Monday, January 18, 2016

Operations strategy - basic concepts

Some interesting definitions on Operatins Strategy from literature : 

Operations Strategy is a plan specifying how an organization will allocate resources in order to support infrastructure and production. An operations strategy is typically driven by the overall business strategy of the organization, and is designed to maximize the effectiveness of production and support elements while minimizing costs - www.businessdictionary.com


Operations Strategy is the total pattern of decisions which shape the long-term capabilities of any type of operations and their contribution to the overall strategy. " Operations strategy is the tool that helps to define the methods of producing goods or a service offered to the customer.

Operations Strategy is the tool that helps to define the methods of producing goods or a service offered to the customer - www.wikibooks.com

Operations strategy is the total pattern of decisions which shape the long-term capabilities of any type of operations and their contribution to the overall strategy.- Slack and Lewis, Operations Strategy.

Difference between Operations Strategy and Operational Strategy
Operational Strategy is the plan of action implemented by a firm that describes how they will employ their resources in the production of a product or service. An operational strategy is a necessary element for a business and supports the firm's corporate strategy. - www.businessdictionary.com

While operational strategy is basically how the different resources and capacity of the organisation are used to meet the demands of the organisations, Operations strategy is related to how the operations of the organisation could be classified as strategic, tactical and operational operations.

For example, the Works Manager / Supervisor deciding how to meet the day's demands most efficiently utilising the resources at a very cost effective way is Operational Strategy for the day. Deciding on where to locate the plans, warehouses, deciding on the level of replenishment etc are Operations Strategy decisions.

Reliance Fresh deciding on where to locate their warehouses and stores to effectively meet customer demands, how frequently to make purchases, etc relate to Operations Strategy.

No comments:

Post a Comment

Mukesh Ambani shares entrepreneurial lessons ..

Mukesh Ambani is India's richest industrialist, though Reliance family is second to Tata Sons as the largest business conglomerate i...

My popular posts over the last month ..