When it comes to running a successful business, having a well-planned operations strategy is essential. This strategy should be based on the company's overall mission and core business processes, such as production, supply chain, and logistics. It should also focus on reducing process costs and improving the profits of the entire company. An operations strategy requires an eagle's eye view of the company as a whole.
It should consider multiple factors that must be taken into account together, such as technology, operations, distribution, marketing, and organizational skills or capacities. This strategy should also reflect and support the corporate strategy in order to ensure the delivery of quality goods and services that keep customers satisfied and moving towards the company's overall mission. A great example of an effective operations strategy is Dell's just-in-time (JIT) strategy. This allowed them to operate with the lowest inventory level in the industry.
Other strategies may include using superior capacity to transform material or information quickly, mastering new technologies and bringing processes online, or quickly designing and introducing new products. In order to create an effective operations strategy, there are several steps that must be taken. First, it is important to identify the key success factors (KSFs) that are related to technology, operations, distribution, marketing, or certain organizational skills or capacities. Then, it is necessary to analyze the current situation in order to identify any areas that need improvement.
After this analysis is complete, it is time to develop a plan for implementing the operations strategy. Once the plan has been developed, it is important to monitor its progress and make any necessary adjustments along the way. Finally, it is essential to evaluate the results of the operations strategy in order to determine whether or not it was successful in achieving its goals.
