Levels of Operations Strategy



Levels of Operations Strategy

Corporate Level Strategy – This operations strategy functions at the highest or corporate level of an organization or company and it entails the provision of long-range guidance for the entire company or organization. Examples of areas where the operations strategy at this level provides salient guidance include location of the company facilities, as well as, definition and description of the markets targeted by the company.

Business Level Strategy – The operations strategy at this level is concerned with the products and services that should be offered by a company or organization in the market defined at the corporate level above, for instance, varieties and type of products.

Functional Level Strategy – This is the level of operations strategy whereby functions of the business or company such as marketing, operations and finance make long-range plans which espouse the competitive advantage of the company. Examples of the long range plans include daily plans, weekly schedules and budgets.

Question 2 Levels of Operations Strategy

Characteristics of operations that utilize fixed position layout

When choosing a process type, organizations look at whether it can meet both market needs in terms of variety and volume requirements of customers, satisfy the technical needs so that resources are configured to deliver a product or service and the process type is strategic, that is, it formulates a constraint around which the organization can compete.

In Fixed Position Layout, the focus is on scheduling and coordination of resources so as to ensure that they are available in the required quantities at the required time. Key characteristics of fixed position layout include:

  • The products or consumers do not move since the resources are arranged around them.
  • Staff may have to complete a high variety of tasks.
  • Fixed position layout has very high product and mix flexibility, but this is also accompanied by very high unit cost.
  • A critical issue for operations under the fixed position layout is the scheduling and coordination of activities over time.

Question 3 Levels of Operations Strategy

How CIM could provide advantage in organizations

Computer-Integrated Manufacture refers to a form of business operation whereby all technologies in an organization or company are integrated using a computer network and database system resulting in an automated system. As such, in a fully integrated system, the areas of testing, design, fabrication, assembly, material handling and inspection are all automated and integrated using technology. CIM has various advantages such as:

  • Improving production efficient through the integration of production, planning and material supply systems so that the production process can occur in a well-organized way and take shortest possible waiting time, with machine use greatly enhanced.
  • Reducing inventory and work-in-progress in an organization through the use of an ERP or MRPII system.
  • Improving product quality – The integration of the organization’s business operations, production processes and design processes will help in improving product quality.
  • Reducing cost of business operation
  • Standardizing processes which can help reduce errors caused by random and uncontrolled operations in the organization and streamline processes.
  • Fostering market response ability – CIM replaces the conventional pyramid organization structure with a flat structure that can improve the response speed of the organization to user requirements and market change.