2 nd Meeting OPERATIONS STRATEGY UNIVERSITAS TEUKU UMAR
Review’’ What is an Operations Management ’’ … UNIVERSITAS TEUKU UMAR
UNIVERSITAS TEUKU UMAR DEFINITION OF OPERATIONAL STRATEGY ACCORDING TO EXPERTS Operational strategies help in designing efficient and effective work systems to optimize the use of Company resources. Heizer, Render, et al (2020) Operations strategy involves formulating decisions regarding process design, including the selection of production technology and determining the scale of operations in terms of operational efficiency. Y.G. Mamelas , P. Kindangen , J.J (2023) An operations strategy is a set of principles or rules that guide a company's overall operational decision-making. EngageBay (2025) What is an Operations Strategy ’’
UNIVERSITAS TEUKU UMAR Operational Strategy Objectives Supporting core business objectives Enhancing competitiveness Optimizing resources Ensuring customer satisfaction Driving innovation and sustainability
UNIVERSITAS TEUKU UMAR Competitive Priorities Quality Cost Delivery Speed Flexibility Innovation
UNIVERSITAS TEUKU UMAR Components of Operations Strategy Capacity Strategy Location Strategy Technology Strategy Facility Layout HR Strategy Supply Chain Strategy Quality Management
UNIVERSITAS TEUKU UMAR Types of Operational Strategy Make to Stock (MTS) Assemble to Order (ATO) Make to Order (MTO) Engineer to Order (ETO)
UNIVERSITAS TEUKU UMAR Challenges in Operations Strategy Globalization and international competition. Rapid technological change (digitalization, AI, IoT). Fluctuations in consumer demand. Sustainability and green operations issues.
UNIVERSITAS TEUKU UMAR Application Examples Toyota: Lean manufacturing operations strategy (efficiency and zero waste). https://www.youtube.com/watch?v=Bk0BbznfpBg Amazon: Technology-driven operations strategy and speed of delivery. https://www.youtube.com/watch?v=h5PebKpqCkc Unilever: Operations strategy focused on sustainability and global supply chain. https://www.youtube.com/watch?v=GHNuOLrAwlo