Operations strategy is a system that an organization implements to achieve its long-term objectives and mission. It involves decisions based on multiple factors, including product management, supply chain, inventory, forecasting, scheduling, quality, and facility planning and management. Operations strategy is the planning and decision-making processes of an organization necessary to achieve its operational objectives. It includes the development and execution of plans, policies, and procedures that optimize resources, minimize costs, and improve the efficiency and effectiveness of the organization's operations. The operations function is responsible for managing the resources needed to produce the company's goods and services.
The operations strategy is the plan that specifies the design and use of resources to support the business strategy. This includes the location, size, and type of facilities available; the skills and talents of the workers required; the use of technology, the special processes needed, special equipment, and quality control methods. The operations strategy must be aligned with the company's business strategy and allow the company to achieve its long-term plan. For example, FedEx's business strategy is to compete on delivery times and reliability. To ensure fast delivery, FedEx purchased its own fleet of aircraft.
To ensure reliability of deliveries, FedEx invested in operational sustainability. This means that they are able to maintain existing practices without jeopardizing future resources. Operations management is the profession that encompasses the planning, implementation, and supervision of production. Operational strategies often include additional strategies such as product development, market penetration, customer interaction, supply chain etc. An effective operations strategy will help create smoother cohesion between departments when needed. When writing a strategic operating plan it is important to consider if it helps provide a superior consumer experience.
This could include accelerating production so that the consumer can get it faster or improving quality. Resources can be redirected, canceled, increased or reduced according to the needs of your company's operations. It is also important to test small phases of your plan in a controlled manner to see if the pace and flow meet your desired expectations. With an effective operations strategy, operations management professionals can optimize the use of resources, people, processes and technology.
