Slack’s (2013) Model of Operations
To know if customers are satisfied, we must know the
performance level.
We need the strategy to design the job, product, and
processes simultaneously.
Plan (set expectations) control (what is happening vs
what I wanted to happen)
If the customers are not satisfied, we must improve the
strategy. And operations performance.
WILD CARD (Standardization vs Consumerization)
Standardization can result in reductions in cost.
Corporate strategy decisions (WHY?):
1. To grow, increase revenues & market share (not all
decide to grow) by:
Concertation – selling more to current customers or
attracting new clients from competitors, attracting
customers who were not part of the market.
Vertical integration – integrate suppliers in company
(become your own supply – vertical integration
backward), become your own distributor – vertical
integration forward.
Horizontal integration – acquire, buy merge with
competitors.
Diversification – related products and unrelated
products
To know if customers are satisfied, we must know the
performance level.
We need the strategy to design the job, product, and
processes simultaneously.
Plan (set expectations) control (what is happening vs
what I wanted to happen)
If the customers are not satisfied, we must improve the
strategy. And operations performance.
WILD CARD (Standardization vs Consumerization)
Standardization can result in reductions in cost.
Corporate strategy decisions (WHY?):
1. To grow, increase revenues & market share (not all
decide to grow) by:
Concertation – selling more to current customers or
attracting new clients from competitors, attracting
customers who were not part of the market.
Vertical integration – integrate suppliers in company
(become your own supply – vertical integration
backward), become your own distributor – vertical
integration forward.
Horizontal integration – acquire, buy merge with
competitors.
Diversification – related products and unrelated
products
