Make Better Strategic Decisions and Improve Sustainable Competitive Advantage
In any business enterprise decisions can be made at varying levels in the organization. Managers at all levels in the organization must make decisions on behalf of a company. Those decisions range from simple selection and approval decisions, of which there are a lot of research, to very difficult decisions - strategic decisions. The term decision is used when a grocery store customer encounters an entire aisle of breakfast cereals, we say he has a decision to make. When a high school senior considers which college to attend, we say she is facing a decision. When a poker player weighs whether to raise or fold, that's a decision, too. And when a company faces an opportunity - to enter a new market, acquire another company, or launch a new product - what is required of its management? A decision. The same term is applied to routine as well as complex deliberations, to both small-stakes bets and high-stakes commitments, and to exploratory steps as well as irreversible moves. All these decisions have one property in common, the fact that people have to make up their minds in a great variety of circumstances.
Strategic decisions are complex, unstructured and novel, and involve major choices of actions that affect and influence the business organization as a whole. Strategic decisions are influenced by the decision makers knowledge, available information, and mind-set - values and beliefs. Tactical decisions are concerned development of resources and capabilities in functional areas to support implementation of strategic decisions. They involve developing functional/divisional plans, structuring workflows, establishing distribution channels, acquisition of resources such as human resources, materials, and money needed for implementing strategic decisions. Operational decisions affect specific day-to-day activities of the enterprise. These decisions are based on facts/data regarding business events and do not require much of business judgment. Administration is simply an activity that concerns itself with day-to-day enforcement of policies, rules, and conduct of affairs in the organization.
Our visualization system that enables people (managers and workers) in an organization to better visualize the organization's strategy in its various manifestations provides a framework for consistently addressing the challenges of shared understanding of interpretation of organization's situational analysis data. Visualizing refers to a person's ability to create "pictures" - mental models - in their heads based on text we read, words we hear, or activities we are about to perform. Our organization visualization system helps people in an organization visualize abstract and intangible concepts specific to their organization such as: strategy, capabilities, distinctive competencies, competitive advantage, and performance.
Strategic decisions are complex, unstructured and novel, and involve major choices of actions that affect and influence the business organization as a whole. Strategic decisions are influenced by the decision makers knowledge, available information, and mind-set - values and beliefs. Tactical decisions are concerned development of resources and capabilities in functional areas to support implementation of strategic decisions. They involve developing functional/divisional plans, structuring workflows, establishing distribution channels, acquisition of resources such as human resources, materials, and money needed for implementing strategic decisions. Operational decisions affect specific day-to-day activities of the enterprise. These decisions are based on facts/data regarding business events and do not require much of business judgment. Administration is simply an activity that concerns itself with day-to-day enforcement of policies, rules, and conduct of affairs in the organization.
Our visualization system that enables people (managers and workers) in an organization to better visualize the organization's strategy in its various manifestations provides a framework for consistently addressing the challenges of shared understanding of interpretation of organization's situational analysis data. Visualizing refers to a person's ability to create "pictures" - mental models - in their heads based on text we read, words we hear, or activities we are about to perform. Our organization visualization system helps people in an organization visualize abstract and intangible concepts specific to their organization such as: strategy, capabilities, distinctive competencies, competitive advantage, and performance.
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Strategy Formulation
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Strategy Implementation
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Strategy Execution
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Operations Engine
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Organization Strategy Visualization
Strategy visualization provides the methods to support managers in envisioning their organization's strategy. Organization strategy is modeled as a layered hierarchy of a system of strategic decisions. The layers of the hierarchy include corporate, business, and operations strategy levels, and the system is visualized through the Strategic Engine model. A strategic engine is company specific, customized to the company's own situation and performance objectives.
The Strategic Engine is an abstraction of the concept of strategy as a system of decisions organized around a layered model comprising a 3-level hierarchy of corporate strategy, business strategy, and operations strategy with the rest of the other functional strategies as supporting tools that exist at all levels of the hierarchy. The three (3) levels of strategy hierarchy are interrelated through a specific dual integration, built through a vertical orientation - top-down and bottom-up interactions. Top-down implies Operations strategy has a vertical relationship with corporate and business strategy, that might come down from the levels above. Bottom-up implies operation strategy comes from within operations to improve resources and capabilities, and informs business and corporate strategy decisions. All the levels in the hierarchy have horizontal relationships with functional strategy.
Strategic Engine Component Model
The Strategic Engine component model is a 3-level hierarchy goals model of corporate, business and operations strategy layers of organization strategy with reinforcing relationships to functional strategies at each level in the hierarchy. The organization strategy goals model is an intentional goals model of the intended/deliberate corporate, business and operations strategy layers The goals model integrates the strategy hierarchy of the different levels of corporate, business and operations strategy levels into a coherent organization system model that aligns with the organization system purpose - defined by mission goals.
The unique combination of top-down (CS and BS) with bottom-up (OS and BS) approaches ensures the right fit of organization strategy levels.
The strategic engine model is useful for managers seeking to safeguard the competitive advantage of their companies. Competitive advantage refers to factors that allow a company to produce goods or services better or more cheaply than its rivals. Sustainable competitive advantage is what makes an organization's products or services more desirable to customers than that of any of its rivals. Most managers in organizations have difficulty developing valid strategy statements without the determination process degenerating into solemn recording of platitudes, and trappings of strategy which is useless for either clarification of the direction or achievement of consensus among managers.
Strategic Engine Visualization
Strategic engine visualization allows us to visualize strategy as a system of decisions - a layered hierarchical set of decisions across corporate business and operations strategy levels. Visualizing the strategic engine involves creating intentional and logical goals model of the strategic engine's layered hierarchy.
Strategy visualization provides the methods to support managers in envisioning their organization's strategy. Organization strategy is modeled as a layered hierarchy of a system of strategic decisions. The layers of the hierarchy include corporate, business, and operations strategy levels, and the system is visualized through the Strategic Engine model. A strategic engine is company specific, customized to the company's own situation and performance objectives.
The Strategic Engine is an abstraction of the concept of strategy as a system of decisions organized around a layered model comprising a 3-level hierarchy of corporate strategy, business strategy, and operations strategy with the rest of the other functional strategies as supporting tools that exist at all levels of the hierarchy. The three (3) levels of strategy hierarchy are interrelated through a specific dual integration, built through a vertical orientation - top-down and bottom-up interactions. Top-down implies Operations strategy has a vertical relationship with corporate and business strategy, that might come down from the levels above. Bottom-up implies operation strategy comes from within operations to improve resources and capabilities, and informs business and corporate strategy decisions. All the levels in the hierarchy have horizontal relationships with functional strategy.
Strategic Engine Component Model
The Strategic Engine component model is a 3-level hierarchy goals model of corporate, business and operations strategy layers of organization strategy with reinforcing relationships to functional strategies at each level in the hierarchy. The organization strategy goals model is an intentional goals model of the intended/deliberate corporate, business and operations strategy layers The goals model integrates the strategy hierarchy of the different levels of corporate, business and operations strategy levels into a coherent organization system model that aligns with the organization system purpose - defined by mission goals.
- Corporate Strategy (CS) - Corporate strategy revolves around the objectives of the organization, core competencies, and gaining competitive advantage in terms of products and/or services offered, target markets and customer segmentation. It involves choices about the scope of the organization's products, the vertical and geographic coverage, and identifies investment priorities for the businesses based on current market positions.
- Business Strategy (BS) - Business strategy is concerned with creating competitive advantage through differentiation or cost leadership in specific market and customer segments. The point of interest is on how the organization competes within a specific industry/market as constrained by competitive priorities (established through the SWOT analysis). It involves decisions and choices regarding competitors, and the nature of competition and competitive advantage. And formulating responses to changes in the industry, crafting competitive moves and market approaches leading to sustainable competitive advantage by building valuable, rare and hard to copy competencies and capabilities.
- Operations Strategy (OS) - Operations strategy is the system of decisions that are aimed at shaping both the long-term capabilities of operations (irrespective of their type), and their contribution to overall strategy achievement. It consists of a series of decisions that organizations make in order to implement competitive business strategies. Operations strategy supports in linking operational-level decisions, both short-term and long-term, to corporate strategy.
The unique combination of top-down (CS and BS) with bottom-up (OS and BS) approaches ensures the right fit of organization strategy levels.
The strategic engine model is useful for managers seeking to safeguard the competitive advantage of their companies. Competitive advantage refers to factors that allow a company to produce goods or services better or more cheaply than its rivals. Sustainable competitive advantage is what makes an organization's products or services more desirable to customers than that of any of its rivals. Most managers in organizations have difficulty developing valid strategy statements without the determination process degenerating into solemn recording of platitudes, and trappings of strategy which is useless for either clarification of the direction or achievement of consensus among managers.
Strategic Engine Visualization
Strategic engine visualization allows us to visualize strategy as a system of decisions - a layered hierarchical set of decisions across corporate business and operations strategy levels. Visualizing the strategic engine involves creating intentional and logical goals model of the strategic engine's layered hierarchy.
The strategy concept at each layer is the means of achieving the results defined by the strategic goals for that layer e.g., corporate strategy, business strategy, and functional strategy respectively. The strategic goals correspond to the various levels/layers at which strategy concept exists in the organization i.e., corporate, business, and functional levels. The strategic goals define expected outcomes or results the organization wants to change to better meet the organization's mission. These goals are assigned to organization decision rights and functional structures resulting from the operations strategy infrastructure design.
Strategy Implementation Visualization
Strategy implementation is concerned with investment decisions and plans to build a capable organization that can make the formulated strategy work as intended. Strategy Implementation involves translating the chosen strategic options into action plans and operations plans that guide the successful execution of the chosen strategy.
Visualizing Strategy Implementation
Visualizing strategy implementation entails visualization of the gaps in the organization's strategic capability as defined by the Operating Model, and the initiatives required to strengthen its organizational capabilities and resources enabling it to close the gap and to better perform its strategic management functions. The operating model is an abstract representation of how an organization operates across process, organization structure, partner network, technology domains in order to deliver value defined by the organization in scope. Operating models facilitate the conversion of strategy to results. The Operating Model serves as a blueprint for how resources are organized and operated to get critical work done.
Strategy implementation is concerned with investment decisions and plans to build a capable organization that can make the formulated strategy work as intended. Strategy Implementation involves translating the chosen strategic options into action plans and operations plans that guide the successful execution of the chosen strategy.
Visualizing Strategy Implementation
Visualizing strategy implementation entails visualization of the gaps in the organization's strategic capability as defined by the Operating Model, and the initiatives required to strengthen its organizational capabilities and resources enabling it to close the gap and to better perform its strategic management functions. The operating model is an abstract representation of how an organization operates across process, organization structure, partner network, technology domains in order to deliver value defined by the organization in scope. Operating models facilitate the conversion of strategy to results. The Operating Model serves as a blueprint for how resources are organized and operated to get critical work done.
Visualizing Organization Capabilities
[TBD]
Strategy Execution Visualization
Execution is a function of the strategic management process, and it occurs within the context of strategy implementation. It is concerned with managing initiatives - this is where strategy is translated into practice or remains on paper - and building adequate organization strategic capability. Strategy execution is about how decisions take place within an organizational context of power, culture, leadership and ability to manage change,as represented by the Operating Model. This requires the ability to understand and manage the interactions among those execution decisions and contextual forces. The execution flow involves both top down flows of decisions and actions from corporate strategy decisions through business strategy decisions to strategy implementation decision and actions (participation and communication down and across operating units), and bottom up flows of participation and communication information up the organization.
Strategy Execution Model
Strategy execution is the continuous process of closing the gap between where the company is, and what the strategy calls for. Bringing the strategy "execution gap" may require addressing the shortcomings in the implementation and/or flawed execution plans. Technically, a strategy can never actually be fully implemented because every thing that was necessarily assumed when formulating the strategy - about customers, technology, regulation, labor market, competitors, and so on - is in a constant state of flux. Strategy execution depends on each member of the organization's daily tasks and decisions, so its vital to ensure everyone understands not only the broader strategic goals, but how their individual responsibilities make achieving them possible.
The Strategy Execution Model is an open, social systems model that captures the organization as system elements, their interactions (dynamic and static), and a state-space that captures the dynamic behavior and system properties. In the traditional strategy execution, "Plan-then-Do" approach, the organization creates its best forecast of the future market and competitive landscape. Leadership then specifies a plan that it believes will position the company to win in this predicted future. This approach is prone to failure because in today's fast-paced world, the "cone of uncertainty" surrounding future market and competitive conditions is too great for companies to prescribe every element of a multi-year strategy. An agile, test-and-learn approach is better suited to today's tumultuous environment. Successful strategy development and execution concerns balancing gut feel with in-depth situational analysis so that action is not delayed, but also focus on areas of maximum impact.
Successful execution involves decisions about changes to strategy, structure, capabilities (organizational and individuals), and incentives, and involves coordination, information sharing, and controls that results in an organization's actual strategy.
[TBD]
Strategic capability refers to the organization's ability to harness all its skills, organizational capabilities, and resources in order to gain competitive advantage, and thus survive and increase its value over time. The focus of strategic capability is on the organization's assets, resources, market position in projecting how well it will be able to employ strategies in the future.
[TBD]
[TBD]
Organizations must acquire the necessary organizational capabilities to better respond to changing environments in order to attain sustainable growth and profitability. Those required organizational capabilities include: accountability, leadership, coordination, strategic unity, and efficiency, in addition to talent.
Strategy Execution System Model
Effective strategy execution requires a systematic approach to exposing reality and acting on it. The organization's actions involve decisions made every day by employees acting, according to the information they have and their own self-interest, within the context of strategy implementation, and activities undertaken at all levels in the organization - top management, middle management, and front-line managers and workers - to turn implemented strategy into commercial/social success.
The execution system is a joint configuration of resources and processes with resulting competencies that facilitate effective and efficient change management in evolving the organization. Execution management involves integration of the series of decisions/actions that take place over time, and inextricably changes the organization and its relationship with its environments. The change may be planned or emergent.
Closing the strategy gap in organizations in today's world involves bridging the chasm that exists between great strategy, great execution, and great performance.
[TBD]
Value Creating Strategy and Competitive Advantage
The competitive ability of a firm may be based on its capability to capitalize on opportunities and mitigate threats form external environment factors (top-down) or leverage its strengths while managing its weaknesses (bottom-up) approaches to create sustainable competitive advantage and add value to the organization.
Process Model
The three (3) levels of strategy hierarchy are interrelated through a specific dual integration, built through a vertical orientation - top-down and bottom-up interactions.
[TBD]
Execution is a function of the strategic management process, and it occurs within the context of strategy implementation. It is concerned with managing initiatives - this is where strategy is translated into practice or remains on paper - and building adequate organization strategic capability. Strategy execution is about how decisions take place within an organizational context of power, culture, leadership and ability to manage change,as represented by the Operating Model. This requires the ability to understand and manage the interactions among those execution decisions and contextual forces. The execution flow involves both top down flows of decisions and actions from corporate strategy decisions through business strategy decisions to strategy implementation decision and actions (participation and communication down and across operating units), and bottom up flows of participation and communication information up the organization.
Strategy Execution Model
Strategy execution is the continuous process of closing the gap between where the company is, and what the strategy calls for. Bringing the strategy "execution gap" may require addressing the shortcomings in the implementation and/or flawed execution plans. Technically, a strategy can never actually be fully implemented because every thing that was necessarily assumed when formulating the strategy - about customers, technology, regulation, labor market, competitors, and so on - is in a constant state of flux. Strategy execution depends on each member of the organization's daily tasks and decisions, so its vital to ensure everyone understands not only the broader strategic goals, but how their individual responsibilities make achieving them possible.
The Strategy Execution Model is an open, social systems model that captures the organization as system elements, their interactions (dynamic and static), and a state-space that captures the dynamic behavior and system properties. In the traditional strategy execution, "Plan-then-Do" approach, the organization creates its best forecast of the future market and competitive landscape. Leadership then specifies a plan that it believes will position the company to win in this predicted future. This approach is prone to failure because in today's fast-paced world, the "cone of uncertainty" surrounding future market and competitive conditions is too great for companies to prescribe every element of a multi-year strategy. An agile, test-and-learn approach is better suited to today's tumultuous environment. Successful strategy development and execution concerns balancing gut feel with in-depth situational analysis so that action is not delayed, but also focus on areas of maximum impact.
Successful execution involves decisions about changes to strategy, structure, capabilities (organizational and individuals), and incentives, and involves coordination, information sharing, and controls that results in an organization's actual strategy.
[TBD]
Strategic capability refers to the organization's ability to harness all its skills, organizational capabilities, and resources in order to gain competitive advantage, and thus survive and increase its value over time. The focus of strategic capability is on the organization's assets, resources, market position in projecting how well it will be able to employ strategies in the future.
[TBD]
[TBD]
Organizations must acquire the necessary organizational capabilities to better respond to changing environments in order to attain sustainable growth and profitability. Those required organizational capabilities include: accountability, leadership, coordination, strategic unity, and efficiency, in addition to talent.
Strategy Execution System Model
Effective strategy execution requires a systematic approach to exposing reality and acting on it. The organization's actions involve decisions made every day by employees acting, according to the information they have and their own self-interest, within the context of strategy implementation, and activities undertaken at all levels in the organization - top management, middle management, and front-line managers and workers - to turn implemented strategy into commercial/social success.
The execution system is a joint configuration of resources and processes with resulting competencies that facilitate effective and efficient change management in evolving the organization. Execution management involves integration of the series of decisions/actions that take place over time, and inextricably changes the organization and its relationship with its environments. The change may be planned or emergent.
Closing the strategy gap in organizations in today's world involves bridging the chasm that exists between great strategy, great execution, and great performance.
[TBD]
Value Creating Strategy and Competitive Advantage
The competitive ability of a firm may be based on its capability to capitalize on opportunities and mitigate threats form external environment factors (top-down) or leverage its strengths while managing its weaknesses (bottom-up) approaches to create sustainable competitive advantage and add value to the organization.
- Top-Down: A top-down approach (perspective) to operations strategy design involves senior management formally defining the mission, then progressively expanding this to give the corporate, business, and functional strategies. Once organizational purpose/mission, corporate strategy, business and competitive strategy, and values are clear, the organization can be structured in such a way that roles and functions are clearly defined and differentiated, lines of communications and accountability untangled, and decision-making procedures transparent and functional. Operations strategy is the collective concrete actions chosen, mandated, or stimulated by corporate strategy
- Bottoms-Up: In the bottoms-up perspective, the actual business and corporate strategy eventually emerges over time from experiences in operations as a result of the sum of the practical decisions made, and actions taken by managers in continually responding to actual conditions and problems as they arise in the organization.
- Market Requirements - Businesses must analyze markets before they can develop an operations strategy. They need to agree on the current and future markets in which to compete, and determine the known or anticipated order-winners and qualifiers within these markets.
- Operations Resources - []
Process Model
The three (3) levels of strategy hierarchy are interrelated through a specific dual integration, built through a vertical orientation - top-down and bottom-up interactions.
- Top-down Perspective - Top-down implies Operations strategy has a vertical relationship with corporate and business strategy, that might come down from the three levels. The whole process begins with establishing Corporate Strategy (CS) goals. Posing questions about business portfolios and investment decisions, such as "Where?", "How much?", and "What kind of?". Then it follows the business strategy (BS), identifying how to compete in specific markets and industries, trying to find coherent answer to a generic question "How?", and with which generic strategy to compete. And finally the operations strategy (OS) comes, that should provide in with that should provide the right answer to a specific question "How?", ("Which way to compete?"), to deliver the highest result from the sum of of the basic performance objectives - speed, quality, dependability and flexibility ar appropriate cost level.
- Bottom-up Perspective - Bottom-up implies operation strategy comes from within operations to improve resources and capabilities. Operations strategy tries to improve these objectives, supports and reinforces the final outcome.of Business Strategy (BS) to achieve sustainable competitive advantage that in turn, contributes to achieve superior economic returns on a corporate level. Based on results of business strategy (BS), executive managers decide on entering/leaving markets, enlarging/shortening the value chains, or pursuing business diversification. Once the dyadic flow of information is completed, further refinement of the whole process might start again, based on the outcome of this process.
[TBD]
Visualizing Operations Engine
[TBD]
Businesses typically have a mix of production of goods and services that collectively define the value proposition offered to customers. Decisions about the product-mix are usually supported by analytical methods such as Linear Programming (LP). These decisions are usually made so that the market demand is met and the firm profit is maximized. However, the complexity, and the dynamic stochastic nature of real-world production and service delivery systems often lead to goods and service production and delivery systems effective capacity levels that are different from those determined by analytical methods. Analytical methods also have problems coping with the dynamic changes in the product-mix which usually requires enhancing system parameters and/or reconfiguration of the operations systems. Business operations constitute many processes including materials acquisition and inventory management, manufacturing/production, product delivery, service delivery, etc.
Capacity utilization impacts business performance. Capacity analytics helps to determine whether the business is running at optimum capacity utilization. It can help spot if the resources are being under utilized or if the employees are working over-capacity. It can also help the business to determine how much and when to increase capacity.
Operations System
Operations management from an operational perspective focuses on how to best use the organizations production resources, capabilities and competencies to create and deliver value to customers.
Operations Systems Simulation-Based Analysis
Analyzing Operations Engine performance and effective capacity based on process simulation techniques to provide information on resource utilization (labor and equipment and storage), production process performance in delivering products and/or services to customers that informs management decisions on optimum effective capacity for an Operations System configuration for a given product-mix.
The Operations Engine production process refers to any activity or group of activities that take one or more inputs, transforms and adds value to them, and provides outputs for customers or clients. Typical simulation analyses focus on experiments to help understand impact of changes at:
Process simulation provides participants, decision-makers, and stakeholders with understanding of interplay of process concepts and elements, and constraints, as well as insight into the influence on future performance (efficiency and effectiveness) of organization processes. The simulation experiment is driven by customer events and operations decisions and choices with respect to Operations System's configuration and system elements such as processes, labor, equipment, and facility such that the resulting competencies are aligned with and support the organization's mission.
Simulation of the Operations System design for the different types of transformation i.e., manufacturing, transport, supply and service helps managers and key operations staff gain insight into the "real world" situations facing the company and the factors (i.e., changes in demand, changes in product-mix, etc.) that influence the capacity and resource utilization decisions relative to the different types of transformation i.e., manufacturing, transport, supply and service.
Operations Management
Operations Management involves administrative and operational decisions focused on operational control of the organization's capacity to efficiently carry out the tasks set forth by strategic and middle management decisions and decision-makers. Operations management focuses on how to best use the organizations production resources, capabilities and competencies to create and deliver value to customers. Operations system is the joint configuration of resources and processes with the resulting competencies ...
Operations management focuses on the control of the means - processes and resources - by which organizations create and deliver value. It involves structured decision-making, concerned with how efficiently and effectively resources are utilized and how well operations units are performing. Operations management takes place within the context of broad policies and objectives set out by strategic decision-making.
Operations Management involves administrative and strategic decision-making processes focused on Operations Strategy design, Operations Systems design, operations process design and operations control systems design.
[TBD]
Businesses typically have a mix of production of goods and services that collectively define the value proposition offered to customers. Decisions about the product-mix are usually supported by analytical methods such as Linear Programming (LP). These decisions are usually made so that the market demand is met and the firm profit is maximized. However, the complexity, and the dynamic stochastic nature of real-world production and service delivery systems often lead to goods and service production and delivery systems effective capacity levels that are different from those determined by analytical methods. Analytical methods also have problems coping with the dynamic changes in the product-mix which usually requires enhancing system parameters and/or reconfiguration of the operations systems. Business operations constitute many processes including materials acquisition and inventory management, manufacturing/production, product delivery, service delivery, etc.
Capacity utilization impacts business performance. Capacity analytics helps to determine whether the business is running at optimum capacity utilization. It can help spot if the resources are being under utilized or if the employees are working over-capacity. It can also help the business to determine how much and when to increase capacity.
Operations System
Operations management from an operational perspective focuses on how to best use the organizations production resources, capabilities and competencies to create and deliver value to customers.
Operations Systems Simulation-Based Analysis
Analyzing Operations Engine performance and effective capacity based on process simulation techniques to provide information on resource utilization (labor and equipment and storage), production process performance in delivering products and/or services to customers that informs management decisions on optimum effective capacity for an Operations System configuration for a given product-mix.
The Operations Engine production process refers to any activity or group of activities that take one or more inputs, transforms and adds value to them, and provides outputs for customers or clients. Typical simulation analyses focus on experiments to help understand impact of changes at:
- The resource level (e.g., what if the organization bought a faster check sorter?),
- The process structure level (e.g., what if the organization allowed existing customers to skip the credit check activity?), or
- The process context level (e.g., what if the customer demand increased dramatically because of marketing campaign?).
Process simulation provides participants, decision-makers, and stakeholders with understanding of interplay of process concepts and elements, and constraints, as well as insight into the influence on future performance (efficiency and effectiveness) of organization processes. The simulation experiment is driven by customer events and operations decisions and choices with respect to Operations System's configuration and system elements such as processes, labor, equipment, and facility such that the resulting competencies are aligned with and support the organization's mission.
Simulation of the Operations System design for the different types of transformation i.e., manufacturing, transport, supply and service helps managers and key operations staff gain insight into the "real world" situations facing the company and the factors (i.e., changes in demand, changes in product-mix, etc.) that influence the capacity and resource utilization decisions relative to the different types of transformation i.e., manufacturing, transport, supply and service.
Operations Management
Operations Management involves administrative and operational decisions focused on operational control of the organization's capacity to efficiently carry out the tasks set forth by strategic and middle management decisions and decision-makers. Operations management focuses on how to best use the organizations production resources, capabilities and competencies to create and deliver value to customers. Operations system is the joint configuration of resources and processes with the resulting competencies ...
Operations management focuses on the control of the means - processes and resources - by which organizations create and deliver value. It involves structured decision-making, concerned with how efficiently and effectively resources are utilized and how well operations units are performing. Operations management takes place within the context of broad policies and objectives set out by strategic decision-making.
Operations Management involves administrative and strategic decision-making processes focused on Operations Strategy design, Operations Systems design, operations process design and operations control systems design.
- Operations Strategy design decisions are concerned with choices and commitment to organization operations infrastructure, operations structure design.
- Operations System for the organization's production unit - This is the joint configuration of resources and processes with the resulting competencies ...
- Tactical Decisions - Tactically, Operations Management focuses on utilizing the Operations System to carefully manage the processes and resources, of the organization to produce and distribute products and services to customers which in turn realize strategic decisions to capitalize on opportunities.
- Operational Control Decisions - Operational control decisions involve determining which organization units will carry out the tasks, establishing criteria for completion, resource utilization, and evaluating outputs. Operations decisions, unlike strategic decisions, are repetitive, routine and involve definite procedure for handling so they do not have to be treated each time as if they were new.
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