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

Difference among using an exact optimization technique, What is the differe...

What is the difference between using an exact optimization technique and a heuristic to solve a problem?

How library to research and analyze markets and competitors, E-commerce is ...

E-commerce is the trend that most companies are going toward now a days. You are to select one business that does not already employ e-commerce and develop an Internet strategy for

Explain requirements of alliance membership, In what ways might the divisio...

In what ways might the divisionalized forms of most airlines lend themselves to the requirements of alliance membership? In what ways might they be compatible with the organization

Explain job related to hit that you desire, Prepare a list of 20 interview ...

Prepare a list of 20 interview questions for me (your potentital employer) to ask you (the job applicant). As you write your questions, keep in mind that they should be tailored to

Attributes for the role of operations manager, 1. List the following 10 att...

1. List the following 10 attributes in the order you consider them necessary for the role of operations manager: people skills; eye-for-detail; mathematical skill; strategic thinke

Different steps needed for proper decision making, Quesrion: Oceania Ho...

Quesrion: Oceania Hospitals has recorded demand for heart transplant surgery over the past few years. The data is given in the following table: a) You have been hired

Explain what are steps for effectively manage diversity, Why the succession...

Why the succession of Ursula burns to the top position at Xerox was considered historic? Why are there so few women and minority CEOs of large corporations? What steps have m

Explain the managerial process, The Managerial Process text. Given the proj...

The Managerial Process text. Given the project network provided, compute the early, late, and slack times for the project. Share your calculations and explain how you came up with

Environmental forces, Aska) what types of strategic plans must wild west ma...

Aska) what types of strategic plans must wild west make? Is the "doing-nothing" viable? If Wild west''s mission appears too broad, which business would you trim first? b) what env

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