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

North west corner rule, advantages and disadvantages of north west corner r...

advantages and disadvantages of north west corner rule

Explain the need for management to motivate their employees, Problem 1: ...

Problem 1: Team working is gaining importance in modern organisations. Do you agree that all members of an organisation could be expected to be team players? Discuss with exa

Explain job market which favours the employer, Broad Bands - How does this ...

Broad Bands - How does this concept work today in a period of high unemployment, low pay increases, and a job market which favours the employer?

What are the impact on the project parameters, Your team is working on the ...

Your team is working on the opportunity assessment when you are notified there will be room on the agenda of the senior executive monthly meeting for you to present your results. T

Productivity, discuss productivity in the service sector

discuss productivity in the service sector

Explain ennoblement in addition to the primary deliverable, Almost all proj...

Almost all project have deliverables dealing with documentation and customer ennoblement in addition to the primary deliverable

Explain free speech or false advertising, "Free Speech or False Advertising...

"Free Speech or False Advertising" Please respond to the following: •From the case study, determine if Nike engaged in commercial speech, or if its statements were political or soc

Explain bottleneck operation by adding a new machine, A small firm intends ...

A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified, and the associated costs and reven

Explain what is the average setup cot per year, Radovilsky Manufacturing Co...

Radovilsky Manufacturing Company, in Hayward. California. Makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders fo about 12,

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