Strategic Operations Management. Introduction to Operations Management. Design, Operation, and Improvement of the Systems that create and deliver Primary Product & Service combination.
Strategic Operations Management
Stimuli for greater variety,
various classifications of Flexibility and
measurement of Flexibility.
Flexibility in Operations Systems is as a response to the need fro Variety and its attendant Uncertainty.
Flexibility in OS -- is demand driven
Uncertainty --- a supply dilemma
work was divided into smallest possible components;
assign the tasks to specialists;
appoint managers to supervise and make decisions
workers to concentrate on manual tasks ;
variations reduced to a minimum;
all inputs and outputs standardized to reduce defects;
Five more types of flexibilities were added by experts :
“ In competitive terms, value is the amount buyers are willing to pay for what a firm provides them. Value is measured by total revenue, a reflection of the price a firm’s product commands and the units it can sell. A firm is profitable if the value it commands exceed the costs involved in creating the product. Creating value for buyers that exceeds the cost of doing so is the goal of any generic strategy.”
# Process versus Design
# market driven view versus the resource based view.
The design, operation, and improvement of internal and external systems and resources that create product & service combinations in any type of organization.
How to supply particular products & services;
What capabilities or competencies will be needed in the future;
what resources will be needed to acquire;
what work flows are necessary;
what processes and technologies will be required;
The capacity needed and the levels of flexibility required;
Human resources levels(skills, training, recruitment,
selection, and retention);
What facilities are needed
Types of suppliers, sourcing , outsourcing etc.;
Decisions about the general operating systems and the resources needed long-term to maintain them.
major decisions about ,and strategic management of :core competencies, capabilities and processes, technologies, resources and key tactical activities necessary in the function or chain of functions that create and deliver product and service combinations and the value demanded by a customer
major decisions about , and strategic management of : core competencies , capabilities and processes, technologies, resources, and key tactical activities necessary in any supply network, in order to create and deliver product and service combinations and the value demanded by the customer.
The strategic role also involves the blending of these various building blocks into one or more unique , organizational-specific, strategic architectures
4.It is a definition that can easily apply to all organizations producing product and service combinations no matter what the mix (tangible or intangible);and
5.It places clear emphasis upon the strategic importance of activities.
6.It combines both market- -driven and resource based views of startegy