...1) According to Slack and Lewis, operations strategy holds the following definition “Operations strategy is the total pattern of decisions which shape the long-term capabilities of any type of operations and their contribution to the overall strategy, through the reconciliation of market requirements with operations resources” Operations strategy is a long range business plan for the company’s and which will provide road map to the operations functions to be pursued. Elements of operation strategy Operations strategy comprises six components: 1) Designing of the production system 2) Facilities for production and services 3) Product or services design and development 4) Technology selection, development and process development 5) Allocation of resources 6) Focus on facilities planning 1. Designing of the production system It involves selecting the product design, the production system and the inventory policy for the finished goods for each product line. A). Product Focused (Customized Design): Generally employed in mass production organizations, where there are groups of machine, tools and workers arranged according to their respective tasks in order to put together a product. B).Process Focused (Standard Design): It is designed to support production departments that perform a single task like painting or packing. These systems are highly flexible and can easily be modified to support other product design. 2. Facilities for production...
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...international journal of production economics ELSEVIER Int. J. Production Economics 35 (1994) 107-l 14 Trends in inventory management M.C. Bonney Department qf’ Manyfacturing Engineering and Operations Management. Universit.v qf Nottingham, UK Abstract Inventory management is one of the success stories of recent years and it is changing rapidly in response to international competition and new technology. This paper examines some of these developments. Inventory is a major investment in most companies. It strongly influences the internal flexibility of a company, e.g. by allowing production levels to change easily and by providing good delivery performance to customers. Yet inventory ties up working capital and space and it can suffer from obsolescence, deterioration and shrinkage. It can also add to administrative complexity. In recent years attention in manufacturing industry has concentrated on an ‘inventory is waste’ philosophy using JIT production, usually accompanied by visible ‘pull’ or consumer demand driven systems. The approach is also very effective in supermarket retailing and, at its best, provides very high stock turn and high profits to the company at the same time as providing good service and fresh items to customers at low cost, Current changes in inventory management consider the total logistics chain under the term logistics management, place a greater emphasis on purchasing rather than producing in-house and use more international sourcing...
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...Bettley-3283-02.qxd 6/6/2005 5:06 PM Page 10 2 Operations-based Strategy Robert H. Hayes and David M. Upton Strategic planning tends to be thought of as a high-level game of chess: a ‘grand plan’ is formulated in the executive suite, and then the implementation of the different moves (the ‘easy part’ of the job) is down loaded to the operations organization. However, the world of strategy from the perspective of operations is usually much messier. The ‘strategy’ is seldom evident until after its implementation is well along. Instead, people throughout the organization are continually identifying opportunities, developing new knowledge and capabilities, and testing out their ideas. Initiatives are undertaken, changed in midcourse as new information becomes available and better ideas surface, and sometimes abandoned so that energy can be focused on a different approach. The battle is won not in the boardroom but in the laboratories, on factory floors, at service counters, and in computer rooms. Operations’ role is larger than just that of implementer of strategy; it is the foundation for – indeed, the driver behind – successful strategic attacks and defenses. The important implication for company leaders: companies that fail to exploit fully the strategic power of operations will be both hampered in their own attacks and vulnerable to those of competitors that do exploit this power. Nowhere is this clearer than in cases where large companies that have established...
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...1. “Operations can make or break a business”. For an organization, operations include all the activities necessary for the fulfillment of customer requests, not just manufacture, also marketing, HRM, accounting, etc (Slack, Chambers and Johnston 2007, p5). Through operations, business provide products and service by changing inputs to outputs. Operations excellence is fundamental to strategic success. And according to Skinner (1969), operations management (OM) can contribute to better company performance like reduced cost, increased revenue, etc. As a kind of understanding, whether a company has good operation strategies and management is one important factor that can “make” or “break” a business. Operations strategy (OS) can guide the whole business progress in the long-term. It is concerned with how the market is changing and what the operation has to do to meet current and future challenges (Slack & Lewis 2011, p7). Motivation behind strategic operations is two-fold: superior class of public utility and profitability (Narayanaswami and Rangaraj 2012, p102). One useful tool in formulating OS is OS matrix. It enables company to consider how resources can be effectively used to affect quality, speed, dependability, flexibility and cost, in order to meet market requirements. One good example to explain the importance of OS/OM is Hagen Style. Hagen Style is a successful kitchen equipment company in North America and its success owes to its direct marketing operations, along...
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...Operations Strategy Operations Strategy PGP – Term 8, 2016 Overview: Operations is the ‘how’ we do things regarding of what function we work in an organization – Accounting, HR, IT, Marketing, Operations, R&D, Sales or Supply chain – and strategy is the general direction for aligning operations in the organization to its strategic objectives and within its context. All CEO surveys in recent years list among their top-5 concerns: how to grow revenues, how to make their organization more efficient, and how to lower costs. Achieving these is the remit of operations strategy. Overall we wish to figure out how we can achieve desired strategic objectives of an organization across multiple functions, and even across organizations through analysis –qualitative as well as quantitative – and managing change. Module Leaders: Professor ManMohan S. Sodhi Cass Business School City University London manmohan_sodhi@isb.edu Professor Haresh Gurnani School of Business Wake Forest University hgurnani.isb@gmail.com (Professor Sodhi will lead Sessions 1-5 and Professor Gurnani Sessions 6-10.) Course objective and content: The overall goal is to develop an understanding of how to determine the general direction to ensure that the decisions being made to improve or create operations are coherent, i.e., towards the same organizational objectives. We will refer to a framework (7V framework under development by Professor Sodhi) as a lens for viewing and re-positioning...
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...OPERATIONS MANAGEMENT -1 Term 2, B2014-16, Oct-Dec 2014 Operations Strategy OPM 1 Term 2, B2014-16, Oct-Dec 2014 Session 02 Operations Strategy Prof. Kedar P. Joshi MISSION & STRATEGY OPM 1 Term 2, B2014-16, Oct-Dec 2014 Session 02 Operations Strategy Prof. Kedar P. Joshi 2 Developing Missions and Strategies Mission statements tell an organization where it is going The Strategy tells the organization how to get there OPM 1 Term 2, B2014-16, Oct-Dec 2014 Session 02 Operations Strategy Prof. Kedar P. Joshi Mission Mission - where are you going? Organization’s purpose for being Answers ‘What do we provide society?’ Provides boundaries and focus OPM 1 Term 2, B2014-16, Oct-Dec 2014 Session 02 Operations Strategy Prof. Kedar P. Joshi Strategic Process Organization’s Mission Functional Area Missions Marketing OPM 1 Term 2, B2014-16, Oct-Dec 2014 Operations Session 02 Operations Strategy Finance/ Accounting Prof. Kedar P. Joshi Sample Missions Sample Company Mission To manufacture and service an innovative, growing, and profitable worldwide microwave communications business that exceeds our customers’ expectations. Sample Operations Management Mission To produce products consistent with the company’s mission as the worldwide low-cost manufacturer. OPM 1 Term 2, B2014-16, Oct-Dec 2014 Session 02 Operations Strategy Prof. Kedar P. Joshi Sample Missions Sample...
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...Ted James Operations Strategy Download free ebooks at bookboon.com 2 Operations Strategy © 2011 Ted James & Ventus Publishing ApS ISBN 978-87-7681-828-9 Download free ebooks at bookboon.com 3 Operations Strategy Contents Contents 1 Introduction 7 2 Defining Operations Strategy 8 2.1 What is Operations Management? 8 2.2 The Role of Services in Operations Management 8 2.3 What is Strategy? 9 2.4 What is Operations Strategy? 10 3 Operations Strategy Formulation 11 3.1 Hill framework for Operations Strategy Formulation 11 4 Lean Operations 13 4.1. Eliminate Waste 13 4.2 Involvement of Everyone 14 4.3 Continuous Improvement (CI) 14 4.4 Implementing Lean 14 5 Business Process Reengineering (BPR) 17 5.1 Implementing Business Process Redesign 17 Please click the advert The next step for top-performing graduates Masters in Management Designed for high-achieving graduates across all disciplines, London Business School’s Masters in Management provides specific and tangible foundations for a successful career in business. This 12-month, full-time programme is a business qualification with impact. In 2010, our MiM employment rate was 95% within 3 months of graduation*; the majority of graduates choosing to work in consulting or financial services. As well as a renowned qualification from a world-class business...
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...Operation Strategy For an organization to perform well across all levels, layers, horizontally as well as vertically, it requires cooperating as a harmonious single system combining interdependent areas of expertise by coordinating between different roles or units to achieve integration and thus collectively creating value (Child, 2005). According to Child (2005), due to globalization through expansion, and thus the creation of more divisions that cannot manage themselves sufficiently, and fierce competition the necessity to intensify coordination and demand to integrate is greater than ever. Areas in which achieving integration is of upmost importance, especially to a MNC such as Samsung due to what was a domestic domain has been contained into the international, are Marketing, R&D and Quality Assurance. Their continued success requires turning awayfrom what made them successful. The tightly integrated business systems that have worked in their home markets are unlikely to secure their future in global markets. To move to the next level, they, too, must reinvent themselves in ways that may seem contradictory. And when they reach new plateaus, they will need to do so again. (Khanna et al, 2011) Samsung has become a World leader in R&D, Marketing and Design (Khanna et al, 2011), although prior to 1996 the company was nowhere as close to where it is today as it hadn’t achieved integration due to a lack of investment into these areas (Kim, 1997). During the early 90s the...
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...February 9, 2012 BUSM 302 Operations Management Operations Strategy of Dell The main function of an operations strategy is to ensure that a plan is in place for the operations of the company so that is can as productive as possible with the use of available resources. These companies have to ensure that their operations plan is place and that it is functioning properly in order to achieve desired results within the market place. I am going to discuss the operations strategy of Dell. Dell is a computer company that has become a leader in the computer industry because of its speed of delivery and low price. This unique corporation has marketed thousands of computers online and continues to be an industry leader. Dell’s main delivery channel is the internet, and they have developed their business around that channel. Dell’s mission is “to be the most successful computer company in the world at delivering the best customer experience in markets we serve.” Dell works to meet customer expectations in competitive pricing, quality, leading technology, accountability, best-in-class service, flexible manufacturing, etc. Dell found that many of their competitors were marketing their products through other sellers. This meant higher overhead costs and slower turnaround times. Dell seen this as an opportunity to fill a gap in the market place. This is all combined within their business strategy. With their business strategy now designed , they set up a way that customers...
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...Date Operations Strategy Operations strategy is a plan that is used to specify how an organization will assign resources to support production and infrastructure development in an organization (Lewis, 3). Operation strategy is driven by the total business strategy of the enterprise and is designed to utilize the maximum effectiveness of manufacture and support elements in a mission of minimizing costs. Many companies have been facing collapse due to different reasons that range from internal to external factors. For example, in the case of Commodore Computers organizations, the primary factor that led to its failure was that the management did not understand the environment and they were not result oriented. When management fails to focus on their organizational environment and not resulted in the orient, all the processes in the organization failures lead toward total business failure (Allon and Mieghem, 3). Also, in the organization many staffs were not totally committed to their different functions that resulted in a reduced production that also contributed to organization’s failure. Company has also experienced the problem of having uneducated people about the inside job where many workers involved were given jobs through corruption that resulted in having wrong persons in management. The company also experienced the problem of adopting a change in their organization since many people unwilling to change or inability to change since they belief on the current operation strategy...
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...Pugh and Bourgeois III (2011) define the strategy as a constantly continuous process of assessment of organizational strengths and capabilities, diagnostics of weaknesses and finding solutions for their elimination, learning its internal and external environments and evaluating ways to support and improve successful business. A quality strategy arises from quality business analysis and highly concerned with learning, discovering and invention processes. According to Williamson et al. (2004) major concern of business analysis is to provide an insight to the current position of the company, options available and best possible directions open for it, and how identified goals can be achieved. From this module we have learned that business analysis has a direct relation to identification of business strategy and plays a crucial role in it. Through this module we have learned how to use different analytical tools to assess a business and evaluate possible strategic directions for future. The primary role of the analyst is identification of tools from the huge available amount, applicable to exact company, situation and environment with further proper interpretation of data analysis results. As an instance, Williamson et al. (2004, p.64) citing Pascale (1996) provide the case when “Pascale’s analysis of Honda’s entry into US market gave a completely different interpretation of events than did the BCG working with rational planning/positional perspective”. Based on the knowledge obtained...
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...WORKSHOP 3 TASK 1 Bob Limited Income Statement for the year ended 30 June 2009 | | |£ | | | | | |Sales | |100 | |Cost of sales | |(40) | |Gross profit | |60 | |Operating expenses | |(35) | |Operating Profit | |25 | |Interest payable | |(5) | |Profit before taxation | |20 | |Taxation | ...
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...MKT420 HW1 Article Summary Omar Salim AL-Ghamdi 201182370 The article: Why Customer Satisfaction Still Matters How attitudes, opinions and beliefs come together to form the basis for brand loyalty Perhaps the most disruptive of ideas to hit the market research community in the past several years has been the notion of ditching the long relied upon “customer satisfaction” model that researchers have leaned so heavily upon for years. A wave of recent methodological research has suggested that our five-point, Likert-scaled question “How satisfied were you with your experience?” no longer cuts it. It just doesn’t do an adequate job of predicting future customer spend. This attack has principally been led by proponents of the Net Promoter Score (NPS) method, which argues that it’s not satisfaction that matters, but rather, loyalty. According to studies by NPS architect Satmetrix, utilizing the assigned loyalty metric of how likely a customer is to recommend a brand or product produces predictive models that do a significantly stronger job of forecasting future brand spend than simply asking how satisfied customers were with their experience. As they rightfully argue, plenty of customers will leave a store completely satisfied with their experience, yet remain entirely unlikely to return based upon an abundance of variables that satisfaction models can’t account for. This results in retailers and service providers who sit befuddled in conference rooms across...
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...TEAM CASE 1: OPERATION STRATEGY AT GALANZ 1. What were the order winners/qualifiers for Galanz in the microwave oven business during the early stage of its development? Order winners are "those competitive characteristics that cause a firm's customers to choose that firm's goods and services over those of its competitors. Order winners can be considered to be competitive advantages for the firm” (APICS Dictionary, 2008). Order qualifiers are "those competitive characteristics that a firm must exhibit to be a viable competitor in the marketplace" (APICS Dictionary, 2008). In the case of Galanz, the large production scale and cost-leadership strategy are considered to be the order winners for the company; the qualified products with affordable price are the order qualifiers. This classification of winner and order qualifiers is on the basis of development that had been done in the company during the early stage of development. During the early stage, due to lack of technology and technicians at the home market, the company “did not have any competitive edge in production technology but only an abundant supply of cheap labor and land. Offering a low price thus was the only way to compete in the market” (4). To deal with winning orders, the company previously implemented the low-price strategy that was based on selling products at low cost in comparison with the competitors. As a result, the company had successfully achieved cost reduction that led them to achieve the large...
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...adopted a strategy which based on sport in the brand building. The firm acknowledges the basic role which is played by sports and by the Olympic Games as a promoter of its brand. Its management states that its strategy of sports sponsoring which fits well within their operations at Samsung is an integral part of the company’s philosophy. As they enter into the top plans propels the sponsorship of Samsung to a new era. It has been given an opportunity of acting on the same stage with the top brands of the world like IBM, Coca cola and visa which have enhanced their brand name considerably. Samsung would wish to accomplish two goals with the effort of sponsorship. Firstly it would be the building of brand awareness to especially create higher level of awareness than its rivals. The effectiveness of Samsung sponsoring was portrayed in 2004 in Athens Olympic Games which had a positive impact on the awareness of the brand. The second goal is the enhancement of the global imagery and attitudes towards its brand. Samsung considered its commitment to the Olympic movement as a key element in positioning and strategy. It makes contribution to Olympic Games success and at the same time enhances the brand image of Samsung and its market position. Samsung integrated successfully its product strategy, technology strategy and branding technology into the TOP plan. The top plan provides Samsung with a road by which it will become a top brand in the globe. Without the supporting strategies the top...
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