Elements of operation strategy


Operations strategy comprises six components :

  1. Positioning 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- 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-It is designed to support production departments that perform a single task like painting or packing. These system are highly flexible and can easily be modified to support other product design.


2.      Focus of factories and service facilities
3.      Product/Service design and development.


4. Technology selection and process development,- Thorough analysis and planning of the production processes and facilities. Every step in the process of production is planned in detail. The technology to be used in the production process is selected from range of options
5, Allocation of resources to strategic alternatives- Production companies have to continuously deal with the problem of scarce resources like capital, machine and materials and so on. As these resource inputs are vital to production activities, their shortages can influence production performance significantly. Hence the operation manger have to plan the optimal use of resources, both in terms of minimizing wastage, and in terms of their allocation to the best strategic use.
6. Facility planning.
The location of the production facilities is one of the key decisions an operation manager has to make since it is critical to the competitiveness of the organization.
Setting up production facilities with adequate capacity involves massive initial investment.
Strategically right options should be carefully weighted against all available alternatives. These decisions also influence the future decisions on probable capacity expansions plans.
Operation managers also make decisions, i.e. decision on internal arrangement of workers and department within the facility

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