File Name: operations management strategy and analysis .zip
Introduction Globalization has forced corporates to adopt high standards in operations management Slack Adopting corporate management decision ensures sustenance and competitive advantages for businesses.
Operations management is an area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services. Operations management is primarily concerned with planning, organizing and supervising in the contexts of production, manufacturing or the provision of services. Operation management covers sectors like banking systems, hospitals, companies, working with suppliers, customers, and using technology.
Operations strategy underlies overall business strategy, and both are critical for a company to compete in an ever-changing market. With an effective ops strategy, operations management professionals can optimize the use of resources, people, processes, and technology. Technology and business models are rapidly changing, so businesses must keep pace and look to the future. This article will provide an overview of operations strategy including purpose, examples, types, process, and how to write a plan.
Operations management is the profession that encompasses planning, implementing, and supervising that production. Some people think of operations as the daily tasks and tactics that transform materials or actions into a product or service, but operations strategy goes a level higher to determine operations approaches and goals. In a car company, for example, operations could include the following: obtaining and transporting raw materials metal, rubber, and plastic, etc.
In addition, operations could play a role in product design, plant capabilities and design, and production or sales forecasting. Without a strong operations strategy, companies fail to keep up with changing markets and lose out to more strategic competitors.
Many companies, big and small, have struggled with operations strategy, often lacking in comparison with technologically savvy competitors. For example, Amazon, while constantly advancing technology such as drones for delivery, has pushed aside myriad brick-and-mortar retailers. To be effective and competitive, all parts of a company must work together. In addition to having an operations strategy, they should also have functional area strategies in finance, IT, sales, marketing, human resources, and possibly other departments, depending on the type of business.
Companies must innovate, not just play catch-up to practices already mastered by competitors. Authors Steven C. Wheelwright and Robert H. Different sources use different terms to describe strategy areas. By identifying these, a company can focus on the issues that matter most and measure them with key performance indicators KPIs. Author Terry Hill used the terms order qualifier and order winner.
An order qualifier means a company or product has a characteristic that allows it to be a viable competitor. An order winner is a characteristic that causes customers to choose it over competitors. Specific strategies depend on your specific business.
Here are strategy tips that apply to many companies, whether they are producing goods or services. Now, our seven pros weigh in with their tips for creating and implementing effective operations strategies.
Robin Speculand and Tim Lewko were interviewed by phone, and the five others submitted responses in writing. Speculand is the Founder and CEO of Bridges Business Consultancy and Creator of the Implementation Hub , a portal dedicated to strategy implementation and featuring more than resources.
Paraphrased from a phone interview, Robin Speculand advises using the Triple A model of alignment, accountability, and assessment. Alignment: Keep the team focused on balancing long-term and short-term perspectives. Many people trip up on this. You need consistent direction. Accountability: Introduce a culture of holding people accountable.
You need to measure with numbers. Define what an operations strategy means in your organization. Create a common definition because different definitions can cause communication breakdowns. Operations should follow from the company strategy. An operations strategy is an investment in current and future capabilities underpinned by visible assumptions.
What does the team see as the future for the business? When FedEx built a runway in China, some people questioned the move. But FedEx saw a future market there. She started her career as a BCG consultant, advising companies on strategy and operations.
When I first joined Fab. When shipments were late, customer complaints would pile in. Major caution on this one. This idea is actually much more complicated than it seems. As an operations strategist, my first step is to talk to key people on each team separately - not a VP or director-level necessarily, but a few people who are actually responsible for the day-to-day work. I have them walk me through their process end-to-end, and, then, I map it out and review it with them. Once I do this with every team, I come up with a master list of issues and proposed solutions, along with the pros and cons of those solutions.
When you lease a car, you treat that car much differently than one you own. You probably don't clean the car as often, make hard starts and stops, etc. When you own a car, you are much more careful to treat it well, so it stays in good condition over the long term.
When employees own stock in a company, they make decisions that are better for the long term. More than one thing will fall through the cracks. An example in our businesses is ensuring we assign each reservation to the appropriate bus company. We have centralized accountability for every trip with our operations manager.
He can delegate the work but is the only one accountable. Toyota has a great system of doing just that to get to the root of any error. We have found that this works great in our business as well. This way, you can easily get to the true cause of any operational failure and create a system to prevent it next time.
Suresh Dalai has been implementing operations strategies for more than 20 years in Asia and the U. His views expressed in this article are his own and do not necessarily reflect the views of these companies. Make it consumer-driven. Whatever operations strategies you develop, ask whether they help drive superior experience for the consumer — for example, accelerating production so that the consumer can get it faster, improving quality, etc. Make it end-to-end. Many people may think of operations as a back-office activity, such as production or logistics.
However, an operations strategy focuses on the entire value chain, from plan to make to move and then ultimately, to sell.
Ensure that your operations strategy covers all four areas. Make it well-understood by your team. Educate your organization so that everyone understands that operations strategy is always about the consumer. I recommend not trying what first comes to your mind. Before putting something into practice, check that you have all the resources, adequate personnel, and enough time. In some cases, assuming in advance that an idea is going to work can be as expensive as an unsuccessful test.
Have a sole responsible person. It is important that tasks are well organized, and, for this reason, more than one person in one single activity can be problematic. For example, at elMejorTrato, I am the one in charge of link building, and I take for granted that any related activity depends on me.
Have an adjustable working guide. Although it is useful to have a guideline, we always have to be prompt in adapting it to new situations. The market is an environment affected by continuous change, and it is essential to follow the herd customers , modify rules, and make contributions. You need to make sure that you are playing to their strengths. Otherwise, they'll never be able to implement your strategy. Second, know the process. Anybody can determine a bottleneck when they see it, for instance, but do you know the process well enough to know why it happened?
Third, you can't assume you know everything. Don't be afraid to read articles on how your competitors tackle operations problems. With the rapidly changing marketplace in recent years, some companies have excelled in part due to their strong operations strategies. Here a few examples:. We can broadly categorize major operations decisions as structure or infrastructure. Structure means the physical attributes of operations, while infrastructure refers to the people, systems, and software.
Structural decisions include facilities, capacity to produce, process technology, and supply network. An example of a decision many companies face is how much to outsource vs.
The structural decision on whether to build or expand a facility is an expensive one that could affect the company for years to come. Infrastructure decisions include planning and control systems, quality management, work organization, human resources, new product development, and performance management of employees. Another way to categorize operations strategies is top-down or bottom-up.
That is, operations strategies might come down from business strategy, supporting it. Or, strategies might arise over time as a pattern of decisions within operations.
Also, operations strategy can be market-led or operations-led. Operations strategy provides the ability to improve products, services, and processes. To actually win more orders in the market, the factors change a bit. You need winning quality, price, speed of delivery, consistency of delivery, and reliability.
These factors combine like this to provide an operations strategy framework, as outlined by lean transformation consultant Anand Subramanian:.
The objective of this work is to review the literature of the main concepts that lead to determining the strategic approach, creation of strategies, organizational structures, strategy formulation, and strategic evaluation as a guide for the organizational management, taking into account the effects produced by the different types of strategies on the performance of organizations. In this article, the systemic literature review method was used to synthesize the result of multiple investigations and scientific literature. The process of reading and analysis of the literature was carried out through digital search engines with keywords in areas related to the strategic management. This research reveals the lack of scientific literature containing important theoretical concepts that serve the strategists as a guide in the creation, formulation, and evaluation of strategies. This review contributes to the existing literature by examining the impact of the strategic management on the organizational performance. Through time, its meaning has been evolving, being applied to other human activities and, in particular, to business strategies.
The manager who moves from manufacturing to services or the professor who wishes to research and teach service operations must recognise the key differences for developing an appropriate operations management strategy in a service business. For this process to be successful, the operations manager must participate assertively in the strategy debate. What little buffering there is occurs between the front office and the back room. This article outlines and contrasts the processes for both manufacturing and services, paralleling the models of Wheelwright and Hayes and Hill. The observed process differences have major implications for both teaching and research in service operations. The new and interesting issues are predominantly interfunctional and, given the intellectual backgrounds of the various functional areas, interdisciplinary.
Krajewski pdf. Summary: Provides an introduction to the role of operations management and its interface with all functional areas within organizations. This volume includes customer-driven strategies with a revised chapter on process management, such as materials on basic process types and how they relate to competitive priorities. The discussion on Total Quality Management includes coverage of continuous improvement, employee involvement, teamwork, benchmarking, quality function deployment and tools of TQM. Other topics covered include: international operations including outsourcing, virtual corporations, re-engineering, horizontal organizations, employee and team incentive plans, ethics and environmental concerns. A chapter on inventory management includes a supplement on inventory models with updated coverage of economic lot size model, one-period model and quantity-discount model. Krajewski pdf:.
CHECK – ANALYSIS OF RESULTS TO VERIFY PRODUCTIVITY AND Chapter 5 Production Scheduling Approaches for Operations Management . Enterprise risk management for strategic planning. cirp44_managing%20production%elizabethsid.org accessed 20 September
Operational strategies refers to the methods companies use to reach their objectives. By developing operational strategies, a company can examine and implement effective and efficient systems for using resources, personnel and the work process. Service-oriented companies also use basic operational strategies to link long- and short-term corporate decisions and create an effective management team. Corporate strategies involve seeing a company as a system of interconnected parts. Just as the muscles of the heart depend on brain functions in a human body, each department in a company depends on the others to stay healthy and achieve desired outcomes.
Operations strategy underlies overall business strategy, and both are critical for a company to compete in an ever-changing market. With an effective ops strategy, operations management professionals can optimize the use of resources, people, processes, and technology. Technology and business models are rapidly changing, so businesses must keep pace and look to the future.
Мидж долго молчала. Джабба услышал в трубке вздох - но не мог сказать, вздох ли это облегчения. - Итак, ты уверен, что врет моя статистика. Джабба рассмеялся. - Не кажется ли тебе, что это звучит как запоздалое эхо. Она тоже засмеялась. - Выслушай меня, Мидж.
Коммандеру нужно было подняться к себе в кабинет и отключить ТРАНСТЕКСТ, пока никто за пределами шифровалки не заметил этой угрожающей ситуации и не отправил людей им на помощь. Стратмор бросил взгляд на лежавшего в беспамятстве Хейла, положил беретту на столик рядом со Сьюзан и крикнул, перекрывая вой сирены: - Я сейчас вернусь! - Исчезая через разбитое стекло стены Третьего узла, он громко повторил: - Найди ключ. Поиски ключа не дали никаких результатов. Сьюзан надеялась, что Стратмору не придется долго возиться с отключением ТРАНСТЕКСТА. Шум и мелькающие огни в шифровалке делали ее похожей на стартовую площадку ракеты. Хейл зашевелился и в ответ на каждое завывание сирены начал моргать.
Расстроенный, Беккер повесил трубку. Провал. Мысль о том, что придется отстоять в очереди несколько часов, была невыносима.
Он участвовал в разработке ТРАНСТЕКСТА. Он нарушил правила. Из-за него чуть было не произошел полный крах нашей разведки. Я его выгнал. На лице Сьюзан на мгновение мелькнуло недоумение.
Доктор, - повторила. - Скажи первое, что придет в голову. - Ассоциативный ряд? - по-прежнему недоумевал Дэвид. - Стандартная для АНБ процедура.
Возможно, это и есть ключ. - Вот именно, - простонал Джабба.
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