Question – 1 Explain the basic competitive priorities considered while formulating operations strategy by a firm?
Ans.1 - Operations Strategy is the development of a long term plan for using the major resources of the Firm for a high degree of compatibility between these resources and the Firm’s strategy . Operations strategy addresses very broad questions about how these major resources should be conﬁgured to achieve the desired corporate goals.
Some of the major long-term issues addressed in operations strategy are :- 1. How large do we make our facilities?
2. What type of process(es) do we install to make the products or provide services? 3. What will our supply chain look like?
4. What will be the nature of our workforce?
5. How do we ensure quality?
Competitiveness is at the core core of all strategy. It is the key to developing an effective oprations strategy lies in understanding how to create value for customers. Speciﬁcally, value is added through the competitive priority that are selected to support a given strategy. Competitive priorities
Here is some basics of Competitive priorities:-
1.Cost –( Providing low cost products)- A firm competing on a price or cost basis is able to provide consumers with an in-demand product at a price that is competitively lower than that offered by firms producing the same or similar service. In order to compete on a price basis, the firm must be able to produce the product at a lesser cost or be willing to accept a smaller profit margin.
2. Quality –( Providing high quality products)- Quality is the driving factor for any organization . When someone buying a product, a customer will always thaink about the value of the money he is investing. But if product’s quality is best he will provoke to buy higher value product.
3. Delivery – (Providing products quickly)- Market considers speed of delivery to be an important determinant in its purchasing decision. Here, the ability of a ﬁrm to provide consistent and fast delivery allows it to charge a premium price for its products. Superior service can be characterized by the term customer service or it could mean rapid delivery, on-time delivery and convenient location.
4. Flexibility - Providing a wide variety of products.
Flexibility enables to meet the changing demands of customers, in the order develop new processes and material.Flexibility consists of two dimensions, both of which relate directly to how the ﬁrm’s processes are designed.One element of edibility is the ﬁrm’s ability to offer its customers a wide variety of products. The other dimension of ﬂexibility is how fast a company can change its production facilities to produce a new line of products.
6. Service - How products are delivered and supported.
Service ability is defined by speed, courtesy, competence and ease of repair. This is can be an extremely important characteristic as witnessed by the proliferation of toll-free hot lines for customer service.
Having well-located facilities-offices, stores, and plants is a primary advantage because of the long lead time needed to build new ones. Expansion into new products or services may be accomplished quickly.
Question – 2
a. List the benefits of forecasting
b. Explain the significance of plant location decision
A. List the benefits of forcasting.
An organization uses a variety of forecasting methods to assess possible outcomes for the company. The methods used by an individual organization will depend on the data available and the industry in which the organization operates. The primary advantage of forecasting is that it provides the...