Needs for trade- offs - business strategy, Operation Management

Assignment Help:

Needs for Trade- offs - Business Strategy

In recent years another reason for questioning the need for trade-offs has arisen. In manufacturing industries great efforts have been expended in developing process technologies, and in particular the application of computers, to create production systems capable of mass customisation. Unlike a mass production system, which produces a standard product at low cost, a mass customisation system would produce 'specials' (traditionally the province of the high-cost job shop) at similar low cost. Such a system has been developed by Levi Strauss, the jeans manufacturer, allowing customers to have their jeans made to measure.

The customer's sizes are sent electronically to the factory, where a computer-driven production system automatically produces the jeans to the specified sizes. A few days later the customer may collect the jeans. Impressive though such technology may be, it raises issues. What then to measure? Ideally, the measures chosen will relate directly to the business qualifiers and order winners. However, care is required in the choice of operations performance measures; the order winners themselves may be inappropriate. For example, consider a business which has identified low price as the prime order winner. Price is an external (market) variable, which may rise or fall for reasons other than operational performance eg in response to competitors' pricing, sales promotions, seasonal price variations, etc. It would be unreasonable to measure the week-to-week performance of operations personnel on the basis of such a variable, which can change substantially for reasons outwith their control. What is needed is an internal (operational) variable, relevant to the order winner concerned: in the case of price it might be appropriate to measure unit cost, labour productivity or equipment utilisation.


Related Discussions:- Needs for trade- offs - business strategy

Explain how can advertisers use the vals information, How can marketers use...

How can marketers use the VALS information to serve consumers better? Name five types of products or services for which the VALS information would be particularly useful. Explain.

Mb0044, What do you understand by “line balancing”? What happens if balance...

What do you understand by “line balancing”? What happens if balance doesn’t exist?

Role or forecasting in capacity planning, Role or Forecasting in capacity P...

Role or Forecasting in capacity Planning The marketing department plays a major role in providing demand forecasts based on which both long term as well as short term capacity p

Explain striking in order to have a union recognized, Elections under the N...

Elections under the NLRA were intended to replace the need for striking in order to have a union recognized.

Explain factors weighing the pros and cons, Examine each possibility and th...

Examine each possibility and the factors you will consider in weighing the pros and cons.

Explain leave covered under the family medical leave act, Bella, a single m...

Bella, a single mother, worked for one of Casper's Burger King restaurants, where she had a record of perfect attendance. One Saturday, her three-year old son awoke with a high fev

Write some possible entities and attributes, Develop a list of some possibl...

Develop a list of some possible entities and attributes located in chill's restaurant database.

Describe what is the reorder point, The injection moulding department of a ...

The injection moulding department of a company that operates 24x7 uses an average of 20 gallons of special lubricant per day. It takes two weeks for an order of lubricant to be del

Explain scheduled preventive maintenance, Christopher's Cranks uses a machi...

Christopher's Cranks uses a machine that is designed to produce 100 cranks per hour. The firm operates eight hours per day, five days per week. Due to operating constraints (regu

Requirements from an operations perspective of competing, Question 1: A...

Question 1: A hotel has decided to focus more strongly on customer service and has just conducted a customer survey. Unfortunately, the results show that many customers are dis

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd