Operation Strategy

In the book, Operation Strategy, several key components that are relative to managing operation tasks, procedures’, and economic standing were presented. Chapter 1: Operations Strategy highlights the development of vital resources and strategies that play a significant role in organizational success. The four V’s(volume, variety, variation, and visibility) contribute to organizational sustainability and product development geared towards increasing earnings. Chapter 2: Operations Performance, showcases five objectives that can be implemented in corporate and business level strategies. These objectives include quality, speed, dependability, flexibility, and costs performances. Chapter 3: Substitute for Strategies: focuses on the variation tools and tactics that organizations can adopt and use in their corporate and business level strategies. Six Sigma is a well-known method used to identify potential issues within the organization. Chapter 4: Capacity Strategy consists of various levels of decision making and thinking that align performance with organizational expectancies and customer needs. The capacity of an organization is crucial to It’s productivity, success, and growth. For this reason, a detailed strategy should be composed to adequately manage all components of the organization. Chapter 5: Purchasing and Supply Strategy analyzes the existing and potential business relationships between customers, vendors, and organizations that supply goods and services; or make purchases.

The purchasing and supply strategy can also play a substantial role in the operation of an organization because it presents the impact that buyer and purchaser relationship has on organizational effectiveness. Chapter 6: Process Technology Strategy is an indicator .of how technology can be a key factor in establishing organizational niches and competitive advantage by incorporating unique and irreplaceable organizational features, products and services. Chapter 7: Improvement. The strategy is incorporated research and information from organizations’ competitors that will be the catalyst to creating unique and diversified products and services. In other words, strategies that will improve the current operations and strategies to aim at improved organizational outcomes.
Chapter 1
The four V’s in strategic operations are volume, variety, variation, and visibility. The aforementioned dimensions of strategic management are significant because they illustrate the methods and techniques that are imperative to product development and sustainability. Volume is an indicator of the frequency of the product output which highlights the “high degree of specialization both feasible and economic”(Slack and Lewis, 2015, 4). Variety showcases the uniqueness of the products that are being offered by an organization(Felipe et al., 2010, 208).In strategic operations, product variety attracts consumers with the products that are offered and may increase the output volume based on economic earnings, and sales. Variation illustrates the level of demand, usage, and frequency of the product(Jia, 2013, 112). An example of low variation is a product that is frequently used and stable. Lastly, visibility levels are related to the type of manufacturing process that a product or products embarks on. For instance, a product that has a standard process will have a lower visibility that a more intricate process.
Chapter 2
Developing a corporate strategy is accompanied by organizational performance objectives that are designed for and designated to the company’s stakeholders. The five objectives include the quality, speed, dependability, flexibility, and costs performances. The quality performance objective relates to the conformity and the degree level of performance of a product(Nordmeyer, 2016). Both are equally significant and impactful on aiming to meet the needs of customers. The speed performance highlights the overall time that it takes in a product’s operation process from beginning to the end(Slack and Lewis, 2015). The time that it takes to manufacture and deliver a product to customers can have a direct impact on customer satisfaction. The third type of performance is dependability. Dependability is relative and overlaps with time, customer satisfaction and reliability because products that are ordered are received by customers in the time frame promised by the organization. Flexibility performance has various meanings in strategic operations. It can be the creation and offering of diverse products to customers, and flexible thinking in order to expand marketing options(Musibau, Oluyinka, and Long, 2011, 392). Lastly, costs performance is the capital and operating expenditures, and working capital. Each of the aforementioned components relates to the input of capital into the organization to produce products.
Chapter 3
The Six Sigma is a process of quality management that reduces the quality problems in an organization. Six Sigma is a data driven method that is designed to identify issues within organizations that present issues in quality and productivity(Fusule, Bansod, and Fusule, 2012) This method is applied by determining the standard deviation and creating solutions that fall in a range within six of the standard deviation total quality. The Six Sigma encompasses statistical and business principles designed to improve quality and performance. The fundamental principle of six Sigma is to ‘take an organization to an improved level of Sigma capability through the rigorous application of statistical tools and techniques.’ It generally applies to problems common to production” (Hekmatpanah et al., 2008, 731). Six Sigma can be a key tool in deciphering and solving organizational problems. It is imperative that managers educate themselves on six Sigma to appropriately apply them to their organizational issues and to also enhance performance.
Chapter 4
Capacity strategies consist of various levels of decision making and thinking that align performance with organizational expectancies and customer needs. Manufacturing and productivity are the two main goals in the development of activities that impact the organization in an efficient and effective manner. Dekkers and Kanapathy (2012) defined capacity strategy as “(production) technology, outsourcing and organizational structures (incl. skills of employees) as well as other factors than cost (e.g. lead-time, logistics and quality)”(577). Collectively, capacity strategies include internal and external contributions to the organizational success and or failure. In capacity building strategy forecasting, constraints, alternatives, and evaluations are key components to an effective strategy(Markgraf, 2016). Forecasting is determining the areas in an organization that has a high demand. This can include products, employees, etc.(Lunenberg, 2012). Constraints are areas that pose the greatest challenges in performance and productivity. Constraints can be within or outside of the scope of the organization’s control. Alternatives are diverse methods that can be used in the capacity strategy. Evaluation is performed on a quarterly or annual basis to determine if the capacity strategy is effective.
Chapter 5
Purchasing and supply chain strategies are designed to provide excellent customer service to consumers while concurrently establishing business relationships with vendors and organizations that supply goods and services that are requested by a given organization. The interactions that transpire between buyers and suppliers can serve as a detrimental in elevating organizational success or failure. For this reason and much more, it is significant for organizations to form relationships with their suppliers whose ultimate goal is improving productivity. Three levels of strategies that have been identified as having a grand impact on purchase and supply strategies are corporate, business, and functional(Nollet, Ponce and Campbell, 2005). Corporate and business level strategies emphasize formal systems; whereas functional strategies illustrate the methods that are used when completing tasks. Storage, supply and demand, etc. are other notions that are relative to the purchasing and supply strategy that need to be considered when formulating a plan(Coban, 2012, 59). The aforementioned are significance because they determine the costs and capabilities associated with structural performance and productivity.
Chapter 6
Process technology includes the direct and indirect technology strategies that are used in strategic operations. Direct technology may include databases that are internally accessible by organizations. An example of a direct process technology strategy is registration and flight systems that are used for airline companies. Technology role in strategic operations can be the catalyst for an organization to develop a niche and a competitive advantage over its competitors. A close-knit technological process can be the guidelines for developing a challenging path to diversification for other organizations(Schroeder, Congden, and Gopinath, 1995). Indirect process technologies are the causes and factors that can have a direct impact on strategic operations. An example of this is related to technological changes in databases or the methods used by suppliers
Chapter 7
Strategic implementation is a key component to task creation and task assignments. Predecessors of strategic implementation are SWOT analysis and PESTLE analysis(Loretta, 2016). SWOT analysis is significant because it gives constructions the opportunity to analyze It’s strengths, weaknesses, opportunities, and threats(Helms and Nixon, 2010, 215). By evaluating all of the aforementioned factors, organization’s are capable of developing an implementation strategy that can reduce organizational challenges and accept adaptation. The PESTLE analysis is also a significant contributor to strategic implementation because it provides the organization’s with vital information by conducting an environmental scan. An environmental scan provides organizations with political, economic, social, technological, legal, and environmental factors about their competitors that allow them to use this information to create more effective strategies(Gupta, 2013, 35). Strategic implementation strategies use a vast array of information to create organizational strategies that will improve organizations ability to compete with others.
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