1) Operations management and strategic planning involve determining long-term goals, policies, and plans at the corporate, business, and functional levels to gain a competitive advantage.
2) An operations strategy defines how organizational goals will be achieved through decisions across the value chain, while an operational plan outlines tasks to achieve strategic goals through setting budgets, communication, and review.
3) Key elements of an operations strategy include production systems, facilities, products/services, technology, and resources to transform inputs into outputs that meet customer needs effectively and efficiently.
1) Operations management and strategic planning involve determining long-term goals, policies, and plans at the corporate, business, and functional levels to gain a competitive advantage.
2) An operations strategy defines how organizational goals will be achieved through decisions across the value chain, while an operational plan outlines tasks to achieve strategic goals through setting budgets, communication, and review.
3) Key elements of an operations strategy include production systems, facilities, products/services, technology, and resources to transform inputs into outputs that meet customer needs effectively and efficiently.
1) Operations management and strategic planning involve determining long-term goals, policies, and plans at the corporate, business, and functional levels to gain a competitive advantage.
2) An operations strategy defines how organizational goals will be achieved through decisions across the value chain, while an operational plan outlines tasks to achieve strategic goals through setting budgets, communication, and review.
3) Key elements of an operations strategy include production systems, facilities, products/services, technology, and resources to transform inputs into outputs that meet customer needs effectively and efficiently.
1) Operations management and strategic planning involve determining long-term goals, policies, and plans at the corporate, business, and functional levels to gain a competitive advantage.
2) An operations strategy defines how organizational goals will be achieved through decisions across the value chain, while an operational plan outlines tasks to achieve strategic goals through setting budgets, communication, and review.
3) Key elements of an operations strategy include production systems, facilities, products/services, technology, and resources to transform inputs into outputs that meet customer needs effectively and efficiently.
Strategy – a pattern or plan that integrates an organization’s major goal, policies and action into a cohesive whole.
- The approach by which the organizations seeks to develop the capabilities required for achieving its competitive advantage.
Strategic Planning
- The process of determining a long-term goal, policies and plans for an organization.
LEVELS OF STRATEGY
1. CORPORATE-LEVEL (PORTFOLIO) At the highest level, corporate strategy involves high-level
strategic decisions that will help a company sustain a competitive advantage and remain profitable in the foreseeable future.
2. BUSINESS-LEVEL At the median level of strategy are business-level decisions. The business-level strategy focuses on market position to help the company gain a competitive advantage in its own industry or other industries.
3. FUNCTIONAL-LEVEL At the lowest level are functional-level decisions. They focus on activities within and between different functions, aimed at improving the efficiency of the overall business. These strategies are focused on functions and groups. (Marketing, Finance, Operations, RND etc.)
OPERATIONS STRATEGY - The set of decisions across the value chain that supports the implementation of higher- level business strategies. It defines how an organization will execute its chosen business strategies. - is a functional strategy that should be guided by the business strategy and should result in a consistent pattern in decisions.
FRAMEWORK FOR OM
1. Operations Design Choices – are decisions management must make as to what type of process structure is best suited to produce goods or create services. 2. Infrastructure – focuses on the non process features and capabilities of the organization and include the workforce, operating plans, and control systems, quality control, organizational structure, compensation systems, learning and innovation systems and support services.
TYPES OF OPERATION STRATEGIES
1. Corporate Strategy: Overall company strategy, driving the company mission and interconnected departments. 2. Customer-Driven: Operational strategies to meet the needs of a targeted customer segment. 3. Core Competencies: Strategies to develop the company’s key strengths and resources. 4. Competitive Priorities: Strategies that differentiate the company in the market to better provide a desired product or service. 5. Product or Service Development: Strategies in product design, value, and innovation BSA 2 CBME 1: Operations Management and TQM
Creating an Operational Plan
1. Know Your Operational Strategy
To begin, you need an operational strategy, which is more concerned with long-term goals than an operational plan that outlines the tasks that’ll help you to achieve those goals.
2. Set Goals and Objectives
The operational plan will ideally achieve the goals and objectives of your operational strategy.
3. Make a Budget The budget funds the operational plan and allows managers to know what’s viable and what’s out of scope for the project.
4. Use Leading Indicators
By using leading indicators and predictive measurements, managers can forecast the outcomes of their operational plan. That informs the tasks and activities of the team and adds to the likelihood that they achieve favorable outcomes.
5. Communicate with the Team
Regular team meetings aid in the development of the operational plan.
6. Use Reporting Tools
To make sure you’re keeping to the operational plan and that your team is accountable, you need reporting tools to track progress and performance. BSA 2 CBME 1: Operations Management and TQM
7. Keep Documentation Document every step of your operational plan to track progress and measure improvements over time.
8. Review and Revise
The operational plan should be flexible. There will be challenges and changes over the course of its execution, so don’t look at the operational plan as written in stone. When there are changes, be sure to have regular meetings with your team to keep them updated.
Operational Planning vs. Strategic Planning
STRATEGIC PLANNING OPERATIONAL PLANNING
A strategic plan outlines the necessary steps Operational plans are about the short-term for an organization to achieve its goals and objectives of the organization. objectives Strategic Planning is used to guide an Operational plans are about the short-term organization over a longer period of time objectives of the organization. The scope of a strategic plan is larger as it’s Operational planning has a more limited responding to the needs of the entire scope, dealing mostly with a specific organization department or team A strategic plan is usually under the purview Operational planning is led by mid-level of a top executive who’s dealing with the managers and addresses the needs of their larger organization teams.
5 Key Elements of an Operations Strategy
There are a few key elements that go into a company’s operations strategy.
1. Production system: An organization’s production system determines the short-term and long- term planning for how resources are turned into marketable products and services. A comprehensive production system includes clear workflows, quality control benchmarks, and supply chain management strategies.
2. Facilities: A company’s operational capabilities are influenced by the size and number of production facilities. To function properly, specific facilities require achievable production goals, clear safety procedures, and inventory management systems.
3. Product or service: One of the most important elements of any operations strategy is the quality management of a product or service. Businesses analyze the lifecycle of their products and services in order to predict market trends, adjust their product or service, and allocate resources to new service development and product development.
4. Technology: Operations strategy increasingly depends on new technological developments
like machine learning, production line automation, real-time metrics, and market forecasting tools.
5. Resources: A comprehensive overall strategy for operations takes into account the total operations resources available to an organization, including locational, mechanical, and human resources.
