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

Advantages and disadvantages of the parallel sourcing, What are the advanta...

What are the advantages and disadvantages of the parallel sourcing? Advantages of parallel sourcing: Best of both worlds for example, have your cake and eat this too for

Explain planning is the fundamental management function, 1. Planning is the...

1. Planning is the fundamental management function. Discuss how organizing and planning are related. 2. Using two examples, describe the different approaches used by companies/m

Explain buckroe beach virginia illegal, Buckroe Beach Virginia illegal put ...

Buckroe Beach Virginia illegal put what in someone's swimsuit

Explain purchasing and supply management, Briefly discuss each of the seven...

Briefly discuss each of the seven periods in the evolution of purchasing and supply management. What do you forecast for the future?

Explain improve matters and rectify the injustice, What could you or the pe...

What could you or the person who was treated unfairly have done to improve matters and rectify the injustice on the spot?

Explain organizational culture regarding staffing decisions, What is the re...

What is the relationship between the business strategy and an entity's organizational culture regarding staffing decisions? Is it possible to strengthen one without the other?

Explain the food stamp and fast foods, Case Study- Food Stamp and Fast Food...

Case Study- Food Stamp and Fast Foods 1. What is the the legal issues involved in the expansion of the SNAP program to the fast food business as well as to how these legal issue

Describe the key success factors, Select an industry or a company of your ...

Select an industry or a company of your choice. Using figure 4.3 on page 110, apply the industry or the company by identifying the segment and key success factors. Justify / explai

Benefits long-term employees in the firm''s home country, Under what condit...

Under what conditions is it ethically defensible to outsource production to a developing world where labor costs are lower when such actions also involve laying off long-term emplo

Explain what are the activities required to produce, What are the outputs o...

What are the outputs of your work unit if you are a manager at a fast-food restaurant? What are the activities required to produce those outputs? What are the inputs?

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