A FRAMEWORK FOR

OPERATIONS STRATEGY
Operations design choices
Operations design choices are the decisions
management must make as to what type of
process structure is best suited to produce goods
or create services. It typically addresses six key
areas-types of processes, value chain
integration and outsourcing, technology,
capacity and facilities, inventory and service
capacity, and tradeoffs among these decisions.
Source: T Hill, Manufacturing Strategy: Fast and Cases, 3rd
ed., Burr Ridge, IL McGraw-Hill, 2000, OM
Infrastructure
Infrastructure focuses on the nonprocess
features and capabilities of the organization and
includes the workforce, operating plans and
control systems, quality control, organization
structure, compensation systems, learning and
innovation systems and support services. The
infrastructure must support process choice and
provide managers with accurate and timely
information to make good decisions.
information to make good decisions. These
decisions lie at the core of organizational
effectiveness, and suggest that the
integrative nature of operations
management is one of the most important
aspects of success.
This linkage is described by the four major decision loops
illustrated in Exhibit 4.4. Decision loop #1