Operations Strategy is the pattern of decisions that shape the capabilities, objectives and contribution of the organization’s operations to satisfying the market requirements. Operations strategies should reflect top-down corporate goals while also the bottom-up experience of operational reality.
Operations performance objectives:
- Quality: error free outputs according to their specification.
- Speed: time to transform input into the desired outputs.
- Dependability: its ability to inform what’s going on.
- Flexibility: its ability to vary or adapt its activity to modify the output.
- Cost: monetary expenses needed to accomplish its goal.
The relative importance of each objectives depends on how this organization competes in the market (cost leader vs. differentiator). You must acknowledge the trade-offs between volume (standardizations + economies of scale) and variety (allowing for flexibility and tailored orders). See ‘efficiency frontier’ graph between cost efficiency and variety to analyze this trade-off.
Another good way to determine their relative importance is to determine wheather each operation is a ‘qualifier’ (needed to comply with what customers expect) or an ‘order-winner’ (needed to outperform competitors).