Discuss the relationship between strategy and oprations management

Relationship between Strategy and Operations Management

An essay presented to

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In partial fulfillment of the requirements for the degree of

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Operations management is about the way organization produce goods and services . Every thing you wear , eat , sit on , use , read or knock about on the sports field comes to you courtesy of the operations managers who organized its production . Every book you borrow from the library , every treatment you receive at the hospital , every service you expect in the shop and every lecture you

attend at university- all have been produced (Slack et al [1995] . In broader terms operations management is the set of tasks for the arrangement of resources by the manager devoted to the production of goods and services in the organization

The central activity of the Operations Management : Is organizing Operations are a transformation process . The resources (like raw materials , information or customer itself ) are transformed into final goods and services . Elaborating the process actually helps us to understand the `Operations Management ' process completely . The transformation includes designing services , products and delivery system management and control of operation system and then finally improving its ways . It is multidisciplinary . It included logistics production planning or process control . Operations management concepts are derived from various discipline like strategy marketing engineering , information management , purchasing logistics , economics accounting , organizational behavior and industrial engineering provides All these disciplines give a broader view of various strategies and management techniques , which in turn helps them to achieve the objectives of the organization This diagram by Voss (1985 ) gives a better picture of it

During the post war period and till 1960 's , Operations management or better known as factory management (at that time ) was highly recognized concept . But after that organization management was a set of quantitative models merely use to solve problems like quality control stock control , facilities layout and so on . Though these models were formalized during the scientific management movement but could not gain any importance or had any say on the issues of competitiveness and strategic positioning . But then twenty years later it has gained its position and importance . It is included in all value stages (including initial design of products and services , purchasing of bought in materials and logistics )and has become strategic too . The service operation , service innovation and service process are all part of operations management . The concepts like just in-time , TQM , EOQ have all regained its position in the competitive environment

To understand the relationship between operations management and strategy lets have an idea of the term `strategy . The word strategy was borrowed from the military and was used in business . In simpler terms it is important actions necessary to realize these directions . Henry Mintzberg (1994 ) suggested the use of strategy by people in four ways .Some term it as a plan ,how a means of getting here to there . Others term it as a pattern , in actions over time or as a position , which reflects decision to offer particular products or...