Describe how operations strategy is developed What are compe

Describe how operations strategy is developed.

What are competitive priorities and how is it related to operations strategy?

What are “make to stock strategy”, “assemble to order strategy”, and “make to order strategy”? Examples of how one operation went from one strategy to another?

Product design and process selection; should they be different for different countries? How should they be different for U.S., Mexico, and China?

How is service operation different from manufacturing operation?

Solution

Following is the procedure to develop operations strategy:

Defining the objective: The corporate defines the goals it wants to achieve through implementation of a strategy. These goals should be specific and clearly defined. For example, low costs of manufacturing, efficient supply chain, better inventory management, improved process etc.

Determining the key parameters influencing operations strategy: The next step is to identify the resources and knowledge required to develop a strategic plan. This includes collecting relevant data about competitors and company itself. This step involves internal and external assessment of factors influencing company’s operations.

Structuring the plan: This includes determining the position of each task which needs to be performed for deciding the actual plan. For example, the transportation design, inventory management, location of warehouses etc. comes under supply chain part of operations strategy. While improving the manufacturing involves scheduling part of operations strategy.

Developing process for determining the strategy: This involves analyzing the current process and choosing the alternate methods of performing the tasks. This also include designing whole new processes such that maximum performance is obtained. For example desigining new manufacturing process and quality checking standards to ensure high quality of products.

Choosing the right strategy: All the options available should be tested for predetermined standards and objectives to check their feasibility and effectiveness. The strategy with least cost and maximum return should then be opted. These predetermined standards for example include time and cost of supply chain, quality of products etc.

Managing and implementing the strategy: Once the strategy is developed it must be managed and implemented properly for achieving desire results. The strategy must be adopted at higher corporate levels and lower levels.

Evaluation of strategy: The strategy once implemented must be reviewed and evaluated based on desired goals. The modifications could further help to enhance the operational capabilities.