StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Service, Services and Products: Rethinking Operations Strategy - Admission/Application Essay Example

Cite this document
Summary
Rethinking Operations Strategy Introduction Operations management is an important area of management that deals with forecasting, designing, and redesigning business activities in the production of goods and services. This management sector assists the organization to ensure efficient and economic utilization of resources and effective meeting of customer requirements…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98.1% of users find it useful
Service, Services and Products: Rethinking Operations Strategy
Read Text Preview

Extract of sample "Service, Services and Products: Rethinking Operations Strategy"

Rethinking Operations Strategy Introduction Operations management is an important area of management that deals with forecasting, designing, and redesigning business activities in the production of goods and services. This management sector assists the organization to ensure efficient and economic utilization of resources and effective meeting of customer requirements. The operations management has two levels including strategic as well as tactical perspectives. The strategic perspective deals with the design of the system and it is driven by strategy and competitiveness, process selection, and capacity creation.

This paper analyzes how the design process is effective and efficient from an operational management perspective. Design of the system Strategy and competitiveness are the most significant components of any system design as they play a remarkable role in determining the efficacy of operations management. Chase, Jacobs, Aquilano, and Agarwal (2006, p. 24) state that the term strategy can be referred to a tool that provides organizations with a plan that makes best use of resources. It also advises management with specified policies and plans for using organizational resources.

According to Spring and Araujo (2009), operational efficiency indicates the performance of various tasks better than competitors while operational strategy is a plan for competing in the market place. Generally companies do not establish specific standards to distinguish between operational efficiency and strategy. Operational efficiency indicates the performance of various tasks better than competitors while operational strategy is a plan for competing in the market place. Hence, operational strategy and competitiveness are two interrelated concepts by which the former ensures that all performed tasks were effective and thereby attains the later.

For the effective establishment of operational strategy and competitiveness, it is necessary to consider structural as well as infrastructural elements. The structural elements include facilities, flow of goods, and technology whereas planning and control system, workers, pay, and quality constitute infrastructural components. While dealing with operations strategy, the management must specifically determine the competitive priorities in order to meet the framed long range business plan. As Spring and Araujo (2009) opine, while dealing with operations strategy, the management must specifically determine the competitive priorities in order to meet the framed long range business plan.

According to Reid and Sanders (2010), the competitive priorities usually include cost, quality, time, and flexibility. Competing on cost means that offering a product at a lower price relative to the intensity of market competition. In order to compete on quality, the organizational management must take into account major quality dimensions including high performance design and product and service consistency. Similarly, time is one of the most important competition priorities and time related components involve rapid delivery and on-time delivery.

Finally, competing on flexibility represents rapid environmental changes of the company and this practice is mainly concerned with product flexibility and volume flexibility (slide 12-16). In total, operational strategy along with competitive priorities contribute to the effective system design of the operations management. Similarly, process selection and capacity planning are two essential components of system design and these concepts are interconnected. “Process selection is concerned with the development of the process necessary to produce the designed product” (Reid and Sanders, 2010).

For the effective management of process selection and capacity creation, a number of input factors including forecasting, product and service design, and technological change are required. These two processes are capable of generating outcomes such as facilities and equipment, layout, and work design. While managing process selection, the management has to consider the variety in products or services which the system needs to be handled, the required level of equipment flexibility, and expected volume of output.

The process selection is a complicated task as processes are of different types such as project process, batch process, line process, and continuous process. The management deals with the process selection by focusing on specific considerations. In the opinion of Reid and Sanders (2010), intermittent processes and repetitive process are the crucial parts of process selection. Intermittent processes are mainly intended for the production of a variety of products in lower volumes with varying processing requirements while production of one or few standardized products in high volume is the major purpose of repetitive processes.

In short, the process selection will add value to the effectiveness of the system design if it is carried out in a systematic and thoughtful manner. According to Oblitas and Peter (1999, p. 118), capacity creation or capacity development process can also have a great influence on the efficacy of system design. The capacity creation can be carried out through different steps ranging from assessment of capacity assets and needs to monitoring and evaluation of capacity development strategies. Effective capacity creation is very crucial to any organization as this element plays a significant role in planning business expansion.

Hence, most business houses have formulated specific policies to effectively manage the capacity creation process. Conclusion Form the above discussion, it is clear that strategic design process is an important element of operations management and it mainly includes different components like strategy and competitiveness, process selection, and capacity creation. The efficacy and efficiency of design process may depend upon the planning and implementation of various driven factors of system design.

References Chase, R., Jacobs, F. R., Aquilano, N. J & Agarwal, N. K. (2006). Operations management for competitive advantage. Tata McGraw-Hill Education. Oblitas, K & Peter, R. (1999). Transferring irrigation management to farmers in Andhra Pradesh, India, Volumes 23-449. World Bank Publications. Reid, D & Sanders, N. R. (2010). Operations Management: An integrated approach. 4th Edition, Wiley & Sons. Spring, M & Araujo, L. (2009). “Service, services, and products: Rethinking operations strategy”.

International Journal of Operations & Production Management. 29 (5). 444-467.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Service, Services and Products: Rethinking Operations Strategy Admission/Application Essay”, n.d.)
Service, Services and Products: Rethinking Operations Strategy Admission/Application Essay. Retrieved from https://studentshare.org/business/1432082-service-services-and-products-rethinking
(Service, Services and Products: Rethinking Operations Strategy Admission/Application Essay)
Service, Services and Products: Rethinking Operations Strategy Admission/Application Essay. https://studentshare.org/business/1432082-service-services-and-products-rethinking.
“Service, Services and Products: Rethinking Operations Strategy Admission/Application Essay”, n.d. https://studentshare.org/business/1432082-service-services-and-products-rethinking.
  • Cited: 0 times

CHECK THESE SAMPLES OF Service, Services and Products: Rethinking Operations Strategy

How Service Operations are Different from Manufacturing Operations

The paper "How Service operations are Different from Manufacturing operations" discusses that the systems theory facilitates the regulation of operator activities, and this implies that businesses are capable of correcting their faults through the feedback obtained from the users.... hellip; The service operations can be said to be different from the manufacturing operations mainly because of the former deals in intangible products....
10 Pages (2500 words) Essay

The Olympic Organization: the Logistics and Transport Segment of the Olympics

In addition, the strategy that UPS uses when it comes to logistics especially during the Olympics is of core importance to this paper and the plan the UPS had for Olympics to help sort out the operational management issues.... Operational management can also be referred to as Operation strategy.... According to Jones and Robinson (2012), operation strategy is usually a plan for managing operations over the long term basis in order to achieve business goals and thus achieve a competitive advantage....
9 Pages (2250 words) Case Study

Marketing Problems and Issues of Cloon Keen Atelier

The company has also adopted their own line of body care products due to high differentiation strategy they employee in their products.... The company may as well use application or use strategy by manufacturing different products for different occasions and times such as romantic scented candles for lovebirds' gifts and cool scented products for summer seasons.... Another great strategy is connecting the products with the users such as classic scented products for the rich....
5 Pages (1250 words) Essay

Statistical Process Control for Controlling Service Quality

Statistical Process Control whilst primarily a manufacturing quality technique can be usefully applied in service industries Introduction- Research Background “The consumer compares his expectations with the service he perceives he has received, i.... he puts the perceived service against the expected service.... hellip; The result of this process will be the perceived quality of service” - (Gronroos, 1984, p....
10 Pages (2500 words) Essay

Strategic Operations Management Features

hellip; An operations strategy developed therefore will not strait -jacket operations and prevent it from responding to such changes and adapting itself to changing needs.... An operations strategy is never complete without an appropriate implementation plan.... or the operations strategy to be successful, it would need to be a collaborative effort.... Sadler (2000) says that a suitable planning process involving busy managers who are highly focussed on operations and a facilitator would greatly increase the chance of success of implementation of operations strategy....
9 Pages (2250 words) Essay

Introduction to Operational Management

The difference between operations strategy for bringing about an improvement in Going Inc's airline business and for enhancing the ability of Going Inc's aircraft manufacturing to take advantage of increased market demand is the difference between operational strategy for service and that for manufacturing (Lynch, 2006, Pp.... Most of the published research in the area of operations strategy relates to product manufacturing strategy.... Services present significant differences from manufactured products and five main differences between service offerings and products have been identified as follows (Lynch, 2006,...
4 Pages (1000 words) Essay

The Product Service System

This concept is of the essence in that the decisions made herein have monumental effects on the cost of production of a company, efficiency in… Product servitisation refers to the stratagem of value creation through the addition of services to products or rather, instilling a service in the place of a product.... They are also putting themselves in a better position to possess the ability to produce at extremely high standards as well as respond and maximize on all service propositions that arise from the usage of their products....
6 Pages (1500 words) Essay

Service Delivery System and Process Design - Tedallal's Experience

This is particularly true when the operational strategy is not aligned to it, as demonstrated by Tedallal's experience.... This is a report on this new strategy as well as analysis of its efficacy as implemented by the organization.... Unfortunately, Tedallal is still experiencing difficulty primarily because its strategy is not aligned with the organizational objectives.... This came about through several factors, including a comprehensive offering of customer values that taxed the organizational capability and resources; a half-baked strategy that failed to address the achievement and maintenance of quality in products and services; and, the failure to meet market demands....
20 Pages (5000 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us