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Operations Management (Performance objectives (Flexibility, the ability to…
Operations Management
The market conciliation model of operations strategy (Reading 12,
Block 1, big ideas p 103).
operations strategies can be driven by a corporate or
entrepreneurial vision.Many entrepreneur take very personal view of
how
to con
figure their operations, ignoring the theory of how operations
should
be designed. Sometimes this original thought creates a highly
unique idea of how
customers can be served
(Reading 12 block 1, Big ideas).
one authors link operations strategy to the ideas used in the strategic
management literature of competences or capabilities. Can organizations exploit their operations.
competences or performance capabilities int he
marketplace?
The classic example of this is Honda, which has distinct
competence
in the design and manufacture of small,light weight engines,
allowing the company to enter markets as diverse as motorbikes,lawnmowers and snowblowers
( Reading 12 block 1, big ideas p103).
The predominant theme is one of market in
influence. Operations strategy
decisions are taken
in the context of the market position of the
organization,taking into consideration any differing requirements based
on different markets or segment (Reading 12,
Block 1, big ideas p 103).
operations strategy marketing
influence
model (Reading 12,
Block 1, big ideas p 105).
Operations
capabilities
and capacities, The marketing function also places demands on operations requirements
because of their decisions about their choices of markets to enter,their
market positioning and their choices to segment markets and serve different
types of customers. (Reading 12,
Block 1, big ideas p 105).
Market Segmentation (Reading 12,
Block 1, big ideas p 105).
Operations Performance requirements (Reading 12,
Block 1, big ideas p 105).
Marketing strategy (Reading 12,
Block 1, big ideas p 105).
Operations strategy (Reading 12,
Block 1, big ideas p 105).
Competitive strategy (Reading 12,
Block 1, big ideas p 105).
‘ the pattern of strategic decisions in the action that set the role, objectives and activates ‘(Sack et al., 2010). (Reading 12,
Block 1, big ideas p 102).
the pattern of strategic decisions and
actions that set the role,objectives and activities of the operation.(Reading 12,
Block 1, big ideas p 102).
Key operations Strategy questions(Reading 12,
Block 1, big ideas p 102).
supply chain development:- Key questions!
How much of the total value chain do we
own?
How many suppliers should we have?
How global is our supply network?
Do we outsource non-core activity?
Do we maintain long-term relations with key
suppliers?
(Reading 12,
Block 1, big ideas p 103).
Technology:- Key questions
How automated are our processes?
How integrated are our systems?
How dedicated is our technology?
What scale should our technology operate at?
Who uses our technology?
(Reading 12,
Block 1, big ideas p 103).
capacity and facilities:- Key Questions!
How many facilities should we have?
How big should each site be?
Where should these be located?
Do we build capacity ahead of when it is
needed?(Lead or lag?)
Do the sites do similar different things?
Are the sites coordinated or do they work
independently? .
(Reading 12,
Block 1, big ideas p 102).
workforce:- Key Questions !How hierarchical is our management structure?
How central is our planning and coordination?
How do we group our departments?
What skills and capabilities do we develop in our workforce?
How much discretion do we give employees?
How do we manage shifts or work patterns?
(Reading 12,
Block 1, big ideas p 103).
Performance objectives
Speed, to perform a operation is the shortest of time.(Reading 12,
Block 1, big ideas p 111).
Flexibility, the ability to change what you do,
• Variety
• flexibility
• is the ability to produce more than one type of
• product
• or service.
• Mix
• flexibility
• is the ability to cope with different types of
• customers or products at the same time or in a close sequence.
• Volume
• flexibility
• is the ability to adjust how much you produce
• dependent
• on market demand.
(Reading 12,
Block 1, big ideas p 111).
Performance objectives are regarded as the drivers of operations strategy
decisions.
The quality performance of a system is substantially determined by
Operations strategy decisions, especially those linked to process design and
employee
involvement.
When organizations have to pursue speed-based objectives,you can see
wide variety of decisions that help achieve these aims.
(Reading 12,
Block 1, big ideas p 111).
Quality,Sometimes operations need to perform a task in the shortest possible
time span. (Reading 12,
Block 1, big ideas p 111).
Most existing operations strategy decisions aiming to improve sustainability
performance tend to focus on environmental sustainability.Existing
practices concentrate on issues such as their education of CO2,emission.
(Reading 12,
Block 1, big ideas p 111).
Cost
It seems obvious that, In most of markets, customers will
consider price as one of the email n buying criteria. Although there is n
always a link between unit cost and price, producers in markets that are
price-sensitive will have to adjust their operations strategy to take
account of the cost impact of their decisions. The total unit cost is
influenced directly by factors such as the cost of materials
(Reading 12,
Block 1, big ideas p 108).
Market Segment focus operations,(Reading 12, Block 1, big ideas p114
Market segment
There are many examples of operations where a different processor
facility is used for each markets segment. You might see distributors that
serve wholesale retail customers in separate facilities.
concentrating on specific performance objective
Many operations will split their facilities into separate sections by
performance requirement.
volume
Many systems are divided by volume, making prototypes
In specialist
Facilities away from the higher-volume operations.
Technology specialty
Some operations need to be split just because they use different
Technologies,(Big ideas, p114)
performance trade-offs
Operations cannot be good at everything. It would be extremely unusual for
one organization to be able to deliver a product or service with
the highest quality in the marketplace, with the greatest levels of customization and
variety, in the fastest time and at the lowest cost.(Big ideas, p114)
Management Organisation is referred to competitive/marketing strategy. Business practice are well-defined and clearly articulated in both company and theory applied in terms of academic explanation. Organisation has other strategy such as operations. Some business lack operations managers at director level.
Planning is key and will happen incrementally than other strategies but will not always be the case and will only be achieved when incrementally takes place rather than other strategies. (Reading 12,
Block 1, big ideas p 102).