Production and Operations Management Systems Chapter 1: Introduction

Stage 4 Companies

• A Stage IV company is a P/OM innovator--more in Chapter 11.
• It has short-and long-term planning horizons that are integrated.
• Both require that P/OM be a part of the top management strategy team.
• W&H* describe such firms as externally supportive, which means that competitive strategy ‘‘rests to a significant degree on the firm’s manufacturing capability.’’
• C&H* conclude that Stage IV firms offer services that ‘‘raise customer expectations.’’ Stage IV firms use the systems approach to integrate service and manufacturing activities.
• *Source: Chase, Richard B., and Robert H. Hayes, Beefing-Up Operations in Service Firms, Sloan Management Review, Fall 1991, pp 17–28. (C&H)
• *Source: Wheelwright, Steven C., and Robert H. Hayes, Competing Through Manufacturing, Harvard Business Review, January–February 1985, pp 99–109. (W&H)