Needs for trade- offs - business strategy, Operation Management

Assignment Help:

Needs for Trade- offs - Business Strategy

In recent years another reason for questioning the need for trade-offs has arisen. In manufacturing industries great efforts have been expended in developing process technologies, and in particular the application of computers, to create production systems capable of mass customisation. Unlike a mass production system, which produces a standard product at low cost, a mass customisation system would produce 'specials' (traditionally the province of the high-cost job shop) at similar low cost. Such a system has been developed by Levi Strauss, the jeans manufacturer, allowing customers to have their jeans made to measure.

The customer's sizes are sent electronically to the factory, where a computer-driven production system automatically produces the jeans to the specified sizes. A few days later the customer may collect the jeans. Impressive though such technology may be, it raises issues. What then to measure? Ideally, the measures chosen will relate directly to the business qualifiers and order winners. However, care is required in the choice of operations performance measures; the order winners themselves may be inappropriate. For example, consider a business which has identified low price as the prime order winner. Price is an external (market) variable, which may rise or fall for reasons other than operational performance eg in response to competitors' pricing, sales promotions, seasonal price variations, etc. It would be unreasonable to measure the week-to-week performance of operations personnel on the basis of such a variable, which can change substantially for reasons outwith their control. What is needed is an internal (operational) variable, relevant to the order winner concerned: in the case of price it might be appropriate to measure unit cost, labour productivity or equipment utilisation.


Related Discussions:- Needs for trade- offs - business strategy

What area of human services do you find the most interesting, There are a w...

There are a wide variety of exciting and interactive professions in the field of human services. As demonstrated in the video below and through your reading, do you think that musi

Objectives of production and operation management, Objectives of Production...

Objectives of Production and Operation Management Production is an organized activity in a manufacturing organization. Each organized activity should spell out its objectives so

Explain values and customs of the local workforce, What is the key reason h...

What is the key reason host country nationals are hired to fill most foreign positions? Answer (1) They can more easily understand the values and customs of the local workforce. (2

Explain the first step in the process is idle, A bottleneck is an operation...

A bottleneck is an operation that has the lowest effective capacity of any operation in the process. TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement i

Explain administrative issues, Unit IV: At the Bargaining Table Unit V: Gri...

Unit IV: At the Bargaining Table Unit V: Grievances and Arbitration Unit VI: Wage Issues and Economic Supplements Unit VII: Institutional Issues Unit VIII: Administrative Issues

Elements of production control, Elements of Production Control 1.Contro...

Elements of Production Control 1.Control of the Planning: Assure receipt of latest forecast data from sales and production planning bill of material data from product engineer

Explain processes losses be avoided, What are some processes losses that ar...

What are some processes losses that are likely to occur in teams such as those at ICU Medical Inc? How can these processes losses be avoided?

Explain perspective of the target audience for webcams, What is your perspe...

What is your perspective of the target audience for webcams?

Explain multinational business and the role of corruption, I am brainstormi...

I am brainstorming ideas and topics for possible use to launch my dissertation for my PhD in management. My current topic under consideration is: Multinational business and the rol

Explain guidelines on discrimination national origin, 2. Inez Garcia was bo...

2. Inez Garcia was born in Portland, Oregon. Her mother is from Italy and Jewish. Her father is Mexican. Under the Guidelines on Discrimination Because of Religion or National Orig

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd