Issues include:
•Organizational structure
Performance
objectives
Quality
and operations
effectiveness
• The role and
contribution of the
operations function
• Connecting operations
with the external
environment
•The role of central
operations
Speed
Dependability
Flexibility
Cost
Capacity
Supply
Network
Market Competitiveness
Resource Usage
Development
Process
and
Organization
Technology (organisation
and role)
Decision areas
Issues covered in this chapter
© Nigel Slack and Michael Lewis 2003
Slide 10.1
Development and
deployment of
intangible
resources
Development
and deployment
of tangible
resources
Efficient
operation
Flexible
response
OPERATIONS Organisational
MARKET
structure
RESOURCES
REQUIREMENTS
Servicing a
range of market
positions
Development and
deployment of
boundary
resources
The objectives of organisational design
© Nigel Slack and Michael Lewis 2003
Slide 10.2
Group
Headquarters
Marketing
Operations
Finance
Dept.A
Dept.C
Dept.B
Dept.A
Dept.C
Dept.B
Dept.A
Dept.C
Dept.B
U-form organizations give prominence to functional groupings
of resources
© Nigel Slack and Michael Lewis 2003
Slide 10.3
Group
Headquarters
Division A
Marketing
etc.
Operations
Division B
Marketing
etc.
Operations
Division C
Marketing
etc.
Operations
The M form separates the organization’s resources into
separate divisions
© Nigel Slack and Michael Lewis 2003
Slide 10.4
Group
Headquarters
Division
A
Division
B
Division
C
Marketing
Operations
Human resources
Finance
Matrix form structures the organization's resources so
that they have two (or more) levels of responsibility
© Nigel Slack and Michael Lewis 2003
Slide 10.5
Organisation
A
Headquarters
Org D
Org B
Group A
Group F
Org E
Org C
Group E
Group B
Group D
Group C
N form organizations form loose networks internally between
groups of resources and externally with other organizations
© Nigel Slack and Michael Lewis 2003
Slide 10.6
Staff
Funds
Personnel
Bought-in
products
and
services
from
suppliers
Purchasing
Technical/
engineering
Process
technology
Accounting
and finance
THE
OPERATIONS
FUNCTION
Marketing
Products
and
services to
customers
Product/service
development
Product/service
ideas
Traditionally other ‘boundary’ functions
protected the ‘core’ operations function from
environmental uncertainty
© Nigel Slack and Michael Lewis 2003
Slide 10.7
PRODUCT/
SERVICE
DEVELOPMENT
PRODUCT/
SERVICE
DEVELOPMENT
MARKETING
MARKETING
OPERATIONS
OPERATIONS
Example - Defense electronics manufacturer
Example - Retail bank
The degree of overlap between functional strategies will
depend on the nature of the business
© Nigel Slack and Michael Lewis 2003
Slide 10.8
The Strategic Role of the Operations Functions
The 3 key attributes
of operations
Operations Contribution
Implementing
be Reliable
Operationalise strategy
explain Practicalities
Supporting
be Appropriate
Understand strategy
Contribute to decisions
Driving
be Innovative
provide Foundation of strategy
Develop long-term Capabilities
© Nigel Slack and Michael Lewis 2003
Head
office
Operation
A
Operation
A
Head
office
Operation
A
‘Stand-alone’ influence
Operation
A
Operation
A
Operation
A
‘Linkage’ influence
Head
office
Specialist
function A
Operation
A
Specialist
function B
Operation
A
Operation
A
Central functions and services influence
Head
office
Operation
A
Operation
A
Operation
A
Corporate development
Four ways in which corporate head office can add value
Source: Adapted from Goold, M., Campbell, A. and Alexander, M. (1994) Corporate Level
Strategy, Wiley, N.Y.
© Nigel Slack and Michael Lewis 2003
Slide 10.9
Programmatic
Instructing operations in the development
and deployment of their capabilities through
standardised improvement methods
Top
down
Governor
Controlling the performance of the
operations by setting clear priorities and
measuring performance against targets
Capabilities
Roles:
Central operations - Teacher/consultant
Business operations - Pupil/Client
Operations
resources
Roles:
Central operations - Messenger/Judge
Business operations - Recipient/Defendant
Curator
Facilitator
Enabling operations in the development and
deployment of their capabilities through
shared advice, support and learning.
Roles:
Central operations - Mentor
Business operations - Member of a
community
Market
requirements
Nurturing the performance of the operations
by collecting performance data and
distributing comparative performance
information
Performance
Trainer
Roles:
Central operations - Recorder/Analyst
Business operations -Source of information
Bottom
up
Emergent
A typology of the ‘Central Operations’ function
© Nigel Slack and Michael Lewis 2003
Slide 10.10
Programmatic
Top
down
GOVERNOR
Market
requirements
Operations
resources
FACILIATOR
CURATOR
Performance Focus
Capabilities Focus
TRAINER
Bottom
up
Emergent
Power
Dominant
Subservient
Communication
Predominantly one-way
Predominantly two-way
Relationship
Strong
Weak
Information relationships for the four types of central operations functions
© Nigel Slack and Michael Lewis 2003
Slide 10.11
Top
management
Events
Graphics
..Etc.
Project A
Project B
Project C
The Thought Space Partnership Organizational Structure
© Nigel Slack and Michael Lewis 2003
Slide 10.12
Product/service
development
Product/service
development
(CREATIVITY)
Product/service
development
Marketing
Operations
Marketing Operations (COMMERCIALISM) (COMPETENCE)
Marketing Operations
Some
manufacturing
Mass
services
Professional
services
Thought Space - Increasing overlap between
operations and the other core functions
© Nigel Slack and Michael Lewis 2003
Slide 10.13
Top
Management
Client D
Client B
Graphics
Client E
Events
3D
Design
Technical
Solutions
Client C
Marketing
Accounts
Thought Space - N form organisations form loose networks
internally between groups of resources and externally with
other organizations
© Nigel Slack and Michael Lewis 2003
Slide 10.14