10 Strategic Operations Management Decisions With Examples Pdf
Operations management is an essential component of any successful business. It involves the design, planning, and control of business processes to ensure that products and services are produced efficiently and effectively. Ten strategic operations management decisions with examples in PDF format are available to help support this process.
1. Design of Goods and Services
The design of goods and services is a critical decision in operations management. In this decision, businesses consider the design of their products or services, focusing on features, functions, quality, and performance. For example, Apple is known for its sleek and innovative product designs, which set it apart from its competitors.
2. Quality Management
Quality management is the process of ensuring that products or services meet or exceed customer expectations. This decision involves setting quality standards, developing quality control processes, and continuously monitoring and improving quality. Amazon is an example of a company that puts a strong emphasis on quality management, as evidenced by its customer reviews and high customer satisfaction ratings.
3. Process and Capacity Design
Process and capacity design involves determining the most efficient way to produce goods or services, considering factors such as time, cost, and resources. This decision also involves determining the optimal capacity of production processes to meet demand. McDonald's is an example of a company that has perfected its process and capacity design, as evidenced by its ability to consistently produce fast, affordable, and tasty food.
4. Location Strategy
Location strategy involves determining the best location for a business to operate, considering factors such as cost, proximity to suppliers and customers, and transportation infrastructure. Walmart is an example of a company that has implemented a successful location strategy, as evidenced by its widespread presence in both urban and rural areas.
5. Layout Design and Strategy
Layout design and strategy involve determining the most effective arrangement of equipment, machinery, and personnel in a production process. This decision considers factors such as flow, efficiency, and safety. Toyota is an example of a company that puts a strong emphasis on layout design and strategy, as evidenced by its lean manufacturing system, which aims to minimize waste and improve efficiency.
6. Human Resources and Job Design
Human resources and job design involve determining the optimal approach to hiring, training, and managing personnel in a production process. This decision considers factors such as skills, knowledge, and experience. Zappos is an example of a company that has implemented a successful human resources and job design strategy, as evidenced by its focus on company culture and employee satisfaction.
7. Supply Chain Management
Supply chain management involves managing the flow of goods and services from suppliers to customers, considering factors such as cost, quality, and delivery time. This decision involves coordinating activities such as purchasing, transportation, and warehousing. Dell is an example of a company that has perfected its supply chain management, as evidenced by its ability to deliver customized products quickly and efficiently.
8. Inventory Management
Inventory management involves determining the optimal level of inventory to maintain, considering factors such as cost, demand, and lead time. This decision involves coordinating activities such as forecasting, ordering, and storing inventory. Walmart is an example of a company that has implemented a successful inventory management strategy, as evidenced by its ability to maintain low prices while keeping its shelves stocked with a wide variety of products.
9. Scheduling
Scheduling involves determining the most efficient way to schedule production processes, considering factors such as order quantities, production times, and available resources. This decision involves coordinating activities such as planning, sequencing, and controlling production processes. Southwest Airlines is an example of a company that has implemented a successful scheduling strategy, as evidenced by its ability to maintain high levels of on-time performance and customer satisfaction.
10. Maintenance
Maintenance involves ensuring that equipment and machinery are functioning properly and efficiently, considering factors such as uptime, downtime, and repair costs. This decision involves coordinating activities such as preventative maintenance, corrective maintenance, and emergency repairs. Boeing is an example of a company that puts a strong emphasis on maintenance, as evidenced by its rigorous maintenance procedures for its aircraft.
Conclusion
In conclusion, operations management involves a series of strategic decisions that are critical to the success of any business. These decisions include design of goods and services, quality management, process and capacity design, location strategy, layout design and strategy, human resources and job design, supply chain management, inventory management, scheduling, and maintenance. By making these decisions in a thoughtful and strategic manner, businesses can optimize their production processes and deliver high-quality products and services to their customers.
