Operations Managment
Source: Honda Motor Company
Introduction
If any operation wants to understand its strategic contribution it must answer two questions. First, what part is it expected to play within the business - that is, its role in the business? Second, what are its specific performance objectives? Both these issues are vital to any operation. Without an appreciation of its role within the business, the people who manage the operation can never be sure that they really are contributing to the long-term success of the business. At a more practical level, it is impossible to know whether an operation is succeeding or not if the specific performance objectives against which its success is measured are not clearly spelt out. This chapter deals with both these issues. On our general model of operations management they are represented by the areas marked on Figure 2.1.
Figure 2.1 This chapter covers the role and strategic objectives of operations management
1.
Chapter 2 The strategic role and objectives of operations
Key questions m
What role should the operations function play in achieving strategic success?
What are the performance objectives of operations and what are the internal and external benefits which derive from excelling in each of them?
Operations management can 'make or break' any business. Not just because the operations function is large and for most businesses, represents the bulk of the assets and the majority of the people, but because it makes the business competitive by providing the ability to respond to customers and by developing the capabilities that will keep it ahead of its competitors in the future. For example, the role and performance of the company's operations function is hugely important to TNT Express. It is able to maintain its reputation largely because of the performance of its operations processes. But if an operations function cannot produce its products and services effectively, it could 'break' the business by
Introduction
If any operation wants to understand its strategic contribution it must answer two questions. First, what part is it expected to play within the business - that is, its role in the business? Second, what are its specific performance objectives? Both these issues are vital to any operation. Without an appreciation of its role within the business, the people who manage the operation can never be sure that they really are contributing to the long-term success of the business. At a more practical level, it is impossible to know whether an operation is succeeding or not if the specific performance objectives against which its success is measured are not clearly spelt out. This chapter deals with both these issues. On our general model of operations management they are represented by the areas marked on Figure 2.1.
Figure 2.1 This chapter covers the role and strategic objectives of operations management
1.
Chapter 2 The strategic role and objectives of operations
Key questions m
What role should the operations function play in achieving strategic success?
What are the performance objectives of operations and what are the internal and external benefits which derive from excelling in each of them?
Operations management can 'make or break' any business. Not just because the operations function is large and for most businesses, represents the bulk of the assets and the majority of the people, but because it makes the business competitive by providing the ability to respond to customers and by developing the capabilities that will keep it ahead of its competitors in the future. For example, the role and performance of the company's operations function is hugely important to TNT Express. It is able to maintain its reputation largely because of the performance of its operations processes. But if an operations function cannot produce its products and services effectively, it could 'break' the business by