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Strategic Operations Management

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Table of contents

1) Introduction 3

2) Value Chain in the Airline Industry 3
2.1 The Generic Value Chain in the Airline Industry 3
2.2 The Importance of different Operational Value Adding Activities 6

3 Operations Strategy 7
3.1 Determinants of the Operations Strategy 7
3.2 The Operations Strategic Objectives 8
3.3 Operations Strategy 10

4 Operations Management 10
4.1 Process Design 10
4.1.1 Process design 10
4.1.2 Supply Network Design 12
4.2 Planning and Control 13
4.3 Improvement 14
4.3.1 Operations Improvement 14
4.3.2 Failure Prevention and Recovery 15
4.3.3 Quality Planning and Control 16

5) Outlook: Challenges for Operations Management in the Airline Industry 18

6) References 19

1 Introduction
The …show more content…

In the transformation process, value is added to the end product by both primary and support activities. The support activities include infrastructure, human resource management and inbound/outbound logistics. While the primary activities consist of marketing, sales & services, supply network management, technology development and operations.

In this transformation process, value is added to the end product by both primary and support activities. In the airline manufacturing industry, the most important primary areas of the intra-company value chain of the lead firms are Marketing and Operations, as highlighted in the table below.

Value Adding Activities of the Aircraft Manufacturer Figure 1: Typical value adding activities for a commercial aircraft manufacturer

Primary Activities
Marketing, sales and services:
This part is one of the most important because it identifies through research what is the demand and where value can be added and transformed into a point of difference. This way value can be added and

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