Page 259 - Operations Strategy

234 CHAPTER 7 • ImPRovEmEnT sTRATEgy

Figure 7.1 Issues covered in this chapter

Resource usage

Issues include:
Big radical improvement projects,
Quality Performance measurement used
or small, continuous improvements
Performance objectives Dependability Benchmarking against Market competitiveness
Speed
for setting the direction of
improvement
other operators
Flexibility
Cost Prioritising improvements
Learning and enhancing process
knowledge through control
Expectations of, and contributions
from, the operations function
Development and
Supply Process organisation
Capacity (operations development
network technology
and improvement)
Decision areas

their performance. Many authorities stress the importance of how organisations man-
age their development and improvement efforts. For example:
‘The companies that are able to turn their . . . organisations into sources of competitive
advantage are those that can harness various improvement programs . . . in the service of a
broader [operations] strategy that emphasises the selection and growth of unique operating
[capabilities].’ 1
Yet we must accept some ambiguity as to the role of the development and improvement
activity within operations strategy. On one hand, it is a content decision area in the
sense that there are decisions to be taken about how the operation thinks about and
organises its own development. On the other hand, because we are dealing with the
way in which improvement decisions are made, the topics covered in this chapter could
also be considered part of the process of operations strategy formulation.

Continuous and breakthrough improvement
We will start by revisiting a distinction that was described in Chapter 3 – one that repre-
sents different, and to some extent opposing, philosophies: ‘continuous improvement’
and ‘breakthrough improvement’. One analogy, which helps us to understand the
difference between breakthrough and continuous improvement, is that of the sprint
and the marathon. Breakthrough improvement is a series of explosive and impressive
sprints. Continuous improvement, like marathon running, does not require the exper-
tise and prowess required for sprinting, but it does require that the runner (or opera-
tions manager) keeps on going.

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