This case study examines the operations strategies of Dell and Schefenacker Vision Systems. Dell utilized a build-to-order model with mass customization, direct sales, and just-in-time inventory to achieve strategic advantages of low prices, quality feedback, and speed. Schefenacker directly supplied car assembly plants, allowing for cost effectiveness and entry into new markets. Both companies emphasized lean production and flexibility to compete on cost, quality, speed, dependability, and flexibility. The document discusses how operations strategy can provide competitive advantage and evaluates the companies' performance on five objectives: cost, quality, speed, dependability, and flexibility.

1. OPERATIONS STRATEGY
IN ACTION
Case Study 2.3 (Andrew Greasley, 2009)

2. Group Members
Miranda Nasasara
Nathan Williams
Subhi Pradhan

3. Case Study Questions
 Discuss how operations can provide
strategic advantage
 Discuss the performance of the company
in terms of the five performance
objectives

4. Table of Contents
 Case Study Summary
 Define the role of Strategy
 Levels of Strategy
 Operations Strategy and Its Importance
 Strategic advantages
 Five performance objectives
 Conclusion/Recommendations
 References

5. Case Study Summary
 Companies restructuring to tackle
negative changes in the economy
through its operations
 Corporate Strategy →Operations
Strategy
i. Dell the undisputed leader (PC
industry)
ii. Schefenacker Vision Systems (car
wing mirrors)

6. Strategy:
An Overview
 “ Strategy is about setting broad
objectives that direct an enterprise
towards its overall goal” (Slack and
Lewis, 2008).
 “Strategy is about doing the right things”
(Collins, 2008)

7. Levels of Strategy
 Corporate Strategy
 Business Unit Strategy
 Functional Area Strategies

8. Operations Strategy & Its
Importance
 “This concerns the pattern of strategic
decisions and actions which set the
role, objectives and activities of
operations” (Slack et al., 2004).

9. Strategic Advantage Through
Operations
 Achieving Strategic Advantage Through
Operations
a) Competing on Differentiation
b) Competing on Cost
c) Competing on Response

10. Q1: Dell Operations
System
OPERATIONS STRATEGIC ADVANTAGE
Build-to-Order Manufacturing and Low Price/ Increase Market share
Mass customization
Direct Selling Intelligence about customer
preferences and needs; Quality
feedback; Speed
Virtual Integration and Information Immediate Access to Customers and
Sharing Partners
Committed to Just-in-Time Inventory Cost advantage; Speed

11. Schefenacker Vision
Systems
OPERATIONS STRATEGIC ADVANTAGE
Direct supply to car assembly Entry into international business
Cost Effective
Virtuosity Increase market share
Expand the value chain
Lean productions Reduction of waste in supply chain

12. Q2: Definition of Five
Performance Objectives
What is Five Performance Objectives?
 Definition: “A criterion against which to
evaluate the performance of operations.”
 (Slack et. al., 2004)

13. The ‘Sand cone’ model of
Operations Excellence
Source: , Ferdows, K. and Meyer, D (1990) Lasting Improvements In
Manufacturing Performance. The Journal Of Operations Management,
Pg 168–184.

14. Five Performance Objectives
EXCELLENT OPERATIONS GIVES THE ABILITY TO
PERFORMANCE IN …. COMPETE ON…
Cost Low Price
Quality High Quality
Speed Fast Delivery
Dependability Reliable Delivery
Flexibility Frequent new products/services
Wide range of products/services
Changing the volume of
product/service
deliveries
Changing the timing of
product/service
deliveries
Source: Slack and Lewis (2001)

15. Dell/Schefenacker
Dell Schefenacker
 Well known brand.  Able to satisfy most
 Cheap. demanding customers.
 Good quality.  Cost effective.
 Able to alter production  Able to design and build
for customer demand. better parts.
 Good warranties.  Extra space for
production cells.

16. Discussion Question 1
 How well do you think Dell’s
manufacturing strategy supports its
competitive priorities for the
personal computer market?
 What changes, if any, would you like
to suggest?

17. Recommendations
 What about the non-expert buyers?
 Dells supply chain is shrinking
1. HP's retailing prowess,
2. Apple's product design and
3. Acer's low costs

18. References
 Collins, D. J. and M. G. Rukstad. (2008) Can you say what your
strategy is? Harvard Business Review. 82-90.
 ReComparison (2011) Dell vs HP. Available at
www.recomparison.com. [Last Accessed on 15th
November, 2011].
 Greasley, A. (2009) Operations Strategy in Action. 2nd
edn, Chichester, England: John Wiley & Sons.
 Helium Leak Detector (2011) Best Quality Laptop Computer
Brands-Comparison of All Well-Known Laptop Computer
Manufacturing Companies in the Marketplace. Available at
www.heliumleakdetector.com . [Last Accessed on 15th
November, 2011]
 Ferdows, K. and Meyer, D (1990) Lasting Improvements In
Manufacturing Performance. The Journal Of Operations
Management, 168–184.

19. Cont…
 Lewis, M. and Slack, N. (2008) Operations strategy . 2nd
edition, Harlow: FT Prentice-Hall.
 Prahalad, C.K. and Hamel, G. (1990) The core competence of
the corporation’, Harvard Business Review. 68(3):79–91.
 Reisinger, D. (2010) Dell’s HP Opportunity: 10 Things It Can
Do to Capitalize on Mark Hurd’s Departure. Channel Insider.
 Slack, N. and Lewis, M. (2001) Operations Strategy . European
Edition, FT Prentice-Hall: Financial Times.
 Slack, N., Chambers, S. and Johnston R. (2004) Operations
Management. 4th Ed., Harlow: Pearson Education.
 The Manufacturers US (2010) Schefenacker, Clear View. The
Manufacturer. Available on www.themanufacturers.com. [Last
Accessed on 14th November, 2011].

20. ANY
QUESTIONS?