Operations Strategy

What is Operation Strategy?

What is Operation Strategy?

The importance of operation strategy can be demonstrated through an organizations ability to visualize competitive threats, need to increase productivity, see a problem through the entire manufacturing process and workforce (Drohomeretski, Gouvea da Costa, Pinheiro de Lima, & Garbuio, (2014) p. 805). Having an operation strategy determines the business strategy to be implemented or the source of a competitive advantage. It’s the pattern of strategic decisions and actions which set the role, objectives, and activities of operations (Slack, 2004, p. 67). According to Slack (2004), there are There are two issues that are related to operations strategy, which are operation strategy process and content, but what about the cost of poor quality? Here is a quick look at cost of poor quality (COPQ).

Cost of Poor Quality (COPQ).

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According to de Mast (2006), there are a few ways to position strategy; improve operation efficiency, continual improvement and lowering costs related to poor quality (p. 455).

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The COPQ has four categories, which are internal failure costs, external failure costs, appraisal costs, and prevention costs (Duffy, 2013, p. 63). Prevention costs are incurred to prevent quality problems, which can include quality planning, quality assurance, and training. Appraisal costs are related to measuring and monitoring activities related to quality, which can include verification, quality audits and supplier ratings. Internal failure costs are issues discovered before delivery of product or service to the customer. External failure costs are defects discovered by customers. The cost of doing a quality work, conducting quality improvement, and achieving goals are to be managed carefully to ensure the long-term effect on the organization is desirable. Operation Performance Objectives...