Tag Archives: economies of scale

Shared services at BAESystems

BAESystems is the UK’s largest defence and security company, employing 39,000 people.  It has four main operational divisions – maritime, regional aircraft, military air & information, and applied intelligence (cyber operations).  To support these, the company has a fifth division … Continue reading

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Category management jargon – the relevance of finger space

As I explained recently, looking at the jargon used by any group of professionals provides great insight into how they manage their operations.  So I was interested to see this glossary of terms used in category management.  Many of these terms … Continue reading

Posted in Chap 06 Materials and inventory, Sector: Retail | Tagged , , , | Leave a comment

Burger & Lobster chain failing growth stage of SFLC?

I’ve always been a fan of the ‘service firm life cycle’ (SFLC) despite the fact that it is judged to be old-fashioned and too simplistic by some experts.  I remain a fan because time and time again the concept and … Continue reading

Posted in Chap 03 Processes and life cycles, Sector: Hospitality & Tourism | Tagged , , | Leave a comment

How economies of scale lower costs

One of the earliest ways in which it was possible to achieve cost leadership was to create economies of scale.  This meant firms needed to become big and have large production volumes. This is because, in general, as the volume of production goes up, … Continue reading

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How small national airlines can create economies of scale – by copying hotel brands

Interesting interview with Peter Davies, former CEO of Air Malta, analysing how small national flag carriers in Europe can compete with low cost carriers and international airlines.  These national carriers are outcompeted on price on their short haul routes by … Continue reading

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So what are the big supermarket brands order winners – if not price and quality?

Lovely (?) article in The Guardian by Joanna Blythman, author of Shopped, who basically says I told you so…  Her book, published ten years ago, was a major indictment of the large supermarket chains.  In her view they had “closed … Continue reading

Posted in Chap 02 Winning Customers, Sector: Retail | Tagged , , , , | Leave a comment

Many more car recalls to come – due to diligence, parts sharing & extended supply chains

This week Toyota recalled 1.75 million vehicles to have various faults rectified.  These were: brake problems on Crown Majesta, Noah and Voxy models faulty fuel delivery systems on Lexus models potential fuel leaks on Auris models None of these faults … Continue reading

Posted in Chap 09 Quality, Sector: Manufacturing | Tagged , , , | Leave a comment

Gone before anyone knew it existed?

On this morning’s Today programme, I heard a reference to the National Policing Improvement Agency (NPIA), an institution that I had not come across before.  So I went to their website to find out more – thinking this may be … Continue reading

Posted in Chap 01 Introduction, Sector: Public Services & Charities | Tagged , , | Leave a comment

Scaling up innovation- from high cost prototype to low cost product on the shelf

On page 317, we discuss the “process and system design stage” of the innovation process – the idea that not only do you need to create a new product, but you also have to design the way in which it … Continue reading

Posted in Chap 12 New products and services, Chap 16 Innovation and CI, Operations Management | Tagged , , | Leave a comment

The relationship between quality, volume and cost

In this blog, Paul Thompson critiques United Airline’s new operations strategy.  In particular, the decision to call this ‘Project Quality’, when it is designed to save the airline $2 billion annually by 2017.  This brings out two interesting points… First, … Continue reading

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