Page 14 - Operations Strategy

LIST OF FIgureS, TAbLeS And exhIbITS FrOm CASe STudIeS xiii
Figure 4.1 This chapter looks at capacity strategy 121

Figure 4.2 Some factors influencing the overall level of capacity 124
Figure 4.3 Cost, volume and profit illustration 128
Figure 4.4 Unit cost curves 128
Figure 4.5 Expanding physical capacity in advance of effective
capacity can bring greater returns in the longer term 132
Figure 4.6 Some factors influencing the number and size of sites 133
Figure 4.7 Some factors influencing the timing of capacity change 136

Figure 4.8 (a) Capacity-leading and capacity-lagging strategies and
(b) Smoothing with inventory means using the excess
capacity of one period to produce inventory which can be
used to supply the under-capacity period 137
Figure 4.9 (a) Capacity plans for meeting demand using either 800- or
400-unit capacity plants and (b) Smaller-scale capacity
increments allow the capacity plan to be adjusted to
accommodate changes in demand 139
Figure 4.10 Rarely does each stage of a supply chain have perfectly
balanced capacity because of different optimum capacity
increments 141
Figure 4.11 Some factors influencing the location of sites 144

Figure 5.1 Issues covered in this chapter 155
Figure 5.2 Supply networks are the interconnections of relationships
between operations 156

Figure 5.3 (a) Dyadic relationships in a simple supply network and
example (b) Triadic relationship and example 157
Figure 5.4 The value net (based on Brandenburger and Nalebuff) 160

Figure 5.5 Wimbledon’s tennis balls travel over 80,000 kilometres
in their supply network 164
Figure 5.6 Types of supply arrangement 166

Figure 5.7 The decision logic of outsourcing 169
Figure 5.8 Generic sourcing strategies 171
Figure 5.9 Supply arrangements are a balance between contracting
and relationship 172
Figure 5.10 Elements of partnership relationships 174
Figure 5.11 Cooper Bikes supply chain 180
Figure 5.12 Fluctuations of production levels along supply chain
in response to small change in end-customer demand 183
Figure 5.13 Potential perception mismatches in supply chains 185

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