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Instructor Guide
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Session 1—Developing the Business Strategy
Strategic Planning: The External Environment...............................................................
1-9
Significance of the Business Strategy .......................................................................................
1-9
External Environment: Seven Key Issues ..................................................................................
1-11
The Industries Dominant Economic Features ...........................................................................
1-11
Competitive Forces Analysis.......................................................................................................
1-15
Forces Driving Change ................................................................................................................
1-23
Market Positioning ......................................................................................................................
1-25
Market Competitors ....................................................................................................................
1-27
Determine the Enterprise’s Key Success Factors.....................................................................
1-29
Assess Industry Attractiveness and Profitability .......................................................................
1-33
Strategic Planning: The Internal Environment ...............................................................
1-37
Assess the Current Strategy .......................................................................................................
1-37
Assess Strengths, Weaknesses, Opportunities, and Threats ..................................................
1-41
Determine Price Competitiveness .............................................................................................
1-47
Assess Strength Relative to Competitors ..................................................................................
1-49
Manage Strategic Issues ............................................................................................................
1-51
Development of a Competitive Strategy .........................................................................
1-57
Types of Competitive Strategies ................................................................................................
1-57
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Strategic Management of Resources
Session 2—The Global Environment and Sustainability
The Global Environment .................................................................................................... 2-7
The Market Lifecycle and Strategy Evolution............................................................................ 2-9
Formative Strategy Issues ......................................................................................................... 2-13
Approaches for Competing Internationally ............................................................................... 2-15
Strategic Options for Market Entry ............................................................................................ 2-17
Techniques for Gaining Competitive Advantage ...................................................................... 2-21
Sustainability ..................................................................................................................... 2-27
Principles of Sustainability ......................................................................................................... 2-27
Corporate Social Responsibility ................................................................................................. 2-27
Sustainable Management System Model ................................................................................. 2-41
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Session 3—Operations Strategy
Developing the Operations Strategy ............................................................................... 3-7
Operations Strategy and Objectives .......................................................................................... 3-7
Product and Service Process Design ........................................................................................ 3-13
Design Process Objectives ........................................................................................................ . 3-17
Structure Choices ............................................................................................................. 3-27
Design Logic Model ....................................................................................................................
Volume-Variety Requirements ...................................................................................................
Process Types .............................................................................................................................
Process Layouts..........................................................................................................................
Process Technology ....................................................................................................................
Job Design...................................................................................................................................
3-27
3-29
3-31
3-35
3-41
3-45
Infrastructure Choices ...................................................................................................... 3-51
Organizational Design ................................................................................................................ 3-51
Performance Measurement Systems .............................................................................. 3-55
Integrated Performance Measurement .................................................................................... 3-55
The Balance Scorecard Concept ............................................................................................... 3-61
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Session 4—Operations Strategy Choices and Financial Measurement
Business and Operations Strategy .................................................................................. 4-7
Business Strategy ....................................................................................................................... 4-7
Role of Performance Objectives in Operations Strategy Choices ............................................ 4-15
Other Operations Strategy Issues and Choices ............................................................. 4-19
Process Layout Choices and Competitive Strategy .................................................................. 4-21
Materials Planning and Scheduling ........................................................................................... 4-23
Capacity and Organizational Structure Issues .......................................................................... 4-25
Performance Measurements ..................................................................................................... 4-27
Case Study................................................................................................................................... 4-29
Financial Measurement ................................................................................................... 4-33
Cash Flow Statements ................................................................................................................ 4-33
Financial Statement Analysis ..................................................................................................... 4-39
Capital Investment ...................................................................................................................... 4-47
Absorption and Variable Costing ................................................................................................ 4-53
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Session 5—Aligning Operations with Supply Chain Partners
Supply Chain Management ............................................................................................. 5-7
Supply Networks ........................................................................................................................ 5-7
Supply Chains ............................................................................................................................ 5-9
Supply Chain Management....................................................................................................... 5-11
Capacity Planning ............................................................................................................ 5-15
Large Versus Small Scale Operations and Facilities ............................................................... 5-15
Managing Supply Chain Relationships .......................................................................... 5-23
Purpose of Supply Chain Relationships……...........................................................................
Arm’s-Length Transaction .........................................................................................................
Long-Term Partnerships ............................................................................................................
Disintermediation ......................................................................................................................
Outsourcing ................................................................................................................................
Vertical Integration ....................................................................................................................
Supplier Reduction ....................................................................................................................
The Bullwhip Effect ....................................................................................................................
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5-23
5-25
5-27
5-31
5-33
5-35
5-37
5-39
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Strategic Management of Resources
Session 6—Infrastructure Systems
Management .................................................................................................................... 6-7
Measurement Processes .......................................................................................................... 6-7
Human Resource Policies and Practices................................................................................. 6-13
Quality—A Competitive Marketplace Requirement ...................................................... 6-17
Total Approach to Quality ......................................................................................................... 6-17
Creating Value for the Customer.............................................................................................. 6-17
Quality Measures ...................................................................................................................... 6-23
Statistical Process Control ....................................................................................................... 6-29
Quality Management Systems and Awards ............................................................................. 6-31
Information Infrastructure .............................................................................................. 6-33
ERP Systems ............................................................................................................................. 6-33
Visual Management and Reporting ......................................................................................... 6-37
Deployment of Facilities and Equipment....................................................................... 6-43
Facilities..................................................................................................................................... 6-43
Positioning of Equipment ......................................................................................................... 6-57
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Session 7—Change Management
Implementing Strategy Through Change ....................................................................... 7-7
Reasons For Implementing Change ......................................................................................... 7-7
Strategies For Change ............................................................................................................... 7-9
The Change Process .................................................................................................................. 7-11
Role of Leadership and Management ............................................................................ 7-17
How to Lead Change ................................................................................................................. 7-17
Preparing for Change ................................................................................................................ 7-19
Risk Assessment and Mitigation.................................................................................... 7-23
Assess Potential Failures .......................................................................................................... 7-27
Preventing Failures.................................................................................................................... 7-37
Recovering From Failures ......................................................................................................... 7-39
Project Management For Change .................................................................................. 7-45
What Is A Project? ..................................................................................................................... 7-45
Project Phases ........................................................................................................................... 7-47
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Session 8—Case Studies
Case Studies ..................................................................................................................... 8-7
Appendix
Progress Check Answer Sheet ....................................................................................... A-1
Bibliography .....................................................................................................................
Overview of APICS SMR Sourcebook .............................................................................
A-2
A-3
Index
Index.................................................................................................................................. Index 1
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