Operations strategy is the structure of plans for the optimum allocation of the resources of the organization for the purpose of production. It specifies the plan of action by which it can allocate its resources to meet its long term competitive strategy. Operation strategy is based on the business strategy of the organization so as to necessitate effective production. To put it in simple words, it is the effective use of the resources such as location, size, available facilities, labor skills, technology, processes and equipment and machinery.
Need for Operation Strategy:
Operations strategy wasn’t much of a concern until 1970s. Until then U.S companies had market dominance for the reason that not much players were functioning in the international
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Such specified requirements are categorized into two divisions, namely, Structure and Infrastructure. They are the decisions relating to design of the production process and planning of the operation, combined together to determine the company’s operation function. For ex. If at all time and speedy delivery is the order winner and competitive priority, our production process would be such as to promote the speedy delivery of products. Best example to quote here is that of Dell Computer Corporation. They set up a system in which customers could directly order a computer from the company rather than going through a retailer. A warehouse system was designed in such a way that when the order was placed by a customer, the components would be brought in from the suppliers only then. The suppliers shipped the components within 15 minutes. On the contrary Dell’s competitors required hours or days to get the components. This system helped Dell in reducing their inventory capacity to a greater extent. They further increased their speed by setting up a shipping arrangement with United Parcel Service (UPS). It is therefore, very much clear and understanding as to how an operations strategy must be developed and which competitive priorities should be focused on. A company must make trade-offs in deciding competitive …show more content…
Productivity should be measured from supply chain to final output. It is the collective productivity of individual process that brings in the difference. The objective of measure of productivity is to increase the value of output relative to the cost or the quantity of input.
OM as a set of decisions:
Operation manager’s decision should speak of business strategy. All plans and actions should be related to other functions to support the company’s aims and objectives. Effective management of all the resources of a company are essential for the success of any process and supply chain.
Addressing the challenges in OM:
One way for the companies to meet the challenges is to recognize them as opportunities to improve the existing processes and create new innovative ones. Management of processes requires the ability to meet the goal goals for which they’ve been set up. Operations decisions follow clearly defined operations
Operations refers to the transformation of raw materials(inputs) into finished products(outputs). The operations process is one of the key business functions and is a crucial component to business success. Like every business, Qantas is affected by many internal and external influences requiring it to have effective strategies to respond to these influences. Businesses that are able to adopt and utilise effective operational strategies are able to quickly adapt and either reduce or take advantage of these influences that impact the business. The effectiveness of these strategies can measured by Qantas’ performance and whether or not it is able to hold it’s competitive advantage. How well these strategies respond to the influences on operations will determine the level of success that Qantas achieves.
Operations management is essential for the survival and success of any organization. According to Heizer & Render (2011), operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Operations managers today contend with competition, globalization, inflation, consumer demand, and consistent change in technology. Managers must focus on the efficiency and effectiveness of processes such as cost, dependability, distribution, flexibility, and speed. The intent of this paper is to discuss the processes and operations management of the Kroger Company.
Operations are all the processes in transforming inputs into desired outputs. These processes must be efficiently and effectively coordinated by managers and eventually they must accomplish specific organizational goals. All operations, despite how well managed they are, are capable of improvement. In order for the operations to be improved however, weaknesses should be identified first. Therefore operations need some kind of performance measurement as a prerequisite for improvement.
At present, every organization believes that operations management plays a pivotal role in establishing and maintaining global leadership, and is a part of the overall organizational strategy. The strategic part that operations management plays in hierarchical execution can be seen as more companies are moving towards dealing with their operations from a value chain viewpoint. There are many reasons that support, operations management an important element for the success of the business. It encompasses manufacturing and services, and its essential in adequately and effectively dealing with the productivity as every company ought to have high productivity which can prompt economic growth and development and help the company’s work force in getting high wages, as well as lead to a rise in organization's profit. Operations management is likewise imperative as it plays a major role in any company’s
Tactical plans have shorter time frames and narrower scopes than strategic plans. Tactical planning provides the specific ideas for implementing the strategic plan. Operational plans support tactical plans and are the tools for executing daily, weekly, and monthly activities. They include policies, procedures, methods, and rules. GE has essentially grown in size and benefits since 1980’s. GE centralized financial management and strategic planning control, and practiced strategic planning management.
Operations management strategies play an important role in any organization to achieve organizational goals. An organization uses these operations strategies to maintain and control all its operations...
Slack, N., Chambers, S., Johnston, R., Betts, A.,(2009). Operations and process management: Second edition. Harlow: Pearson Education Limited
To understand operational planning, a basic background in the planning process is required. Corporations today use a top down approach to map an organizations future.
Slack, N. & Lewis, M. (2011) Operations strategy. 3rd ed. Harlow : Financial Times Prentice Hall.
Productivity is the quantity of output formed by one unit of production input in a unit of time. Inputs used in the production of the goods and services are the major determinants of any country’s productivity they are also called factors of production. There are four major determinants of productivity of any country’s economy.
In every organization, different operational functions exist to ensure the smooth learning of the organization. In order for an individual to have the knowhow on how to operate the functions delegated to them they must have implicit knowledge on the functionalities themselves. Understanding markets, customers and the company goals has always proven to be a core starting point for individuals who ply their trade in the organization. The essence of the skills is evident in globalization, cooperate social responsibility and risk management issues. In operations management, the basic principles of operations should be followed to ensure that the profitability of the organization ensures the operation of the organization is
Once plans have been developed, an organization must address how management will be accomplishing be those plans. This involves operational plans that must flow from strategy; specify resource, time issues, and commitment of human resources. Operational plans at the lower - levels of the organization, have a shorter time horizon, and are narrower in scope (Bateman, Snell 2003 p.113). A good example of this is Wal-Mart's main strategic goal. It is to provide quality merchandise at an affordable low cost to consumers. Its operational goals focus on efficient logistics requiring technology and inventory management systems to help reduce costs so it can be passed on to the customer. Operational plans are derived from a tactical plan and are aimed at achieving one or more operational goals (Bateman, Snell 2003 p.113).
According to Aquilano, Chase, and Jacobs (2005), "Operations management (OM) is defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services" (p.19).
University of Phoenix(Ed.).(2003) Operations management for competitive advantage[University of Phoenix custom edition e-text]. New York: McGraw-Hill. Retrieved February 01, 2005, from university of phoenix, Resource, MGT554- operations management website: https://mycampus.phoenix.edu/secure/resource/resource.asp
Human Resources professionals (HR) initial roles remain closely aligned with personnel and administration, performing duties such as hiring people, budgeting, to help their organization function well. However, effective HR Professionals serve a much more pertinent role to their organization, by using their knowledge skills and abilities to help their organization become more successful. Thus, it is important for HR professionals to work closely with the management they serve in order to gain a better understanding of the organization’s vision, and what the organization hopes to achieve. Human Resource Management needs to align their strategic planning with the organization’s strategy in order to develop and maintain a completive advantage in the field they are competing.