an important concern of DFMA. For this purpose for each separate part, the following questions are to be answered by the designer.

1. Does the part move relative to all other parts?
2. Must the part be made of different material?
3. Must the part be separate from all other parts to allow the disassembly of the product for adjustment or maintenance?

Chapter Outline

The Product Design Process

The Product Development Process

Economic Analysis of Product Development Projects

      Build a Base-Case Financial Model
      Sensitivity Analysis to Understand Project Trade-offs

Designing for the Customer

      Quality Function Development
      Value Analysis/Value Engineering

Designing Products for Manufacture and Assembly

       How Does Design for Manufacturing and Assembly (DFMA) Work?

Measuring Product Development Performance

Conclusion
Summaries of All Chapters of the Book Product Design and Development by Karl Ulrich and Steven Eppinger

Product Design and Development - Summary Chapters


Presentation slides
http://doc.mbalib.com/view/367473bbc59f364dbfc442e3af6dbd9c.html

Summaries of all Chapters of Operation Management

Updated  24 March 2019,   17 Mar 2016  5 Feb 2015,  6.12.2014,  8 Sep 2013,

MBA Core Management Knowledge - One Year Revision Schedule

Value Engineering - Recent Developments



Value Engineering - Research - Dissertations and Papers



Implementation of Value Engineering for Construction Efficiency
Mukti Weni Harini, Erizal and Meiske Widyarti
Asian Journal of Applied Sciences (ISSN: 2321 – 0893)
Volume 06 – Issue 02, April 2018



Article first posted on 25 April 2015

Take a system-wide view as part of Value Engineering and identify s the weak link in
a chain of components. If the weak link is performing at the desired level, other
components in the product might be over engineered. Examine the design of the other components for reducing the cost.

On the other hand, improving the characteristics of the weak link could increase the overall performance of the system and may give a higher performance system at a lower cost.
http://argoconsulting.com/content/wp-content/uploads/2015/03/Argo_ValueEngineering_FINAL-March-20151.pdf

Integrated Construction Value Engineering
http://managementsolutionsllc.com/articles/integrated-value-engineering-delivering-value-across-the-project-lifecycle/


Value Engineering Risk Analysis
http://www.wsdot.wa.gov/publications/fulltext/CEVP/VERA.pdf


Value Engineering of Divan
http://www.ijirset.com/upload/2014/october/24_Application.pdf




Industrial Engineering Knowledge Revision Plan - One Year Plan


January - February - March - April - May - June



July - August - September - October - November - December

Updated on 24 March 2019,  25 April 2015

Operations Management - Review Notes - List of Chapters

Text Book
Operations Management for Competitive Advantage

Richard B. Chase, University of Southern California
F. Robert Jacobs, Indiana University–Bloomington
Nicholas J. Aquilano, University of Arizona
McGraw-Hill
ISBN: 0072506369
Copyright year: 2004


Review Notes for Quick Revision of the chapters in the Operations Management Text. 





SECTION ONE: OPERATIONS STRATEGY AND MANAGING CHANGE

1. Introduction to the Field
2. Operations Strategy and Competitiveness
Technical note 2 Learning Curves
3. Project Management

SECTION TWO: PRODUCT DESIGN AND PROCESS SELECTION

4. Process Analysis
Technical note 4 Job Design and Work Measurement
5. Product Design and Process Selection—Manufacturing
Technical note 5 Facility Layout
6. Product Design and Process Selection—Services
Technical note 6 Waiting Line Management
7. Total Quality Management: Focus on Six Sigma
Technical note 7 Process Capability and Statistical Quality Control
8. Operations Consulting and Reengineering

SECTION THREE: SUPPLY CHAIN DESIGN
(Managerial Briefing Electronic Commerce and E-Ops©)

9. Supply Chain Strategy
10. Strategic Capacity Management
Technical note 10 Facility Location
11. Just-in-Time and Lean Systems

SECTION FOUR: PLANNING AND CONTROLLING THE SUPPLY CHAIN
(Managerial Briefing Enterprise Resource Planning Systems)

12. Forecasting
13. Aggregate Sales and Operations Planning
14. Inventory Control
15. Material Requirements Planning
16. Operations Scheduling
Technical note 16 Simulation
17. Synchronous Manufacturing and Theory of Constraints

SUPPLEMENTS


B. Financial Analysis
C. Operations Technology

Many articles were revised in 2015 using the 12th Edition of the Book

More Detailed Description

Operations Management - Summaries - Chapters, Topics, Sub-Sections,Concepts
https://nraomtr.blogspot.com/2019/03/operations-management-summaries.html



Supply Chain Management - Revision Notes of Chapters of Chopra and Meindl Book

MBA Knowledge Revision Schedule


January  - February  - March  - April  - May   -   June

July       - August     - September  - October - November  - December


Updated 24 March 2019,  27 March 2015,  27 June 2014

March 16, 2019

Operations Management - Important Points for Quick Revision




Introduction to the Field  of Operations Management

The goal of operations management is wealth creation.
It is done by supplying quality goods and services effectively and efficiently


The essence of operations management: creating great value to the customer while reducing the cost of delivering the good or service.

In the context of this book, "operations" refers to the processes that are used to transform the resources employed by a firm into products and services desired by the customers. "Supply" refers to how materials and services are moved to and from the transformation processes of the firm.


While marketing uncovers needs of people in general and uncovers needs of people at a particular point and books orders for the goods and services, it is the operations function of a business firm that develops goods and services and produces and delivers them to customers at the place where they desire the delivery.

The historical roots of the development of OM are traced from scientific management through the moving assembly line, the Hawthorne studies, and on to today's current manufacturing topics including supply chain management and e-commerce. 

In operations management, three categories of decisions are taken.

Strategic (long-term) decisions
Tactical (intermediate-term) decisions
Operational planning and control (short-term) decisions

Strategic issues include what product (sevice) shall we make? How will we make the product? (technology decision) Where do we locate the facility or facilities? How much capacity do we build? Intermediate decisions can be thought of as annual plans, material purchase policies, staff levels adjustments and working capital support requirements for inventory financing. Operations decisions are daily machine dispatching decisions.

Operations Strategy and Competitiveness



Operations strategy involves decisions that related to the specifications and design of the product or service, design of a production process and the infrastructure needed to support the process, the role of inventory in the process, and locating the process. Operations strategy decision are part of corporate planning process that coordinates the goals of operations with those of marketing and that of larger organization.

Strategic operation decisions have to win the customer approval in absolute sense and they have to win in the competitive scenario, that means they have to win the customer approval in a relative sense (their offer must be superior to the target market customers relative to the offers of competitors).

Quality (which includes product benefits and features, reliability, durability) price and ease of purchase and servicing are the three operations related categories that customers use to evaluate before purchasing.


Project Management



Managing projects require planning, directing and controlling resources.

Projects begin with a statement of work, which can be a written description of the objectives. Breaking the work into smaller and smaller pieces that defines the system in detail is at the center of project management. Milestones or critical steps in the project might be completion of the design or production of a prototype. Maintaining control over projects requires the use of charts to show the scope of the entire project as well as the steps completed at a particular time. Other reports for detailed presentations of projects are used.  Work Breakdown Structure (WBS) shows projects in terms of tasks, subtasks, work packages and activities. A project is complete when all the tasks are completed.

CPM and PERT are  tools to assist the manager in meeting these objectives.


Product Design


Designing a product or service or buying the design or getting the design in case of contract manufacturer is what brings into existence a business entity in the first place and then onwards expansion occurs as new product units (Finished goods SKUs),  business lines and SBUs.

In the concept development, the product architecture is specified taking into consideration the new customer needs as identified by the marketing function. The product architecture converts the functional requirements of the product into product's components and subassemblies  that will provide the functions as a group. The product architecture is subjected to market evaluation and project evaluation. If  it passes this gate, approval is given for making a development sample of the product without detailed engineering. This product is subjected to technical testing and marketing testing and once again project evaluation is done. If it clears this second gate of customer acceptance of the development sample, detailed engineering is approved. Based on the detailed engineering, prototypes are made. Another round of technical and market evaluations are conducted. Clearing of this gate would result in approval for pilot plant. The pilot plan would produce the actual production output and a test marketing is now done for a final demand assessment. This final demand assessment is the basis for capacity decisions of the commercial plant.

the generic process of new product development as

Planning,
Concept development,
System level design,
Design detail,
Testing and refinement, and
Production ramp-up

Process Analysis



Analyzing a process allows some important questions to be answered, such as: What is the production rate?  How much does the process cost? What is the process capability? etc.  The purpose of the analysis needs to be clarified first to select an analysis technique.

Processes can be either single-stage or multiple-stage. For multiple-stage processes buffers or storage areas exist between manufacturing activities. Key manufacturing issues arising from multiple-stage operations include buffering, blocking, starving, and bottlenecks.


Process Metrics

Measuring process performance is an important activity. Companies can be compared to others in a benchmarking process.

The most common process metric is utilization. Utilization is the ratio of the time that a resource is actually being used relative to the time it is available for use.

Productivity is the ratio of output to input. It is also popularly used to assess a firm's performance. Efficiency is defined as the ratio of the actual output to a standard output.
Run time is the time required to produce a batch of parts. Setup time, and operation time along with throughput time and throughput rate are also important metrics.

Process velocity (also known as throughput ratio) is the ratio of the total throughput time to the value added time.

Ways to improve process metrics like reduce throughput time are part of this chapter.


Manufacturing Process Selection and Design


Process selection refers to the strategic decisions of selecting the kind of production process to have in a manufacturing plant.

production processes into four.

Conversion processes: They convert naturally available materials, called as minerals or ores into useful metals and materials in general shapes from which many different forms can be produced.

Fabrication Processes: Fabrication processes convert generally available processes materials into useful forms. Ex.:Making components required for an automobile using sheets as the raw materials and presses as the equipment.

Assembly Processes: Assemble various components into a useful product, machine or equipment.

Testing Processes: They are essential in production processes to assure that the processes output is up to the given specification. Testing may be done by the operator himself, another production operator in the subsequent stage or stages and specially designated inspector and many times also by the customer.

Process flow designs focus on the specific processes that raw materials, parts, and subassemblies follow as they move through the plant. Charts and drawings aid in process flow design.

Simulation in design

Simulation is now being used to help the design process. This is becoming increasingly important and widespread as computing power increases. Some of the visualizations used in design work can require very powerful computers. However, they can give an insight into how a potential process or product might work in practice which cannot be gained in any other way.

March 15, 2019

Operations Strategy and Competitiveness - Review Notes

For a company to be considered world class, it must recognize that the ability to compete in the marketplace depends on developing an operations strategy aligned with the mission of serving the customer. This article  describes a company's competitiveness is improved through operations strategy. The relative position of the firm to other firms in both local and global markets is assessed to develop strategy. The competitive dimensions of operations are cost, product quality and reliability, delivery speed, delivery reliability, coping with demand change, flexibility, and new product introduction speed. Central to the concept of operations strategy is the notion of operations focus and trade-offs.

The interface between marketing and operations is necessary to provide a business with an understanding of its markets from both perspectives. Operations strategy must be linked vertically to the customer and horizontally to other parts of the enterprise. The article  describes the steps for prioritizing competitive dimensions. 

Operations strategy is also relevant  in service firms. Example is Southwest Airlines where  operational activities support  overall strategy.  Wal-Mart  attacks the market by using operations.

Productivity is an important dimension of operations. Productivity measures include partial measures, multifactor measures, and total measures of productivity. These measures provide benchmarks to indicate how well the company is doing and are used to plan and measure improvement.


What is Operations Strategy?



Operations strategy involves decisions that related to the specifications and design of the product or service, design of a production process and the infrastructure needed to support the process, the role of inventory in the process, and locating the process. Operations strategy decision are part of corporate planning process that coordinates the goals of operations with those of marketing and that of larger organization.

Strategic operation decisions have to win the customer approval in absolute sense and they have to win in the competitive scenario, that means they have to win the customer approval in a relative sense (their offer must be superior to the target market customers relative to the offers of competitors).

Quality (which includes product benefits and features, reliability, durability) price and ease of purchase and servicing are the three operations related categories that customers use to evaluate before purchasing. Price is related to operations to the extent cost influences the price. Otherwise price is a marketing decision based on customer demand schedules and operations is not directly involved in pricing decision. But whenever operations is able to reduce costs, pricing decision is reconsidered. Hence cost is a strategic variable. Industrial engineering the discipline that specially focuses on rational cost management and industrial engineering strategy is also to be created by an organization along with operations strategy.

Competitive operations strategy development calls for research and improvement of operations processes on continuous basis and also monitoring of developments in competitor organizations. Benchmarking needs to be done periodically to understand the progress made by others and to initiate actions to catch up on parameters where there is a gap. Cost, product scope, product quality, delivery speed, delivery reliability, new product introductions are some of the operations related parameters in which competitors try to improve and gain competitive advantage.


Order qualifiers and Order winners



Terry Hill coined these terms. Order qualifiers are criteria that place a company's products in consideration for purchase. If order qualifiers are not present in a company's product they do not enter the purchase evaluation process of significant number of customers. Order winners are the features which results in getting orders. Order winners are given as reasons for purchase by the buyers from among the alternatives considered for purchase. Both these criteria keep changing and operations people have to redesign their processes to match them.



Operations Strategy - Important Issues


What is Operations Strategy? - Operations Strategy Defined



Operations strategy is concerned with setting broad policies and plans for using the resources of a firm to best support its long-tern business creation, survival and competitive strategy

Operations strategy involves decisions that related to the specifications and design of the product or service, design of a production process,  the infrastructure needed to support the process, locating the process or facilities and the circulating assets (role of inventory in the process). 



Operations Competitive Dimensions


Competitive Dimensions

Cost or Price: Productivity improvement and management of the high order is required.

Quality

Delivery reliability

Coping with changes in demand

Flexibility and New Product introduction speed

Product Support Services

    1, Technical liason and support
    2. Coordinating ability and striking to lauch dates in project business.
    3. Product maintenance for a long-period of time.
    4. Othe product related dimensions: colors available, sizes available, product mix available



Competitive Dimensions
The Notion of Trade-Offs
Plant-within-a-Plant (PWP) Defined
Straddling Defined
Order Winners and Qualifiers
Order Winner Defined
Order Qualifiers Defined
The Marketing-Operations Link

The Corporate Strategy Design Process
The Financial Perspective
The Customer Perspective
The Internal Perspective
The Learning and Growth Perspective

Strategic Fit—Fitting Operational Activities to Strategy
Activity-System Maps Defined
A Framework for Operations Strategy in Manufacturing
Core Capabilities Defined
Developing a Manufacturing Strategy
Operations Strategy in Services
Internet Compliments Strategy

Attacking Through Operations

Productivity Measurement
Key Performance indicators (KPI) Defined
Productivity Defined
How Does Wall Street Evaluate Operations Performance?

Conclusion



Source
http://highered.mcgraw-hill.com/sites/0072983906/student_view0/chapter2/

Presentation Slides - Operations Strategy

Strategic Role of Operations - Slack's Book chapter summary
Operations Strategy - Slack's book chapter summary - chapter 3


Summaries of all Chapters of Operation Management


Updated   16 March 2019,  4,12.2014, 10.2.2012

MBA Core Management Knowledge - One Year Revision Schedule