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Strategic Decision in Operations Management

Strategic decisions in operations management are decisions that have long-term influence and are unlikely to change in the short-term. They include decisions around service and product design, quality management, capacity, location, layout, human resources, supply chain management, inventory management, and scheduling. The major operations management decision areas are processes, capacity, inventory, workforce, and quality.

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Ayushi Singh. 214 - B
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169 views

Strategic Decision in Operations Management

Strategic decisions in operations management are decisions that have long-term influence and are unlikely to change in the short-term. They include decisions around service and product design, quality management, capacity, location, layout, human resources, supply chain management, inventory management, and scheduling. The major operations management decision areas are processes, capacity, inventory, workforce, and quality.

Uploaded by

Ayushi Singh. 214 - B
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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strategic decision in

operations management
BBA-(2019-22)
Prof. Rajeev Sinha
Definition
 Strategic decisions are the decisions that
are concerned with whole environment in
which the firm operates,

 the entire resources and the people who


form the company and the interface between
the two.
What do you mean by strategic
decision?

 Strategic decisions are those decisions that


have an influence over years, decades, and
even beyond the lifetime of the project.

 Once a strategic decision is made, it is very


unlikely to be altered in the short term.
What are the different strategic decisions in production management?
 However, operational strategic decisions, which
are mainly 
 service and product design,
 quality management, TQM
 capacity design,
 location,
 layout design,
 human resources and job design,
 supply-chain management,
 inventory management, JIT –Just in Time
 scheduling, and maintenance (Heizer & Render,

2011), are required for all managers in their 


What are the major operations management decisions?

 Five Decision Areas

However, one can analyze the operations


function using 5 major decision
responsibilities: process, capacity, inventory,
work force, and quality. Process -- Make
decisions about the physical production
process, technology, and layout.
What is strategy in operation management?

 “Operations strategy is the total pattern of


decisions which shape the long-term
capabilities of any type of operations and
their contribution to the overall strategy,”
they write. Technology and business models
are rapidly changing, so businesses must
keep pace and look to the future.
What is an example of a strategic decision?

 Examples of strategic decisions are the layout


of the storage area (i.e., shape, number of
warehouse blocks and depot location), as well
as the selection of storage systems, in
particular the level of automation and the
material handling equipment to retrieve
items.
What are the characteristics of strategic decision?

 Strategic decision making (SOM) is of great


and growing importance because of
five characteristics of strategic
decisions (SOs): (a) they are usually big, risky,
and hard-to- reverse, with significant long-
term effects, (b) they are the bridge between
deliberate and emergent strategy, (c) they can
be a major source of .
 What are the four steps of strategic
management process?
 The four phases of strategic management

are formulation, implementation, evaluation


and modification.

What are the four major decision areas in operation


management?
 Design of Goods and Services.
 Quality Management.
 Process and Capacity Design.
 Location Strategy.
 Layout Design and Strategy.
 Human Resources and Job Design.
 Supply Chain Management.
 Inventory Management.
What are the four major decision
areas in operation management?
 There are four major decision areas in supply
chain management: 1) location,
2) production, 3) inventory, and 4)
transportation (distribution), and there are
both strategic and operational elements in
each of these decision areas.
What is Product & Service Design?

 Products and services fuel your business with the revenue


they generate. Because they are at the heart of your business
operations, it’s important to take a calculated, strategic
approach to designing your products and services.
 Service design is the coordination and combination of
people, communication, and material components to create
quality service. Product design is the combination of
manufacturing capabilities with product and business
knowledge to convert ideas into physical and usable objects.
 Physical Product design is the combination of manufacturing
capabilities with product and business knowledge to convert
ideas into physical and usable objects. 
  

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