Operations Strategy Examples: Capacity, Process & Inventory

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Operations Strategy Examples: Capacity, Process & Inventory

1. Luxe Electronics — Design Flexibility

Luxe Electronics: Competitive advantage strategy: design flexibility.

2. Fast Forward Fashion — Reliability & Delivery

Fast Forward Fashion: Change in reliability; delivery status: from order winner to order qualifier.

3. H2O — Purification and Mineral-Enrichment

H2O: Role of purification and mineral-enrichment stages: transformation processes.

4. Techie — Smartphone with Bundled Services

Techie: Smartphone with bundled services: good-service bundling.

5. Electric Car — Sequential vs Parallel Design

Electric Car: Choosing sequential vs. parallel design: product and process development and engineering.

6. E-Bike — Prototype Testing Phase

E-bike: Prototype testing phase: testing and evaluation.

7. Submarine A/C — Project Process Type

Submarine-specific air conditioners: Process type: project process type.

8. Assembly Blocking — Storage Space Constraint

Assembly faster than testing — Blocking scenario: The assembly station must stop because there is no storage space to place the completed units.

9. Dell — Make-to-Order and Make-to-Stock Mix

Dell: Custom computers, sub-assemblies before orders: the manufacturing process of Dell is a mix of make-to-order and make-to-stock.

10. Airline — Capacity Cushion Management

Airline: Managing capacity cushion: maintain 10–20% additional capacity above expected demand to accommodate variability.

11. Pharma — Neutral Capacity Strategy

Pharma: Long-term strategy with uncertain demand: use a neutral capacity strategy that includes leasing equipment and outsourcing production to allow for incremental expansion.

12. Band-Aid Company — Expansionist Strategy

Band-Aid Company: Expansionist strategy: it increases capacity more than the anticipated future demand to avoid capacity shortages.

13. Center of Gravity Method — Data Inputs

Center of Gravity Method: Data inputs: the locations of customers, the quantity of goods shipped to each customer, and the distance from the plant to the customers.

14. Factory Location — Cost-Volume Analysis

Factory location cost comparison: locational cost-volume analysis.

15. Nutella — Not a Capacity Option

Nutella: NOT a capacity option: backordering during high-demand periods.

16. Aggregate Planning — Cost-Focused Strategy

Aggregate planning strategy with cost focus: the question cannot be answered with the information given.

17. StyleCo — Lead Time Variability

StyleCo: Inventory issue from transportation strike: lead-time variability.

18. Quantity Discount Model — Not a Step

Quantity Discount Model: not a step: select the highest order quantity that qualifies for a discount.

19. MRP — Not a Common Advantage

MRP: not a common advantage: greater responsiveness to market changes, adjusting production according to demand.

20. BOM — Correct Component Levels

BOM (Bill of Materials): correct statement: the screws with the component code S21 are at levels 2 and 3.

21. FreshFoods — Supplier Relationship Program

FreshFoods: supply issues with local farms: implement a supplier relationship program to improve coordination.

22. Retail Inc. — Vendor-Managed Inventory

Retail Inc.: suppliers restocking based on system data: vendor-managed inventory.

23. Automax — Pull Production System

Automax: producing only on customer demand: pull system.

24. Lean Tools — Objective of Smaller Batches

Lean tools (5S, SMED): objective: smaller batches.

25. Printing Company — Jidoka for Quality

Printing company: operator stops production for quality: Jidoka.

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