Business Operations

MONDAY WEEK 2 TOPIC: OPERATIONS MANAGEMENT STRATEGIES

Strategic = “long term decision making” 2-10 years

( location of manufacturing plants/warehouses/transportation companies/ 3rd party logistics partners

( tactical planning horizon = normally 1 year, 1.5 years

( operational = weekly as tactical too

Marketing and Operational areas are the most significant as one = demands and other = sales

1 ( Marketing may influence competitiveness through

I.D customer needs/wants

( effective advertising, pricing, promotion

2 (Operations influence competition through

integrated product and service design

cost minimization

quality

quick response

enhanced flexibility

inventory management

effective supply chain management

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Way to implement vision = mission statement

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*Those qualities of p/s that are valued by customers (qualifiers)

Qualifiers: the characteristics of the product/service that qualify it to be considered for purchase by the customer

Order winners: the final factor in the purchasing decision

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* cost and speed = “agility”

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postponement: combination of speed and flexibility, delaying the qualifier at the very last minute before sale

Made to start

Made to order

time to market is the largest advantage

also, customisation and flexibility

Factorial = any 10 parts * 9 * 8 * 7 * 6 *5 * 4 * 3 * 2 * 1

is the total number of variations

aggregate demand/ demand aggregation: e.g. customer in SA, NSW, VIC, and supplier is in VIC supplying for all southern states, averages remain similar (“zoning”) , accuracy of demand is a lot higher

Transportation aggregation is similar concept

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( Vision mission strategies are used to measure strategy at initial stage

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Core competencies must be qualities which cannot be easily imitated by competitors

WHY SOME ORGANISATIONS FAIL

1. Failure to I.D. dynamics of...