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Explain briefly elements of operations strategy? Ans. The six elements of operations strategy are:- 1. Designing of the production system 2. Facilities for production and services 3. Product or service design and development 4. Technology selection, development, and process development 5. Allocation of resources 6. Focus on facilities planning 1. Designing of the production system: - The designing of the production system involves the selection of the type of product design, processing system, inventory plan for finished goods, etc. The product design has two varieties. Customized product design Standard product design There are two types of production systems. They are product focused and process focused. Product-focused system is adopted where there is mass production by using a group of machines. For example, products like automobiles, computers, etc. 2. Facilities for production and services: - Certain specialization in production allows the firm to provide the customers with products of lower cost, faster delivery, on-time delivery, high product quality, and flexibility. 3. Product or Service design and development:- Generating the idea Creating the feasibility reports Designing the prototype and testing Preparing a production model Evaluating the economies of scale for production Testing the product in the market Obtaining feedback Creating the final design and starting the production 4. Technology selection and process development: - A product selected for production will be analyses for the process and the applicable technology for optimal production. There are many challenges faced by the operations managers in this decision as the alternatives are many. The techno-economic analysis for each alternative will help to decide the required technology.5. Allocation of resources: - The production units face continuous problems of allocating the scarce resources like capital, machines, equipment, materials, manpower, services, etc. Allocation at the right time to the right place of production indicates the efficiency of the production planners. Optimal use of resources will enable economical production. Minimizing waste, optimal utilization of resources, and the best quality product demand a sound operations strategy. 6. Facility, capacity, and layout planning: - The location, layout, and facilities creation for the production are the key decision areas for the operations manager. These are critical for achieving the competitiveness. The decision also influences the future expansion of the plant. While evaluating the alternatives, the operations manager will consider the availability of raw materials, access to market, etc. Enormous capital requirement is required and the planning is always long range. Here, the production process adopted and the technology pursued dictates the volume, quality, and cost of production
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Introduction To Operation Management
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History Of Operational
Management Production and Operation Management
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