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

Explain the management-research question hierarchy, Build the management-re...

Build the management-research question hierarchy for penton media

Quality control, power electronic buys 45ohm resistor, standard deviation f...

power electronic buys 45ohm resistor, standard deviation for this register is 4ohm.sample size of n=

Explain can we solve the problem of crime, Can we solve the problem of crim...

Can we solve the problem of crime? How much responsibility does society have? Are our policies enough? What would you do differently, if anything?

Digitra; cell phone, Ask que Prepare Paul Jordan’s report to John Smithers ...

Ask que Prepare Paul Jordan’s report to John Smithers using regression analysis. Provide a summary of the cell phone industry outlook as part of Paul’s response. stion #Minimum 100

How develop a decision making process, Because of the aggressive actions of...

Because of the aggressive actions of his brokerage firm, a stockbroker feels pressure to recommend to a client a stock he does not consider a good investment. Please develop a deci

Explain what specific actions entrepreneurs can take, Consider the four maj...

Consider the four major reasons for new business failure. Discuss what specific actions entrepreneurs can take to minimize or avoid these causes of failure

Explain how can she be sure of her judgment, How can she be sure of her jud...

How can she be sure of her judgment? • How can she convince the marketers? • How should she act in this situation?

OPERATTION MANAGEMENT, DISCUSS THE ADVISABILITY OF USING MODULAR ASSEMBLIES...

DISCUSS THE ADVISABILITY OF USING MODULAR ASSEMBLIES IN MANFACTURING

Testing the optimality, Step 1 : It is observed that cost of transportation...

Step 1 : It is observed that cost of transportation is to Rs. 144. Step 2: Testing the Optimality : After obtaining the initial basic feasible solution the next step is to test

Justify the duration of the simulation and assumptions, Alabama Airlines op...

Alabama Airlines opened its doors in June 1995 as a commuter service with its headquarters and only hub located in Birmingham. A product of airline deregulation, Alabama Air joined

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