MSG Team's other articles

12758 The Why and How of Cities Worldwide Competing in a Race to Attract Investments

The Global Race Between Cities for Investments Cities worldwide are in a global race for investments and this is being driven by economic, political, demographic, and social reasons. Considering the fact that the future of the world would be urban and cities would be the engines of the global economy, it is not surprising that […]

11293 Characteristics of Six Sigma

Six Sigma is a well-known management breakthrough. There is a dearth of experts who have defined the process in their own way and have come up with a long list of characteristics. However, according to us this performs a task of confusing people rather than actually giving them insight into the way Six Sigma actually […]

8906 Designing a Decision Support System User Interface

The effectiveness of a computerized system or a software platform depends on its user interface design. Be it a routine software program or a high-end decision support system, user’s interaction with the system should be as simple, effective and hassle-free as possible. It’s not a mystery that great decision support systems have brilliant user interface […]

8707 Disaster Recovery and Business Continuity Plan

Modern day world is extremely complex and interwoven with a lot of variables and uncertainties. Managing businesses is extremely tricky and requires one to be ahead of times all the while. With the evolution of technology, the business processes and management philosophies on how to nurture and safeguard one’s business have been the subject of […]

11977 Why Growth is Stalling around the World?

Why is Growth Stagnant? We read in the print and online media about why governments worldwide are unable to revive growth especially since the Great Recession of 2008. We also read how policymakers are trying their best to jumpstart growth but are being unable to do so. Moreover, we see stock markets going up while […]

Search with tags

  • No tags available.

Introduction

It is very important for an organization to have well defined objective. A well-defined objective facilitates development of strategies and policy thereby creating value for customers.

Operation Strategy

Operational strategy is essential to achieve operational goals set by organization in alignment with overall objective of the company. Operational strategy is design to achieve business effectiveness or competitive advantage.

Operational strategy is planning process which aligns the following:

Operational Strategy

In this global competitive age organization goal tend to change from time to time therefore operations strategy as a consequence has also be dynamic in nature. A regular SWOT analysis ensures that the organization is able to maintain competitive advantage and business leadership.

Strategic Management Process for Production and Operation

For success of organizational strategic objective, strategic planning has to trickle down to various function areas of the business. In order to build strategy management process a sequential process as below is followed

Competition Analysis: In this step company evaluates and studies current competition in the market and practices that are followed in the industry for operations and production vis-a-vis company policies

Goal Setting: Next step involves narrowing down the objective towards which the organization wants to move towards.

Strategy Formulation: The next step is breaking down of organizational goals into operations and production strategies.

Implementation: The final step is to convert operations and production strategies into day to day activities like production schedule, product design, quality management etc.

As organizations are always customer-centric, production and operation strategy for organization are built around them

Productivity

Measurement of formulated operations and production strategy is important to maintain alignment with the organization objectives. In simple terms productivity is defined as sum of total output per employee or per day. Productivity of company is dependent on industry and environmental conditions in which it is operating.

Two essential part of productivity are labor and capital. In scenario of limited resources, optimum and efficient utilization of labor and capital will generate favorable productivity. Productivity measurement also enables company to identify areas which require improvement or special focus. Also productivity provides ready report card to measure status against company’s production objective.

Productivity measurement can be classified in three categories based on the inputs used for calculation. Partial productivity ration of output is compared to one of resource used for example, labor productivity where output is compared to the labor wages.

Total productivity measure takes into consideration sum of all input factors which are used for the output.

In the modern age technology plays an important part in productivity.

Wastivity

Another important factor is the case of production is wastivity. Not 100% of input would be converted to output, there is going to waste during production.

Wastivity is reciprocal of productivity. Classic examples of wastivity are defective products and services which either have to be re-cycle or disposed of completely. Other example is idle capacity of material, man-power equipment etc.

Article Written by

MSG Team

An insightful writer passionate about sharing expertise, trends, and tips, dedicated to inspiring and informing readers through engaging and thoughtful content.

Leave a reply

Your email address will not be published. Required fields are marked *

Related Articles

Capacity Planning – Meaning, Classification and its Goals

MSG Team

What is Aggregate Planning? – Importance and its Strategies

MSG Team

Operational Transparency

MSG Team