Operations Strategy DAVID WALTERS

Transcription

1 Operations Strategy

2 Operations Strategy DAVID WALTERS

3 David Walters 2002 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London W1T 4LP. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The author has asserted his right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act First published 2002 by PALGRAVE MACMILLAN Houndmills, Basingstoke, Hampshire RG21 6XS and 175 Fifth Avenue, New York, N.Y Companies and representatives throughout the world PALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan division of St. Martin s Press, LLC and of Palgrave Macmillan Ltd. Macmillan is a registered trademark in the United States, United Kingdom and other countries. Palgrave is a registered trademark in the European Union and other countries. ISBN ISBN (ebook) DOI / This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. A catalogue record for this book is available from the British Library. A catalogue record is available from the Library of Congress

4 Contents Acknowledgements ix PART 1 DEVELOPING A VIEW OF STRATEGIC OPERATIONS MANAGEMENT Introduction: new economy new business models 2 Why a different approach? 2 The value chain: integrated demand and supply chains 5 Operations strategy: profile and definitions 7 References 11 1 Emerging characteristics of value and value creation and delivery 13 A time of change 13 Value creation and value delivery 19 Summary 22 References 24 2 Perspectives of value 25 Introduction 25 A customer value model 27 Approaches to defining value 28 Summary 34 References 35 3 Value as a business concept 36 Introduction: revisiting basic concepts 36 Value strategy decisions: strategic effectiveness and operational efficiency 46 A conceptual approach to a value strategy model 49 Summary 58 References 58 v

5 vi CONTENTS 4 Value based organisations: the growth of flexible response and virtual organisations 59 Introduction 59 Where we came from 63 Some constructs 64 More recent events 69 Where we may be heading 70 Some directives for the future: the virtual organisation 78 Summary 83 References 84 5 Supply chains and value chains: definitions, characteristics, differences and directions 86 Introduction 86 The value chain perspective 92 Current perspectives 99 Implications: a value strategy 102 Summary 103 References Value based organisations: the value chain approach 105 Introduction 105 Organisational issues 117 Summary 120 References Strategic and operational characteristics and components 122 Introduction 122 A generic approach 124 A generic value chain 129 Key issues and questions for value chain decisions 135 Adding value in the value chain 138 The value chain: organisational profile characteristics: an emphasis on value for the customer and the shareholder 139 Value chain: decisions and processes 144 Summary 150 References Corporate value, performance management, coordination and control: issues and options 154 Introduction 154 The stakeholder approach 155 Using added value as a performance measure 160 The balanced scorecard 162 Developing a strategic operations management performance planning, coordination and control model 165

6 CONTENTS vii Summary 174 References Managing customer value and the value proposition 176 Introduction 176 A customer value model 178 Components of customer value 182 The value delivery gap 188 Positioning: the value proposition 193 Creating a value proposition: a case study 195 Summary 198 References Core competencies, key success factors, value/cost drivers and process management 200 Introduction 200 Core competencies/capabilities 201 Competencies and capabilities 202 Key success factors 209 Value drivers 212 Core competencies/capabilities, key success factors and value drivers 215 Business processes: a conduit for value chain operations 217 Core competencies/capabilities and key success factors: Li and Fung continued 222 Summary 224 References Where value strategy and value operations meet 226 Introduction 226 A framework for integrating value strategy and value production 227 The value chain: organisation profile 233 The value chain: processes, activities and decisions 234 Implementing value production: Li and Fung continued 238 Summary 243 References 244 PART 2 EXISTING VALUE CHAINS Introduction Industry value chains 250 The Prato (Italy) value chain 250 The automotive industry 254 Summary 263 References 264

7 viii CONTENTS 13 Corporate value chains 265 The McKesson HBOC Corporation 265 IKEA 273 Summary 279 References Value and value chains in healthcare 281 Introduction: value chains and a healthcare application 281 A value chain study at Queen Elizabeth Hospital 283 Value chain processes 293 Summary 297 References Value chains in education 298 Introduction 298 A new business model for education? 300 What are the implications of value chains for universities? 303 Summary 306 References 310 PART 3 CONFIGURING THE VALUE CHAIN STRUCTURE AND PERFORMANCE Introduction Configuring the value chain: Introduction: concepts and issues for the future 314 Revisiting value positioning and competitive advantage strategy 318 Exploring the interfaces 322 Intra- and inter-organisational processes 324 Performance planning and measurement in the value chain 326 Value chain planning and control 336 Summary 339 References Configuring the value chain: Introduction 343 Creating a value chain design 346 Summary 360 References Case study exercises 362 Introduction 362 A value chain audit model : questions requiring answers 362 Case study 1: Caterpillar Inc 367 Case study 2: value chains in broadcasting 372 Case study 3: Wal-Mart a model fmcg retail value chain? 374 Case study 4: Dell Computer Corporation 377 Index 383

8 Acknowledgements As any author knows no book can be written without a great deal of help from colleagues. This has been no exception. Thanks are owed to Margaret Wiseman and Monica Byrnes who together word-processed and proof-read the chapters. My thanks are also due to Dr Peter Jones and the Clinical and Nursing staff of the Queen Elizabeth Hospital in Rotorua for the time and effort given to me in researching and writing Chapter 14. My colleague Professor Tony Adams was responsible for the material on current and future developments in international education in Chapter 15. Special thanks to Lynda, my wife, for listening and in particular for improving my computer skills, especially for introducing me to the draw toolbar; an instrument of torture that eventually became a friend!! ix