H1.4 Operations Strategies

What are they and why are they important?

Operations strategies are approaches to improve every aspect of the systems and processes of a firm’s operations. These strategies extend from the sourcing of inputs, to improving every aspect of its internal processes, through to the development of new products through innovation.

Operations Strategies are the corrective measures an operations manager can deploy in response to an identification of deficient performance in the monitoring stage.

The entire rationale behind these strategies is to help a business achieve the broader strategic goals of a business, such as;

• Improved efficiency (reduction of waste)

• Improved quality (reduction of defects)

• Improved productivity (reduction in wasted time)

• Improved profitability (through BOTH the reduction of costs and the development of new product features and functions through R&D)

Important:

Depending upon the circumstances of the firm (what influence is most urgent—internal and external), a different strategy would be required.

Not all strategies apply to all business situations; you must know what strategy ‘fits’ the business to make desired improvements in response to the specific influences a business faces. It would be a very poor doctor that offers a plaster caste on a patient's leg who was complaining about a fever.

You will be required to evaluate the effectiveness of various strategies for certain types of businesses in various situations. 

Some will fit brilliantly (highly effective) others not so much (irrelevant, ineffective…)