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The Process Strategy in Operations Management:
In operations management a good process strategy will help your processes to flow better and this will have an impact on your overall operations management.
When you are creating a product or a service a good process strategy can hand you a lot of benefits. These would include cutting cost because you are going to analyze all your different processes in dept.
The foundation of success in strategy and operations starts with your KPI System
- Do you have a list of your key metrics and KPIs that drive your results?
- Do you have a simple system to track and monitor your KPIs?
- Are you able to identify any potential issues with your performance on time (before it is too late)?
Download the Excel KPI Dashboard (simple and yet powerful way to manage your strategic and operational KPIs):
Excel KPI Dashboard
As a result of that you will start to notice processes that could’ve run at a cheaper rate. It will also help your processes to operate more efficiently than before. Taking a microscopic view on them you will again help you noticing areas of inefficiencies that need to be fixed.
Another important benefit is that it will allow you to create a cheaper product. Normally when you’re processes gets cheaper your margins will improve and you can create products with more quality at a cheaper rate and this can help you to gain market share.
As an operations manager there are four basic strategies you can implement in your operations management to help it perform better. These are product focus, process focus, repetitive focus and mass customization.
These strategies can help you to improve your operations. As an operations manager they can make your life a lot easier than it usually is on a daily basis. You can see each in more detail below.
To implement this strategy your company’s operations must be consistent and quality must be maintained at a high level at all times. It’s a low variety and high volume process.
For this strategy to work effectively departments should be organized by product. The fixed cost for this strategy is usually high, while leaving the variable cost low.
This is when you are going to organize your production processes in such a way that the processes are going to run in a low volume and high variety basis.
Additionally this strategy is going to allow it to be more flexible. Because of that the products can be allowed to move in different periods between the processes. While for example the repetitive focus processes are more systematic and are done in a sequenced format.
These facilities are normally organized in an assembly format. As stated before it is less flexible than the process focused strategy but can tend to be more efficient.
This is identified as one of the most complex of the other processes. You produce goods at a rapid pace at low cost to satisfy unique customer desires. It is also usually seen as a flexible strategy and can help your operations to maintain efficiency.
In summary by looking at all the strategies shown above, you can see that there are quite a few important options you can choose from when thinking about operations management. For operation managers it’s important to choose the right strategy for your business.
Continuous tracking of the processes to maintain quality is a must. There are companies who have even used 3 of the strategies in an entire business year, because they want to know which one works best for their organization.