Operations Management

9 Pages 2294 Words

o customers want? Customers have six requirements of their providers: High levels of quality. High levels of service. Low costs. OPERATIONS STRATEGY An organizational commitment with wide ranging effects, such as continuing improvement in meeting customer needs, is called a strategy. Strategy itself is necessary because of competition, and successful strategy ensures that company strengths match customer requirements. Integrated Business Strategy To accomplish its aims, the business team must plan strategy in all four-line functions. A comprehensive strategic business plan deals with issues affecting the whole organization: employees, markets, location, line of products and services, customers, capital and financing, profitability, competition, public image and so forth. OM strategies should be consistent with the business plan, but with a narrower focus: Capacity (operating resources): front-line and support people, information, equipment and tools, materials, location (space). Products, processes, methods, and systems: Strategies might include level of investment in product and process development, standardization, and manual versus automated information processes. Outputs: Quality, cost, lead-time, flexibility, variation, and service. Operations Managers translate that business strategy into an operation strategy of developing two new fitness-related services, which will maintain high utilization of staff and space, as substitutes for two other services that are declining in popularity. 1. Companies A and B. Two companies, both manufactures of shoelace extender, have the same dominant business strategy: rapid customer service. Although the business strategy is the same at both companies, Company B’s operations strategy will provide superior customer service and overall success. Distinctive competencies might be obvious to customers; fast service, very clean premises, and superior quality are examples. All have dependably high quali...