Production or service organization's operational efficiency with its operational strategy.

Scenario Imagine that you are the vice president of operations at a production or service organization. You have noticed that your organization's current operations strategy is not supporting the challenges the organization is presently facing. In order to maintain a competitive edge, you must address these challenges with your chief executive officer immediately. assume the role of vice president of operations at a production or service organization in the assignments throughout this course. Select an existing production organization. Analyze the organization's current vision, mission, business strategy, operation strategy, supply chain, total quality management, just-in-time philosophy, forecasting method, statistical technique, facility location, work design, project life cycle, and project management. Write a 3-5 page paper in which you: Evaluate key elements of the selected production or service organization's operational efficiency with its operational strategy. Determine three tasks that do not align with the operational strategy. Determine the weaknesses that are evident in each task. Formulate a new operations strategy for the selected organization based on the four competitive priorities (cost, quality, time, and flexibility). Analyze both the structure of the competitive priorities and the infrastructure of the production process. Develop three new enablers that are aligned with the long-term plan of the selected organization. Evaluate three pros and three cons of the new enablers.

Sample Solution

Production Organization: Toyota Motor Corporation

Evaluation of Operational Efficiency

Toyota Motor Corporation (TMC) is known for its operational efficiency. The company has a long history of continuous improvement, and its production system is widely considered to be one of the best in the world.

However, even the best companies can find that their operational efficiency is not aligned with their operational strategy. In the case of TMC, the company's focus on cost leadership has led to a number of tasks that do not align with its operational strategy of producing high-quality vehicles.

Full Answer Section

Tasks that Do Not Align with Operational Strategy

Overreliance on suppliers:Â TMC has a long-standing policy of working with a small number of suppliers. This policy has helped the company to reduce costs, but it has also made the company more vulnerable to disruptions in the supply chain. For example, the 2011 Tohoku earthquake and tsunami caused significant disruptions to TMC's supply chain, leading to a major production slowdown.
Resistance to change:Â TMC is a very traditional company, and it can be slow to adopt new technologies. For example, the company was slow to adopt robots in its manufacturing plants. This resistance to change can make it difficult for the company to respond quickly to changes in the market.
Focus on short-term results:Â TMC is known for its focus on short-term results. This focus can lead to decisions that are not in the best interests of the company's long-term goals. For example, the company's decision to increase production in the late 1990s led to a buildup of inventory, which the company had to sell at a loss.

Weaknesses Evident in Each Task

Overreliance on suppliers:Â Overreliance on suppliers can lead to disruptions in the supply chain, which can impact production and profitability.
Resistance to change:Â Resistance to change can make it difficult for a company to respond quickly to changes in the market, which can lead to a loss of competitive advantage.
Focus on short-term results:Â A focus on short-term results can lead to decisions that are not in the best interests of the company's long-term goals, which can impact the company's sustainability.

New Operations Strategy

Based on the four competitive priorities of cost, quality, time, and flexibility, a new operations strategy for TMC could focus on the following:

Cost:Â TMC should continue to focus on cost leadership, but it should also be willing to invest in new technologies that can improve efficiency.
Quality:Â TMC should maintain its commitment to high quality, but it should also be willing to be more flexible in its production process in order to meet the needs of customers.
Time:Â TMC should focus on reducing lead times and improving responsiveness to customer demand.
Flexibility:Â TMC should be more flexible in its production process in order to be able to respond quickly to changes in the market.

New Enablers

Three new enablers that are aligned with the long-term plan of TMC could be:

Advanced manufacturing technologies:Â TMC should invest in advanced manufacturing technologies, such as robotics and artificial intelligence, to improve efficiency and flexibility.
Data-driven decision making:Â TMC should collect and analyze data from its production process in order to make better decisions about how to improve efficiency and quality.
Globalized supply chain:Â TMC should diversify its supply chain in order to reduce its reliance on any one supplier.

Pros and Cons of New Enablers

Advanced manufacturing technologies

Pros:Â Can improve efficiency, flexibility, and quality.
Cons:Â Can be expensive to implement and maintain.

Data-driven decision making

Pros:Â Can help to improve decision making and identify areas for improvement.
Cons:Â Can be difficult to collect and analyze data accurately.

Globalized supply chain

Pros:Â Can reduce risk and improve responsiveness to customer demand.
Cons:Â Can be more complex to manage.

Conclusion

By aligning its operational efficiency with its operational strategy, TMC can improve its competitive position and achieve its long-term goals.

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