Is a consistent pattern of decisions for operations and the associated supply chain that are linked to the business strategy and other functional strategies leading to a competitive advantage for the firm (Roger ,2013).Operation strategies and decisions are meant to fulfill the needs of the business and add competitive advantage to the business.Operational strategy is concerned with the reconciliation of market requirements and operation resources (James, 2017). It involves Satisfying market requirements businesses meet customer needs but remain competitive by setting appropriate performance objectives. Making decisions on the deployment of operational resources which affect the performance objectives of the organization. Any strategy requires an understanding of the dynamics of the market .Electromechanical Company Inc. should do a market research to understand the market needs and dynamics. The market needs inform the company of the issues to be considered. The market research will provide useful information about the competitors, customers'expectations, any missing links between customer expectation and the intensity of the competition.
Slack et al (2004) there are five operational objectives.
1) Cost ; ability to produce at low cost
Electromechanical Company Inc. could go paperless in all its documentation. Processes of electromechanical Inc. are documented manually and kept for future reference. To enable them save on costs it will be prudent for the company to invest in technology. Records will be stored electronically access electronically. This will improve on the efficiency and speed of retrieving records.
2) Quality: the ability to produce in accordance with customer specification. To ensure quality, there should be inspection of the company products during and after processing and ensure continuous improvements of their processes.
Quality is subjective. Quality needs to address product design if it meets the customer requirements and Process quality if the products are error free.
3) Speed: ability to do things quickly in response to customer demands. Ensure timely delivery of the products and services
The customers should be able to rely on the company to provide the product when needed.
The environment changes rapidly. Electrochemical company should be able adapt to the changes quickly. In regards of the product it should be able to change from manufacturing of one product to another. Their products should be easy to customize.
Value Added Services
Value added services differentiate the organization from others.it helps to foster a good relationship that make customers loyal to the organization. This include
- Provision of information Electromechanical Company Inc. should provide information about their products when it is required.
- Problem solving and field support Electromechanical Company Inc. should provide training on usage, free installation and repairs.
Inventory represents a large percentage of the business and should be well managed to avoid unnecessary losses. Unless inventories are managed they are unreliable inefficient and costly. Inventory management involves planning for the optimum quantities and materials at all stages in the processing cycle.it is critical for electron mechanical Inc. to manage its inventories carefully to avoid unnecessary costs. Costs associated with poor management of inventory include: increased carrying costs, loss of working capital, and stock out costs among others. Electromechanical company Inc. should;
- Determine the optimum quantities of materials and procedure of review and adjustment if any.
- Determine the degree of control
- Plan and design of the inventory control system. Electromechanical Company Inc. to introduce an organizational structure and operating policies for monitoring inventory. These procedures are for ordering and receiving of goods, timing and order placement and keeping track.
Just in Time System
Electromechanical company Inc. should introduce a just in time system for inventory management. This will ensure that inventory of raw materials and work in progress falls to that needed in a day.
Purchasing of inventory should be done electronically through the internet. The internet is changing not only how businesses transact but also how supply chain can be made more efficient. With the availability of internet it is prudent for electromechanical Inc. to develop a database through witch to procure their materials. A database will allow electronica to view a list of suppliers from whom they can place their orders online. Order information is taken and the company is able to see if the product they ordered from is available. If not then it will save them the time to make an order from a different supplier. The database improves coordination between businesses. Online menus are provided to ensure a customer makes the right choice. Information on the shipment and manufacturing status will be provided online. Through this database order placement is made much easier and efficient.
Introduction of the internet has made business to go global. Markets have become global in nature and most companies are operating on an international level. Competition has increased due to globalization businesses are operating beyond territories. Most of the products introduced in the market are global in nature. Considering the diversification of culture in the various countries business decisions have to be handled differently. Each country has its own unique features in terms of technology, processes and cost structure. Global businesses use global strategies to venture into their new markets. Logistics are made at a global level while the supply chain strategy is aimed at achieving a sustainable level. Electromechanical Company Inc., in venturing into the global markets it should develop new strategies that take into consideration all the qualities of a global market. The supply chain strategies should be more global and not feature into a global market with the same strategies employed locally.
Environmental and sustainable development is one of the emerging issues in businesses today.it has become more important in in operations and supply chain objectives. Sustainability aims at eliminating environmental hazards caused by daily to daily running of businesses. Laws and regulations have been legislated to close businesses that are not following the environment safety standards. Supply chain should aim at reducing the environment across all the operations. Sustainability examines all the products development, sourcing, manufacturing, packaging, distribution, transportation, service and end life management.it aims to
- Eliminate air, water and land pollution
- Reduce energy consumption
- Incorporate products reuse
- Work with suppliers to use recyclable and biodegradable packaging.
Electromechanical company Inc. should ensure all its processes are not causing harm to the environment. Their strategy should be developed in line with the aim of conserving the environment. Their products should be packaged, transported and processed in a way that is acceptable with the safety standards and promotes sustainability at all times.
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