Reverse Logistics
As Supply Chain Activities are evolving and partnering changes in business models, the focus and activities are not restricted to the management of raw materials and finished goods from point of origin from the vendors to plants and further on to the end customers. There is another extension to Supply Chain Process called as Reverse […]
Is Foreign Investment Beneficial to the Developing Countries ?
Types of Foreign Investment and its Implications for Developing Countries With the opening of the economies of the world, there has been a concomitant increase in the flow of investment from the west to the east. As capital from the west started flowing into the developing countries in search of better yields, these countries are […]
Role of a Project Coach in a Six Sigma Project
The Project Coach is the person concerned who is responsible to make sure that the team understand Six Sigma tools and methodologies. Six Sigma is a complex methodology encompassing multiple stages. There will be different people who will be working at different stages of the Six Sigma project. All of them do not need to […]
BPI Project Walk Through – Understanding People and Process
Business Process Improvement projects are ideally suited for every business operation, especially to augment the process efficiency, to implement process changes and to take the business operations to the next level and meet with the Business demands and Customer expectations. For any BPI project to be successful, the leadership and the ownership of the Business […]
DMADV Methodology – Meaning and Rules for Implementing DMADV
DMADV is a six sigma methodology. It is used to design new processes or products where none exist and get it right in the first time. This is a part of the DFSS “Design For Six Sigma” concepts which place focus on creating processes right the first time. The focus of DMADV is on quantifying […]
It is very important for an organization to have well defined objective. A well-defined objective facilitates development of strategies and policy thereby creating value for customers.
Operational strategy is essential to achieve operational goals set by organization in alignment with overall objective of the company. Operational strategy is design to achieve business effectiveness or competitive advantage.
Operational strategy is planning process which aligns the following:
In this global competitive age organization goal tend to change from time to time therefore operations strategy as a consequence has also be dynamic in nature. A regular SWOT analysis ensures that the organization is able to maintain competitive advantage and business leadership.
For success of organizational strategic objective, strategic planning has to trickle down to various function areas of the business. In order to build strategy management process a sequential process as below is followed
Competition Analysis: In this step company evaluates and studies current competition in the market and practices that are followed in the industry for operations and production vis-a-vis company policies
Goal Setting: Next step involves narrowing down the objective towards which the organization wants to move towards.
Strategy Formulation: The next step is breaking down of organizational goals into operations and production strategies.
Implementation: The final step is to convert operations and production strategies into day to day activities like production schedule, product design, quality management etc.
As organizations are always customer-centric, production and operation strategy for organization are built around them
Measurement of formulated operations and production strategy is important to maintain alignment with the organization objectives. In simple terms productivity is defined as sum of total output per employee or per day. Productivity of company is dependent on industry and environmental conditions in which it is operating.
Two essential part of productivity are labor and capital. In scenario of limited resources, optimum and efficient utilization of labor and capital will generate favorable productivity. Productivity measurement also enables company to identify areas which require improvement or special focus. Also productivity provides ready report card to measure status against company’s production objective.
Productivity measurement can be classified in three categories based on the inputs used for calculation. Partial productivity ration of output is compared to one of resource used for example, labor productivity where output is compared to the labor wages.
Total productivity measure takes into consideration sum of all input factors which are used for the output.
In the modern age technology plays an important part in productivity.
Another important factor is the case of production is wastivity. Not 100% of input would be converted to output, there is going to waste during production.
Wastivity is reciprocal of productivity. Classic examples of wastivity are defective products and services which either have to be re-cycle or disposed of completely. Other example is idle capacity of material, man-power equipment etc.
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