Operation Management

Only available on StudyMode
  • Download(s) : 509
  • Published : February 25, 2011
Open Document
Text Preview
operation management

• Executive Summary
Operation management is defined as the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services. Somerset furniture company’s global supply chain was getting lose its competitive edge and even faced shipments delayed by as much as 40%. The company prides itself on customer service and fears that late deliveries to its customers would harm its credibility and result in lost customers and excessive inventories. Somerset set up new strategy and tactics to meet the goals and improve the global supply chain. First, Somerset found out where the problems are and focused on its core competences that improve productivities and reduce inefficiency to win in the global market. Somerset furniture company (SFC) considered Quality and Time as its core competences. Second, SFC planned to implement and strengthen its core competences. SFC adopted EDI, RFID and RTA (ready to assembly) to acquire more competitiveness on time by reducing time, improving the delivery of economic value to customers. SFC accepted TQM including Lean production, Six Sigma and ISO 9000 to get a competing on quality for maintaining or improving the quality of an organization’s products and services. Keys to success in operation strategy lie in identifying what the priority choices are, understanding the consequences of each choice, and navigating the ensuring trade-offs .(Chase et al., 2006) Finally, SFC would resolve the problems one by one and achieve its improvement in the whole supply chains.

Table of Content

Introduction………………………………………………………..4~6

Body……………………………………………………………..…6~15 * Competing on Time………………………………………....6~9 * Competing on Quality………………………………………9~13 * Competing on Cost……………………………………….13~14 * Competing on Flexibility………………………………….14~15

Conclusion…………………………………………………..….…15

Reference…..………………………………………………..….…16

• Introduction

Strategic and tactical view point
Operations management is important. It is concerned with creating the services and products upon which we all depend. And all organizations produce some mixture of services and products, whether that organization is large or small, manufacturing or services, for profit or not for profit, public or private. Operation management is at the centre of so many of the changes affecting the business world – changes in customer preference, changes in supply networks brought about internet based technologies, changes in what we want to do at work, and how we want to work, where we want to work, and so on. (Slack 2010) As globalization increased, customers demand better quality, faster deliveries at a lower cost. “In today’s global markets, you don’t have to go aboard to experience international competition. Sooner or later the world comes to you.” (Bartlett 2000)

Although Somerset was initially successful at outsourcing its manufacturing process on a limited basis, is has since discovered, lots of supply chain problems. In order to regain a reputation for high quality, affordable furniture for a growing U.S market, it has to develop innovative and effective supply chain management. First, Somerset has to focus on core competences (Hamel & Prahalad, 1994). It needs to identify which of its attributes provide value to the final customers, are relatively rare in the sense that few competitors possess them and are difficult to copy, that is, where there are barriers to entry.

• Core competence: Quality and Time strategies
Traditional strategy of business organizations has tended to emphasize cost minimization or product differentiation like those of Somerset. While not abandoning those strategies, many organizations have embraced strategies based on quality and time. Quality based strategies focus on maintaining or improving the quality of an organization’s products or services. Time based strategies focus on reducing time needed...
tracking img