Om Critical Decision

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Om Critical Decision

By | April 2013
Page 1 of 3
10 critical decisions in OM (Regal Marine)

Design of goods and services
What good or service should we offer?
How should we design these products and services?
The company designs, manufactures and markets 22 different boats in a luxury category. The goal of the company related to the product is to provide value, quality and satisfaction to the customer.

Managing quality
How do we define quality?
Who is responsible for quality?
The product should be distinctive, that means that the product has features and benefits to stand out from other similar products. Mainly the management is responsible for the quality. Usually managers make the decisions to achieve their goals. Another important item for quality is the communication and the “team-spirit” within the company.

Process and capacity design
What process and what capacity will these products require?
What equipment and technology is necessary for these processes? The company follows a differentiation strategy to persue its mission (differentiation-better, response-faster, cost leadership-cheaper).

Location strategy
Where should we put the facility?
On what criteria should we base the location decision?
The distributors should have the calibre to represent the product in a way which will sell in a market place. It is also an important question in which country the production will take place. If the production gets outsourced in low- wage countries probably the quality decreases, which can have bad effects on the company image.

Layout strategy
How should we arrange the facility?
How large must the facility be to meet our plan?
Different models should be produced on different assembly lines in separate buildings. It is also important to have some alternate space to expand if there is a need for it. Furthermore the facility should be close to the suppliers of the company.

Human resources and job design
How do we provide a reasonable work environment?
How much can we expect our...