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 in what kind of ways did these mangers respond, In what kind of way...

In what kind of ways did these mangers respond to these challah for example in their approaches to planning leading organizing and controlling?

Operations scheduling in job shop type production, Operations Scheduling in...

Operations Scheduling in job shop type production Operations scheduling is the organizing function of an operations manager. This function of the operation manager is most impor

Devise a regression equation and predict the profitability, Consider the ta...

Consider the table below. This time, the historical profitability of eight locations is listed in the table. Devise a regression equation and predict the profitability of a new sit

Explain produced and sold to break-even, Assume a fixed cost for a process ...

Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10 and the selling price for the finished product is $25. Which of the following

Why hrm-r technologies financial impact of talent management, • Analyze the...

• Analyze the article's perspectives concerning talent management and technology issues. • Suggest strategies for evaluating HRM-r technologies financial impact of talent manage

Describe rented books and did not get the discount, Hi I answers a question...

Hi I answers a question and earned 10 percent off my next purchased. I just rented books and did not get the discount how can i reversed this??

What is lost while no feedback is required, What is lost when no feedback i...

What is lost when no feedback is required? What can an employee do to change this situation when it is a specific company policy NOT to provide feedback? Name two possible re

Define the critical path, The following is a table of activities associated...

The following is a table of activities associated with a project at Bill Figg Enterprises, their durations and what activities each must precede: Activity Duration (weeks) Prece

Explain were the colonists more responsible for winning it, Need reference/...

Need reference/cited for this question. • Were the British more responsible for losing the war or were the colonists more responsible for winning it? Use specific examples fr

Calculate the expected value, C and S Metal company produces stainless stee...

C and S Metal company produces stainless steel pots and pans. C and S can pursue either of two distribution plans for the coming year. The firm can either produce pots and pans for

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