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Strategic Operations Management,

Logistics And Supply Chain Optimisation
Introduction to Operations Strategy
Session 1

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 Today’s Agenda and Objectives

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• Objective: Masterthetitle style
subject of operations Strategy
– Introductions
– How this module will be taught
– What is Operations
– What is operations management
– What is operation strategy and how it is different from operations
management.
– How to research operations management
– Assignment

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 What is Operations

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Operations is defined as

“ the part of an organisation that creates and/or delivers its

products and services” (Nigel and Lewis, 2020 p.2).

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 Operations
1- Resources:
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What type of materials, information , people (as customer or
staff), technology, buildings are appropriate to best fulfil the
organisation's objectives
Do we have the right resources and are we using them
correctly .
2- Processes:
How recourses are organised to best create the required mix
of products and services.

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 Operations management

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Operations management is the activity of managing the
resources which are devoted to the production and delivery of
products and services.

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 What is operations management
• Operations management is chiefly concerned with planning,
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organising and supervising in the contexts of production,
manufacturing or the provision of services.

• As such, it is delivery-focused, ensuring that an organization

successfully turns inputs to outputs in an efficient manner.

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 Examples of Operations
Back-office operation Kitchen unit
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in a bank manufacturing
operation

They are
all
Retail operation
operations
Take-out / restaurant
operation

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 Operations Management
• The best way to start understanding the nature of
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‘operations’ is to look around you
• Everything you can see around you has been processed by
an operation
• Every service you consumed today (radio station, bus
service, lecture, etc.) has also been produced by an
operation
• Operations Managers create everything you buy, sit on,
wear, eat, and throw away
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 Input-transformation-output model of operations

All operations are transformation processes …

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Inputs Transformation process Outputs

that transform inputs …

into outputs
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 Input-transformation-output model of operations

Some inputs are transformed resources

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Some inputs are transforming resources
Transformed
resources …
Transformation process
Materials
Information Products
Customers

Inputs Output Customers

Transforming
resources … Services
Facilities
Staff
Outputs are products and services that add
value for customers © University of South Wales
 Example (Pizza)

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to edit
resources …
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Transformation process
Processing Pizza
Order information
Customers Output
Pizza Warm Fresh Pizza Happy
ingredients(flour, Customer
tomato sauce,
Input
cheese, yeast, etc..)

Output
Transforming resources …
Oven
Equipment
Staff

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 The output from most operations is a mixture of
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products and services
Pure products – Outputs
that are exclusively
Crude oil production
tangible

Aluminium smelting
Acme Whistles
Specialist machine tool
production Mixture of products
and services – Outputs
Pizza Hut that are a mixture of
Restaurant
the tangible and the
intangible
Kitchen Unit IKEA

Treatment
Clinic
Pure services – Outputs
Psychotherapy clinic that are exclusively
intangible © University of South Wales
 The Four Vs of Operations

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Low Volume High
High

High Variety Low

Variation in
High Low
demand

High Visibility Low

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 The Four Vs of Operations (Volume)

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Low Volume High
High

• Repetitive tasks
• Systemisation of the work
• Specialised machinery
Very High • Low degree of customization
• Low unit cost

• Less-repetitive tasks
• Non-Systemisated work
• Flexible machinery
Low • High degree of customization
• High unit cost

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 The Four Vs of Operations (Variety)

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High Variety Low

• Flexible
• Complex
High • Match customer needs
• High unit costs

• Well defined
• Routine
Low • Standardized
• Regular
• Low unit costs

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 The Four Vs of Operations (Variation in demand)
Variation in
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High
to
demand
Holiday Resort
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Low
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• Demand concentrated in summer holidays
• Peak Capacity and extra resources
needed in high seasons
High • Flexibility
• High unit costs

• Stable
• Routine
Low • Predictable
• High utilization
• Low unit costs

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 The Four Vs of Operations (Visibility)
High Visibility Low
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• Short waiting tolerance
• Satisfaction governed by
customer perception
High • Customer contact skills needed
• Received variety is high
• High unit costs

• Time lag between production

and consumption
• Standardization
Low visibility Low • Low contact skills
operations • High staff utilization
• Centralization
• Low unit costs

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 An example for the changing emphasis of retail banking
services from branch based to online
Shift from …
Implications Implications
Branch banking To Online banking
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Low repetition
Each staff member
performs more of job Low Volume High
High
High repeatability
Specialization
Capital intensive
Less systemization
Low unit costs
High unit costs

Well defined
Flexible
Routine
Complex
Match customer needs
High Variety Low Standardized
Regular
High unit costs
Low unit costs

Changing capacity Stable

Anticipation Routine
Variation in Predictable
Flexibility High Low
In touch with demand demand High utilization
High unit costs Low unit costs

Short waiting tolerance Time lag between

production and
Satisfaction governed by consumption
customer perception Standardization
Customer contact skills High Visibility Low Low contact skills
needed
Received variety is high High staff utilization
High unit costs Centralization
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 A general model of operations management

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The operation’s
strategic
objectives

Transformed Operations Operations The operation’s

resources … strategy strategy competitive role
and position
Materials
Information
Customers
Design Improvement
Operations Output
Input management products Customers
resources and
services
Transforming Planning
resources … and control

Facilities
Staff
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 What is operation strategy and how it is different from
operations management.
• Setting broad objectives that direct an enterprise towards its overall
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goal.

• Planning the path that will achieve these goals

• Stressing long-term rather than short-term objectives;

• Dealing with the total picture rather than stressing individual activities

• Being detached from, and above, the confusion and distractions of day-
to-day activities.

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 How operations strategy different from operations
management

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‘it’s a strategic perspective on how operations resources and process are managed.’
(Nigel and Lewis, 2020 p.11).

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 How operations strategy different from operations
management? With Examples
Differences Operations management Operations strategy

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Longer timescales
Largely concerned with short-to-medium timescales.

E.g: What demand fluctuations do we have to

Concerned with more longer-term issues.

E.g: When should we plan to add further capacity

deal with over the next few months? so that we can meet rising forecast demand?
Largely concerned with managing resources within
More concerned with decisions affecting a wider set
and between smaller operations(department, work
of the organisation's resources and the supply
unit).
network of which they are a part.
Higher level of analysis
E.g: Where should we position each product E.g: How many stores should we have, where
category within our department store? should we locate them and how should we supply
them?
Concerned with the details of how products and Bring together and consolidates such details into
Higher level of services are produced. border issues.
aggregation E.g: How do we provide tax advice to the small E.g: What is our overall business advice capability
business sector in Cardiff? compared with our other European activities?
Largely concerned with what is immediately Often deals with more abstract, less directly
recognisable and tangible. observable, issues.
Higher level of abstraction
E.g: How do we improve our purchasing E.g: Should we develop strategic alliances with
procedures? selected medical products suppliers? © University of South Wales
 Operations Strategy

Operations strategy …..

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‘… the decisions that shape the long-term
capabilities of the company’s operations and their
contribution to overall strategy through the on-
going reconciliation of market requirements and
operations resources …’

(Nigel and Lewis, 2020 p.28).

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 The four perspectives on operations strategy–top-down,
bottom-up, market requirements and operations resources

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title style
Operations
strategy should
interpret
higher- level
strategy
Operations resources Market requirementts
Operations strategy Operations strategy should
should build Operations satisfy the organisation’s
operations capabilities strategy markets

Operations
strategy should
learn from day-
to-day
experiences
Bottom-up © University of South Wales
 Correspondence and coherence are the two requirements of
the top-down perspective of operations strategy

Business Strategy
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Correspondence between business
strategy and operations strategy

HR Marketing Operations Finance IT …etc.

Coherence across functional strategies

Correspondence between business

strategy and operations decisions

Product / service Operations structure Process design Supply chain Capacity …etc.
innovation and scope management management

Coherence within operations strategy © University of South Wales

 The outside-in element of operations strategy translates the requirements of
the market into a set of operations performance objectives

Click to edit Master title style Outside-in perspective

The operations
performance objectives Understanding the
required to support market through , for
market positioning Select intended example.
Operations Strategy • Quality market positioning • Market
• Speed segmentation
• Dependability • Competitor
• Flexibility analysis
• Cost

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 The outside-in element of operations strategy translates the requirements of
the market into a set of operations performance objectives

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Operations style
Strategy

Convert knowledge
into capabilities

Knowledge building

Learning

Day-to-day
operational
experience
Bottom-up
Perspective © University of South Wales
 The inside-out element of operations strategy develop the capabilities of the
operation’s resources and processes

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Inside-out perspective

The key decisions that support

and develop operations
capabilities
An • Performance measurement
understanding of • Capacity strategy
Operations • Support network strategy Operations Strategy
the operation’s
resources and capabilities • Process technology strategy
processes • Product /service
development strategy
• Improvement strategy

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 Top-down, bottom-up, outside-in, bottom-up and inside-out
perspective of the Heftexx operations strategy
Top-down
Visual Spectacular Group building capability
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Inside-in in high-tec entertainment services Outside-in

Many new Heftexx lighting solutions business grows Shift market

clients run through high-tech LED lighting and digital emphasis to
events in control systems innovation. Increase ‘event’ and
southern Open Operations invest in hi-tech lighting and software high-margin
Europe Barcelona control systems that provide innovative development, clients
site, work designs but educate clients to recognise data
closely with potential, set up a new site to ensure close exchange and
suppliers, and dependable service and develop close client liaison Specialise in
organise relationships with suppliers skills and aim innovative
Longer ‘state of play’ Offer simplified ‘pre-designed’ lighting packages for absolute technically
journey times conferences and run training workshops for clients. dependability sophisticated
to service lighting
‘event’ clients solutions
pushing up Customers seem to be confused by the
costs capabilities of the new lighting and control
technologies
Bottom-up © University of South Wales
 Assignment
Deadline – (Word document only)
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Write a 2,000 Word Literature Review +/- 10%
“Sustainability and Green Operations Management in the
Manufacturing Sector”.
This topic focuses on the integration of sustainability strategies within manufacturing operations,
looking at green supply chains, circular economies, sustainable production techniques, and the shift
towards environmental responsibility

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 Assignment
Understand the Assignment Requirements
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Topic Clarification:
The focus of this literature review is on how businesses in the manufacturing sector are
implementing sustainability strategies. This includes examining green supply chains, the
circular economy, sustainable production techniques, and the growing emphasis on
environmental responsibility in operations management.
 "Critically Discuss":
This means evaluating, analysing, and synthesising the literature. You should not merely
summarise existing studies, but critically assess the findings, compare perspectives, and offer a
balanced discussion of the topic.
 Contemporary Issue:
Sustainability and environmental responsibility are increasingly important for businesses today.
This topic is relevant because it aligns with ongoing global efforts to reduce environmental impact
and improve sustainability practices across industries.

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 Assignment
Identify Key Aspects of Sustainability in Manufacturing
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There are several key areas within this topic that you should address in your literature review:
 Green Supply Chains:
Explore how companies are redesigning their supply chains to reduce environmental impact. This
could include sustainable sourcing, reducing carbon footprints, and promoting the use of eco-
friendly materials.
 Circular Economy:
Investigate how the circular economy is being implemented in manufacturing. This involves
practices such as recycling, remanufacturing, and designing products for reuse, as well as reducing
waste through efficient resource management.
 Sustainable Production Techniques:
Examine the use of sustainable production methods, such as energy-efficient technologies, eco-
friendly manufacturing processes, and the reduction of water and waste during production.
 Environmental Responsibility and Corporate Social Responsibility (CSR):
Discuss the broader trend of businesses adopting environmental responsibility as part of their CSR
initiatives. How are manufacturers integrating sustainability into their overall strategic goals?
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 Assignment
Conduct a Comprehensive Literature Search

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Use Academic Databases:
Gather peer-reviewed articles, books, and reports on sustainability in the manufacturing sector.
 Search Criteria:
Use keywords such as "sustainability in manufacturing," "green operations management," "circular
economy in manufacturing," "sustainable supply chains," and "eco-friendly production."
 Current Literature:
Focus on literature from the last 5-10 years to ensure that your review is up-to-date with recent
developments in green operations management.

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 Assignment
Organise the Literature
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There are several ways you can organise your literature. Below are a few options:

 Thematic Approach:
Group your literature by key themes, such as:
o Green supply chains
o Circular economy models
o Sustainable production methods
o Environmental responsibility in manufacturing
 Methodological Approach:
Organise by research methods (e.g., qualitative vs. quantitative studies, case studies vs.
theoretical work).
 Chronological Approach:
Consider organising your review by the development of sustainability practices over
time, showing how sustainability trends have evolved in manufacturing.
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 Assignment
Critical Analysis
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Viewpoints: Master title style
Present different perspectives on sustainability in manufacturing. For example, some scholars may
argue that green supply chains lead to significant cost savings and improved brand reputation,
while others might highlight the initial investment costs and implementation challenges.
 Strengths and Weaknesses:
Assess the strengths and weaknesses of the studies. Consider their methodological limitations
(e.g., small sample sizes, limited industry focus) and whether they sufficiently address the
complexities of sustainability in manufacturing.
 Synthesis of Findings:
Rather than summarising individual studies, synthesise the findings. What trends are emerging
from the literature? Are there conflicting findings or areas where consensus is lacking? How do the
studies collectively contribute to the understanding of green operations management in
manufacturing?

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 Assignment
Theoretical Frameworks and Conceptual Models
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 If applicable, discuss relevant theoretical frameworks or models used in sustainability and
green operations management. Some examples include:
o Porter’s Value Chain: How sustainability can be integrated at each stage of the
value chain.
o The Triple Bottom Line (TBL): Focusing on the three Ps: People, Planet, and Profit,
and how manufacturers are balancing these aspects in their operations.
o Cradle to Cradle Design: A framework for designing products and processes that
minimise waste and make use of renewable resources.
 Relate Theory to Practice:
How do these frameworks apply in the context of real-world manufacturing operations?
Are they being effectively used, or do they need further adaptation?

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 Assignment
Link to Strategic Operations Management
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 Discuss how sustainability initiatives affect strategic operations management in
manufacturing. Consider the following:
o Operational Decision-Making: How do sustainability goals influence operational
decisions? For instance, how does a commitment to reducing carbon emissions shape
production processes or supply chain decisions?
o Competitive Advantage: Can companies gain a competitive edge by being more
sustainable in their operations? What role does innovation play in this process?
o Efficiency and Cost Savings: How do sustainable practices contribute to operational
efficiency, and do they lead to cost savings in the long term?

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 Assignment
Conclusion and Gaps in Literature
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 Summary:
Provide a concise summary of the key findings from your literature review,
highlighting the main themes, trends, and debates.
 Implications for Practice:
Discuss the practical implications for manufacturers. How can they implement or
improve sustainability strategies in their operations? What are the challenges they
face in doing so?
 Identify Gaps:
Identify areas where further research is needed. Are there any under-researched
aspects of green operations management, such as the role of government policy, or
the integration of new technologies in sustainable production?

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 Assignment
Suggested Structure for the Literature Review (2000 words)
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1. Introduction (200 words)
o Introduce the topic of sustainability and green operations management in manufacturing.
o Define key terms such as "green supply chains" and "circular economy."
o State the purpose of the review and outline its structure.
2. Literature Review (1600 words)
o Green Supply Chains (400–500 words): Discuss sustainable sourcing, eco-friendly materials, and supply chain
transparency.
o Circular Economy in Manufacturing (400–500 words): Examine the principles of the circular economy,
remanufacturing, recycling, and waste reduction.
o Sustainable Production Techniques (400–500 words): Explore energy-efficient technologies, sustainable materials,
and waste management.
o Corporate Social Responsibility (CSR) and Environmental Responsibility (400–500 words): Evaluate how
environmental responsibility is integrated into broader CSR strategies in manufacturing.
3. Conclusion (200 words)
o Summarise the key insights from the literature review.
o Discuss the practical implications for manufacturing companies.
Highlight gaps in the literature and suggest areas for future research © University of South Wales
 Assignment
This structure will help you develop a comprehensive and critical
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literature editonMaster title style
Sustainability and Green Operations
Management in the Manufacturing Sector. If you need
further assistance with narrowing down themes or finding
sources, feel free to ask!

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 How to research Operations Management
Two main sources
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• Practitioner publications, such as
– Harvard Business Review
– The Economist
– X (Formerly known as Twitter)
• Academic journals, such as
– Journal of Operations Management
– Management Science
– International Journal of Operations and Production Management

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 Take away action
Review key
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journals
Academic Journal Guide
2021
https://charteredabs.org
/academic-journal-guide/ac
ademic-journal-guide-2021

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 Wrap up and close

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• Think about what Operations Management is – what does this mean
to you
• Pay close attention to what it is not
• Read through the literature gather the different perspectives,
concepts and theories presented. What are the key debates, views?
• Think about an existing issue that you will cover in your assignment

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 Reading List
• Slack, Nigel, and Michael Lewis. Operations Strategy. Seventh Edition. Harlow,
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England: Pearson, 2023
– ISBN-13: 9781292459288

• Flanagan, J. and McGovern, C., 2022. A qualitative study of improving the

operations strategy of logistics using radio frequency identification. Journal of
Global Operations and Strategic Sourcing.

• Goldratt, E. M. et al. (2004) The goal : a process of ongoing improvement. 3rd

rev. ed. / with interviews by David Whitford. Aldershot: Gower.
– Also available in video in Treforest library - Goldratt, E. M. (2005) The goal.
• Description: DVD
• Status: Treforest Library & Student Centre Main Shelves 658.5 GOA
• Barcode: 13149857
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 Reading List
• Wilson, J.M. (2018), "Deconstructing the reinvention of operations management",
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Journal of Management History, Vol. 24 No. 2, pp. 128-155.

• Fiorentino, R. (2016), "Operations strategy: a firm boundary-based perspective",

Business Process Management Journal, Vol. 22 No. 6, pp. 1022-1043

• Gupta, M.C. and Boyd, L.H. (2008), "Theory of constraints: a theory for operation
s management", International Journal of Operations & Production Management,
Vol. 28 No. 10, pp. 991-1012

• Batista, L., 2012. Translating trade and transport facilitation into strategic
operations performance objectives. Supply Chain Management: An International
Journal.

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