What are the major priorities associated with operations strategy? How has their relationship to one another changed over the years?

The act of creating goods and services is production whereas the set of activities that creates goods and services by transforming inputs into outputs is operation management. This is why, the study of operation management is yet critical and so does its strategies.

Since we know that, operation management is the function of marketing, finance and operation. As a student of operation management, we always like to know how goods and services are produced, what are the set of activities that operation managers carry out. Hence, the major priorities associated with the operations strategy are discussed below:

      a. Product/ service design

The primary priority associated with the operations strategy is the design of good/ services the business firm going to offer to its customers. Operation manager should address questions like what product or service should we offer or how should we design our products and services.

      b. Process selection strategy (Selection of technology)

The designed product and services need to go through process so as to get it produced. Here, what equipment and technologies are required for the production process are made and operation manager acts accordingly.

      c. Quality control (TQM)

All of the stake holders are responsible for the quality of goods or services they offer to the customers. The provided quality must be quantitative as well as qualitative so that every customer they serve will be satisfied.

      d. Location strategy

Location of the firm from where they serve their customers is another important factor associated with the operation strategy. The more convenient the location is, the more customers will visit the firm and eventually that helps for successful operation of the firm.

      e. Layout strategy

Layout strategy is associated with the operation strategy of any firm. The proper management of the physical assets in the firm, placement of required facility in the firm aid in the operation strategy.

      f. Human resource management (HRM)

Operation manager always needs to be aware of creating workable environment in the business firm or quality of work life to the employees. There must be balance of what business firm gives to its employees and what employee gives to the firm. Too much work pressure decreases the efficiency of the employees whereas high wages and salaries will have adverse effect on profitability of the company.

      g. Raw materials (Inventory)

The other strategy associated with the operation strategy is raw materials. The company have clear views of how much inventory of each item should they have and when to re-order the inventory helps is smooth operation of the firm.

     

 h. Production planning, scheduling and controlling

The proper planning, scheduling and controlling is another major priorities associated with operations strategy. This will help the company to determine conditions like are we better off keeping people on the payroll during slowdowns or is subcontracting production a good idea.

      i. Supply chain management

Decisions regarding making or buying of the item required for the business firm, who are our suppliers and how many suppliers we should have are related to supply chain management. Supply chain management, thus, is associated with the operations strategy of the firm.

      j. Maintenance management

Determining who is responsible for the repair and maintenance of the assets of the firm, at what interval should they be checked are related with maintenance management which in turn is associated with the operations strategy.

To sum up, earlier business operations used to perform on single place using available resources. But now, the situation has changed. Because of the development of e-commerce, technologies, internet, globalization, the operation process has become more efficient since business outsources its parts of production that will help in cost reduction and to  have other benefits as well.

Bibliography

Chase, R. B., Jacbos, F. R., Aquilano, N. J., & Agrawal, N. K. (2008). Operations management for competitive management (11th ed.). New York: Tata McGraw-Hill.

Stevenson, W. J. (2012). Operations Management (11th ed.). New York: Tata McGraw-Hill Irwin.