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Platts and Gregory Approach - Operation Management
The Platts and Gregory approach has three steps and is based on the approach of comparing what the market wants with how the operations function performs. The three stages are as follows:
Step 1 The market position is assessed in terms of opportunities and threats faced by the organisation in its competitive market(s). It involves identifying the factors which are required by the market and compared to the level of achieved operations performance. The procedure compares 'profiles' of market requirements and actual operational performance. This is illustrated in this figure.
Step 2 The capabilities and practices of the operation are assessed in order to establish how they contribute to factors required by the market determined in step 1.
Step 3 Concerns the consideration of alternatives and development of new operations strategies in order to close the gaps identified in steps 1 and 2.
The first process is expected to incur $280,000 of fixed cost and add $60 of variable cost for each unit produced. The second process has fixed costs of $200, 00 and adds $70 per e
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