Literature Review of Operation Strategy & Cvp

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Operation Strategy
In today’s fast moving world, it is very important for companies to have a clear operation strategy to achieve their business goals. An operation strategy is a long-term development plan which uses the major resources in order to achieve the business strategy in a company. Speaking simply, the operation strategy is to add value for the customers (Davis, Aquilano & Chase, 2002). The role of operation strategy is to offer a plan for operation function in order to make the best of its resource. An operation strategy is point out the guidelines and plans for utilizing the organization resource for supporting the business strategy of a company (Reid & Sanders, 2007). According to Davis et al. (2002) that operation strategy indicates wide questions about how to utilize the major resource of a company. These questions include: How large do we make our facilities? What type of process do we install to make the products or provide service? What will our supply chain look like? What will be the nature of our workforce? How do we ensure quality? Operation strategies are developed from the competitive factors of a company, which are low cost, high quality, fast delivery, flexibility, and service (Davis et al, 2002). In order to help a company to decide which competitive factors to focus on, it depends on order winners and order qualifiers, which are concepts developed by Terry Hill, a professor at Oxford University (Reid & Sanders, 2007). According to APICE Dictionary (2008) order winners are “those competitive characteristics than cause a firm’s customers to choose that firm’s goods and services over those of its competitors. Order winners can be considered to be competitive advantage for the firm. Order winners usually focus on one (rarely more than two) of the following strategic initiatives: price/cost, quality, delivery speed, delivery reliability, product design, flexibility, after-market service, and image (as cited in Simister, 2011,...
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