Mission Statement is to give you safe wheels to move around” ¾ Goals are to provide utility, and heavy equipment mobiles. ¾ Tactics consist of employing TQM methods to accomplish strategies Planning and Decision Making Planning and decision making concepts make use of setting a mission, goal, strategy and achieving the end result through some effective and practical tactic. In hierarchical order the organization first makes or develops a mission and employ tactics by developing operational procedures. Strategy Example You are a business student at Virtual University of Pakistan. You would like to have a career in business, have a good job, and earn enough income to live comfortably Strategy Tactics Mission
Production and Operations Management –MGT613 VU © Copyright Virtual University of Pakistan 13 Mission Goals Organizational Strategies Functional Goals Finance Strategies Marketing Strategies Operations Strategies Tactics Tactics Tactics Operating procedures Operating procedures Operating procedures Mission : Live a good life • Goal: Successful career, good income • Strategy: Obtain a Business Degree from VU. • Tactics: Select a business field of your interest and high market value • Operations: Register, buy books, take courses study, graduate, apply & get job Examples of Strategies 1. Low cost ( Cost Leadership/Economical ) 2. Scale-based strategies ( Critical Value) 3. Specialization ( Specific characteristics) 4. Flexible operations ( To change production design of products on the same infrastructure) 5. High quality ( exceeds customer requirements and satisfactions) 6. Service ( meets minimum standard specifications) Distinctive Competencies The special attributes or abilities that give an organization a competitive edge. 1. Price 2. Quality 3. Time 4. Flexibility 5. Service 6. Location
Production and Operations Management –MGT613 VU © Copyright Virtual University of Pakistan 14 Lesson 04 Distinctive Competencies The special attributes or abilities that give an organization a competitive edge. 7. Price 8. Quality 9. Time 10. Flexibility 11. Service 12. Location A. Operations Strategy • Operations strategy – The approach, consistent with organization strategy that is used to guide the operations function. We first study strategy design process with example for manufacturing and Services. Strategy Design Process Example Strategy Process Customer Needs Corporate Strategy Operations Strategy Decisions on Processes and Infrastructure More Product Increase Organization Size Increase Production Capacity Build New Factory Strategy Map ancial Perspective Customer Perspective Internal Perspective Learning and Growth Perspective Improve Shareholder Value Customer Value Proposition Build-Increase-Achieve A Motivated and Prepared Workforce Desired Results Strategy Design Process for Services
Production and Operations Management –MGT613 VU © Copyright Virtual University of Pakistan 15 Relationship between Operations and Organizational Strategy • Organizational strategy is ¾ an over all big picture for the whole organization.