Week 2: STRATEGIC APPROACHES AND MODELS IN OPERATIONS MANAGEMENT

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Hayes and Wheelwright's Four-Stage Model

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Hayes and Wheelwright's Four-Stage Model

A framework illustrating the evolution of operations contribution from internally neutral to externally supportive of strategic goals.

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Stage 1 - Internally Neutral

Focus on correcting wrong practices and achieving parity with competitors.

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3

Stage 2 - Externally Neutral

Adoption of best practices to perform on par with industry standards.

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Stage 3 - Internally Supportive

Linking operations strategy with broader business strategy for effective support.

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Stage 4 - Externally Supportive

Driving business strategy by redefining industry expectations and establishing leadership.

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6

Four Perspectives on Operations Strategy

A comprehensive approach consisting of Top-down, Bottom-up, Inside-out, and Outside-in perspectives.

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Top-Down Perspective

Aligning operations function with overall business objectives strategically.

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Bottom-Up Perspective

Utilizing day-to-day learnings and operational improvements to inform strategic decisions.

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Inside-Out Perspective

Developing internal capabilities essential for achieving competitive advantage in selected markets.

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Outside-In Perspective

Defining operational capabilities and strategic adjustments based on market demands and customer expectations.

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