Operational Strategies

OPEATION/PRODUCTION STRATEGIES BY-Nirmal kuma sahoo

IMPLEMENTATION OF STRATEGY INVOLVES A WIDE RANAGE OF POLICY DECISION TO BE MADE INCLUDING THOSE RELATING TO THE FUNCTIONAL AREAS. THE PURPOSE OF POLICY AS A GUIDE TO DECISION MAKING IS TO SPELL-OUT AND CLARIFY STRATEGY, TO PROVIDE A BASIC FOR INTERPRETING STRATEGY WHICH IS USUALY STATED IN GENERAL TERMS.

PRODUCTION POLICIES THE DECISION VARIABLES WITH RESPECT TO PRODUCTION OF GOODS(MANUFACTURING) AND PROVISION OF SERVICES(TRANSPORTATION, RETAILING,ETC) MANUFACTURING AS WELL SRVICE ORGANISATION LIKE HAVE TO DECIDE ON POLICIES BEARING ON CAPACITY, TECHNOLOGY, PURCHASING AND SOON. FOR RETAILER – RETAILER MAY DECIDE TO BUY PROVISION IN BULK AND SELL SMALL PACKS MADE AT THEIR AND OR PACKING MAY BE DONE BY WHOLE SELLER AND MADE AVAILABLE TO THE RETAILERS TO SALE.

FOR A PRODUCER PRODUCER MAY DECIDE TO UNDERTAKE ONLY ASSEMBLY OF PARTS PRODUCED FROM DIFFERENT MANUFACTURER SPECIALISED PARTS, PRODUCE OTHER , AND DO THE ASSEMBLY. THUS PRODUCTION OR PURCHASING OR PROCESSING FUNCTION MAY BE INTERRELATED IN VARIOUS WAYS.

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KEY ISSUES IN PRODUCTION PROCESS THE MAJOR ISSUES IN PRODUCTION POLICY MAY BE SAID TO BE INCLUDE THE FOLLOWING: 1. INVOLVEMENT OF THE FIRM IN THE PRODUCTION PROCESS 2. CHOICE OF THE PRODUCTION PROCESS 3. MAINTENANCE/ REPLACEMENT OF THE EXISTING PRODUCTION FACILITIES.

INVOLVEMENT IN PRODUCTION POLICY THE RELEVANT QUESTIONS TO BE ASKED IS N THIS CONNECTION1. SHOULD THE FIRM MANUFACTURE THE PRODUCT THAT IT INTEND TO SELL OR BUY ? 2. SHOULD THE ACTIVITY CONSIST OF ASSEMBLING PURCHASED COMPONENTS OR MAKING THE COMPONENTS AS WELL ? 3. SHOULD THE FIRM MAKE OR BUY THE RAW MATERIALS FOR THE COMPONENT ?

FACTORS GOVERNING INTEGRATION OF PRODUCTION ACTIVITIES 1. COORDINATION OF ACTIVITIES 2. SAVING IN COSTS 3. SAFEGUARD AGAINST UNCERTAINTY OR RESTRICTED SUPPLY. 4. LIMITED FLEXIBILITY. 5. OPTIMUM SCALE AND ECONOMY OF PRODUCTION. 6. FINANCIAL STRENGTH AND CAPABILITY. 7. LIMITATION OF MANAGEMENT CAPABILITY.

B.

CHOICE OF THE PRODUCTION PROESS 1. TECHNOLOGY TO BE USED. 2. DIVISION OF LABOUR. 3. MECHANIZATION OF OPERATIONS 4. SIZE AND LOCATION OF PLANTS.

TECHONOLOGY I) LIFECYCLE. II) TECHNOLOGY PLANNING. III) GOVT. POLICY

2.DIVISION OF LABOUR - THE VOLUME OF PRODUCTION OF PRODUCTION & EXTENT OF STANDARDIZATION OF PRODUCTS DETERMINE WHETHER AND HOW FAR LINE OPERATIONS COULD BE SUB-DIVIDED AND ENTRUSTED TO DIFFERENT OPERATION. - DIVISION OF LABORE IS DONE IN CASE OF LARGE SCALE MANUFACTURING. 3.POLICY ON MECHANISATION AND AUTOMATION. 4. SIZE and LOCATION OF PRODUCTION

PROCEDURE TO BE FOLLOWED BY PURCHASING DEPMENT. 1. RECIVING PURCHASE REQUSITION. 2.EXPLORING OF MATERIALS SUPPLY AND SUITABLE MATERIAL. 3.PREPARATION AND EXECUTION PURCHASE ORDER. 4. RECEIPT &INSPECTION OF MATERIAL. 5.CHECKING PASSING OF BILL FOR PAYMENT.

C. PRODUCTION CAPACITY