Operation Management

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It is usually stated that ‘the structural decisions items of an operations strategy reflect the hardware of the firm, while the infrastructure decision areas represent the firm’s software’. Comparing structural decisions with the hardware of the firm and the infrastructure decisions as its software, it shows that the structural decisions are very important and the firm cannot exists without them because without a hardware computer would not exist and the software would have nothing to run on. Structural decisions involves a big investment decisions and it is very difficult to change these decisions without the significant financial losses, that is why structural decisions require detailed considerations about the operations across different countries. Generally, structural decisions areas include: facilities decisions, capacity management, process technology and the supply network. On the other hand, infrastructural decisions are concerned with the management of the systems and procedures through which the physical assets operated. Also infrastructural decisions can be changed easier than structural decisions, but it still involves complex considerations. However, the infrastructural decisions deal with the most important part of the operation management: Planning and control. It is concerned with matching supply from the organization’s operations with demand from its customers. Also infrastructural decisions include Quality, Work Organization, Human Resources, New Product Development and Performance Measurement. Nevertheless, in the statement it seems that structural decisions are more important than the infrastructural decisions, because hardware seems to be more important than software. However, the computer cannot operate without both, so both of them are very important parts of the firm.
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