OPERATIONS OBJECTIVES AND STRATEGY

Operations objectives are the managerial goals. Operations strategy is the plan by which these goals
are to be achieved.
In any firm engaged in production, the management of its operations will be central to its level of
success. The keys to success lie in achieving two things within the wider context of the business as a
whole:
quality
flexibility.
The level of success the firm will have in achieving quality and flexibility will be determined by a
range of other organisational factors:
organisational objectives
organisational strategies o human resource management
decision making strategies.
The quality of a product is often defined as fitness for purpose. In other words, the
product does have to be the best ever. In the market for high fashion clothing, many young people
are happy to buy clothes that will last for years. The purpose is to wear them two or three times,
then replace them. So the key qualities are good design and relatively low cost manufacture.
If the firm is aiming to sell to the mass market, then the cost of production may be more important
than producing the highest possible quality product. This assumes that there is a trade off between
the quality of a product and the cost of producing it.
This shows a positive relationship between quality and cost. As the quality of a product improves,
the costs of production will also go up. It was believed that workers needed to spend more time
producing each item to make them better, higher quality raw materials had to be used and more
products would be rejected as higher standards were applied.
Recently, however, a different perspective has grown up. The researcher Crosby is credited with the
phrase that quality is free. By this he means that quality can be achieved without
incurring any extra costs. Achieving accurate production first time, every time, will reduce the levels
of wastage and will also increase the total output of the firm. There will be a negative correlation
between costs and quality, in that as quality improves, the cost of producing each unit will foil.
One of the key aims of operations management is to bring about this seemingly ideal situation. This
would involve the firm in:
training workers to get things right first time
changing the corporate culture to one where workers accept that quality is their responsibility

organising the workplace so that each individual worker has the opportunity to use his or her
abilities.
There is also a need for operations management to liaise closely with the firms marketing
function. By defining quality as fitness for purpose, there is a need for the firm to understand what
that purpose will be. In short, product design and development in themselves are only useful if they
fulfil consumer demand. The development of the Sony Walkman met a need from consumers to be
able to listen to cassettes while on the move. Yet Sonys Betamax video recorders failed,
because Sony failed to see that the key to success was the quantity of available software (prerecorded videos) rather than the quality of the hardware.
The achievement of quality is also closely linked to the success of the firms research and
development function. If a firm is to keep ahead of competitors in the development of new products,
it will need to spend time and money on the research and development of new technologies and new
product innovations.
In business, flexibility is usually taken to mean that both the firm and its workforce are willing and
able to change from existing methods of working to new ones.
Flexibility can be achieved by having a workforce that is not resistant to change and is also multiskilled. Producing this state of affairs, however, is not always easy.
SUCCEEDING THROUGH R&D
In 1979, James Dyson, a professional product designer, found that the traditional vacuum cleaner
had an inherent design problem, in that too often the machines bag would become clogged
by dust and dirt, leading to a fall in the effectiveness of the cleaners suction.
After investing 10,000 of his own money (largely from his share in a previously successful
design, the ballbarrow), Dyson spent four years developing over 5,000 prototypes before perfecting
his Dual Cyclone bagless vacuum cleaner.
Since its launch, sales of the Dyson vacuum cleaner have been trebling year on year, and today
production is running at 5,000 cleaners per day.
The major part of Dysons success lay in his ability to develop an idea into a new and high
quality product that successfully met the requirements of his customers.
1 TRAINING
To produce a flexible workforce, each employee must be capable of undertaking different roles in
the workplace. This means they can cover for absent colleagues, or move to different tasks to cater
for changes in demand in the marketplace.
In the past, workers were apprenticed in a particular trade and used those skills throughout the rest
of their working lives. Today, with technology changing rapidly, this approach is unlikely to work.
The techniques and materials used will change and it may be that the task itself becomes outdated
and no longer required. Many craftsmen have found their work being taken over by machines.
Remarkably, Northampton , has got the greatest ration of start up firms in the UK and website
design and print company Tony Powell Graphics (tonyp.co.uk) have shown that traditional printed

promoting and marketing such as flyers and leaflets is still highly effective in advertising a business.
Regardless how cool your business is, in the case local community presence, you won't ever get off
the ground.
Begin at the beginning: Over time, a suitable flyer or leaflet does numerous things: compel the
readers attention, bring about curiosity in your product or service and have the target to call
the phone number, visit your online store and so forth.
Graphics: As to style and design, its far better to embrace a far more traditional solution for
printed media. So many photographs, colors and fonts can weaken your most important product
sales plan. Should you want something striking, have a inciteful trade mark but keep the rest of the
subject matter legible, uncomplicated, and most importantly of all to the point. One single bigger
image is often more dynamic in promoting brand recognition than many smaller graphics. Go for a
striking image to serve as the center point.
Proportions: When thinking about the size of the leaflet or brochure, take into consideration your
distribution approach. With respect to leaflets which are given out individually by promotion and
marketing team members, as an example, A6 paper happens to be worthwhile as it's sufficiently
small enough for any person to put in their back pocket or fold and read later. Nearly all flyers and
leaflets are produced with bright glossy finish offering an outstanding look.
The objectives: Keep your text easy-to-read and benefits driven.
Handing them out: Through knowing the target audience really well, you'll be able to clearly define
the perfect dissemination tactic for the promotional materials. There are a selection of options to
consider: you may choose to distribute them on their own, with other leaflets, inserted in a magazine
or newspaper, to passers-by on the street, on cars or door-to-door. There are of course,
advantages and disadvantages to all of the above methods. After analysing your target
customers needs and habits, the most suitable option will be clear.
Overseeing responses: Promotional opportunities or rewards which are leaflet derived have proven
to be particularly helpful in keeping an eye on the ultimate accomplishments of your project and are
a great strategy to produce reaction and engagement. A small company won't lose money and will
eventually benefit where the customers buy things. Whenever you are looking to maximise brand
awareness, leaflets and brochures are an excellent promotions option. Even so, they are most
lucrative over a longer period of time based on participation results. If brochures and leaflets are an
integral component of the marketing set up, then you should look at circulation continuously.
When this has happened in the past, it was normal for the workers with the outdated skills to be
made redundant and a new set of workers brought in for the new task. It is now recognised that this
is a wasteful and stressful way of operating. Being able to switch workers from one task to another
internally is cheaper for the firm and much better for morale within the workforce.
2 CORPORATE CULTURE
Creating a flexible workforce depends on a suitable atmosphere being developed within the
business. A firm based on a traditional them and us approach will find a workforce
that is reluctant to change. It will tend to see each persons job as fixed and will not want to
take on additional roles. Workers will feel that if they take on these extra jobs they will be stepping
into another persons area and taking work from them. This idea of demarcation has, in the

past, been a source of much industrial conflict in British business.

Convincing the whole workforce that such rigid demarcation lines promote inefficiency is a major
step to achieving flexibility. Flexibility becomes possible when workers feel their role is to contribute
in any way possible so that the firm can produce a high quality product. Then they will be willing to
learn and apply new skills and knowledge, and participate in decisions which lead to further change.
The ideal corporate culture is one which encourages and rewards workers who are willing and able
to help the firm in any way necessary. This will encourage all employees to value the contributions of
others in making their firm a better one.
3 MANAGEMENT STYLE
Managers who want to develop a flexible workforce must adopt an appropriate style. They must be
open and communicate with their staff. Problems shared with the workforce may find unexpected
solutions. Workers who feel valued and a part of the company will tend to contribute more in return.
This does not mean, however, that managers allow the workers to run the business. Managers must
still manage. In particular, they must be responsible for achieving the overall objectives and strategy
of the firm. Suggestions from the shop-floor should be welcomed, but only implemented if they are
going to push the firm towards its objectives.
4 SOCIETY
Flexibility in the past has been hindered by the them and us mentality of managers
and workers alike. This led to the importance of the trade union movement in looking after the
concerns of the workforce against the strength of management.
Today, the situation is more complex. Some firms and trade unions have worked hard to break down
the barriers of status, terms and conditions and pay structure between managers and workers. Part
of the management motivation may have been to weaken the influence of trade unions, by linking
the needs of workers more clearly to the needs of the firm. In fact, though, many unions have
encouraged the move to a more mature, cooperative approach to management-worker relations.
Unfortunately, many other companies have taken a different approach. They have tried to force
flexibility onto their workers by threats of redundancies or factory closures. Aggressive, machomanagement has made a comeback in the 1980s and 1990s, sometimes accompanied by
derecognition of trade unions. In the long run, the risk is that this will prolong the them and
us divide.
To achieve the twin goals of quality and flexibility, there are a number of factors that have to be
taken into account.
ORGANISATIONAL OBJECTIVES
The aims and objectives of the organisation will have a bearing on whether or not a firm attempts to
achieve flexibility and quality. And whether such an attempt would be successful.
Is the firm concerned with maximising its profits or is the owner happy with a satisficing level of
profits? Profit maximisers may be more likely to make all the necessary changes to bring about as
flexible a workforce as possible. They will also be constantly on the lookout for new product ideas to

satisfy the changing demands of potential consumers. The satisficing firm, on the other hand, will
tend to be content to allow matters to continue in the way they always have done, at least up to the
point where survival becomes threatened.
Does the firm wish to be the market leader, or is it better suited to imitating the products being
established by other firms? Smaller firms who may only have a localised market may find their best
strategy is to follow the trends and ideas of larger, national level firms. The independent brewers,
for example, usually respond to demand after the larger firms in the industry have developed new
ideas such as the draught-flow widget in beer cans.
ORGANISATIONAL STRATEGIES
The organisations strategy is the medium- or long-term plan stating how the firms
objectives are going to be achieved. This plan will describe what is to be done, the finance
necessary, the personnel required and the demands to be placed on production.
The exact composition of these strategies will determine the ability of the firm to achieve the twin
aims of quality and flexibility.
If the firm undertakes a SWOT analysis to examine its own strengths and weaknesses in relation to
its opportunities and the threats it faces in the marketplace, then it may require production
techniques and changes to take advantage of the opportunities available to it. Other firms may be
more inward looking and will not be as responsive to external demands. The strategies they adopt
are not as likely to involve the development of flexibility.
Some firms will adopt a clear strategy for contingency planning, looking at how best they could
respond to a variety of unfortunate events.
Planning for contingencies implies that the firm has the ability to respond quickly and appropriately
to changing circumstances. This implies that the firm is both flexible and able to produce a quality
output even when this involves making rapid, short-term changes.
HUMAN RESOURCE MANAGEMENT
The workforce plays a central role in any attempt by a firm to achieve quality in its output, and it
must be willing and able to change with the firm if the goal of flexibility in operations is to be
realistic.
The workforce is usually one of the firms most expensive assets, but unlike tools and
machinery, once employed it can change and develop. In this sense it is the firms most
valuable asset.
Management style, motivation techniques and industrial relations all play a vital role in encouraging
the workforce to move with the firm. For operations management, the keys are for workers to feel a
sense of ownership to the firm and for workers to feel empowered within the organisation.
OWNERSHIP
In the past, many workers relationships with the firm for which they worked was based only
on pay. They went to work, did their job and took home a pay packet at the end of the week. More
recently some managements have come to see workers as one of the main stakeholders in a

business. Just like shareholders, customers, the local community and suppliers, the workers have a
direct interest in the performance of the firm. This sense of ownership and involvement from
workers, if it can be developed successfully, can lead to them making much greater efforts on behalf
of the firm.
EMPOWERMENT
This is when staff are able to exercise some degree of power over their own working lives. The
development of an empowered workforce depends greatly on the degree of trust between the
workers and the managers who have traditionally held this power for themselves. Managers need to
trust workers, appreciate their abilities and accept that they have the firms best interests at
heart. Then they are more likely to allow the workforce some real control over their working lives.
Similarly, staff must trust that the managers are empowering them for the right reasons, such as to
raise standards and develop their potential.
DECISION MAKING STRATEGIES
An important factor in the development of operations that are both high quality and flexible is the
way in which decisions are actually made in a business. To a large part, this will be determined by
the internal structure of the firm. A small, sole trader business is not likely to spend a great deal of
time considering many different options before making a decision. The person involved will probably
have neither the time nor expertise to do so. A large multinational firm, on the other hand, would be
as methodical as possible about decision making. The approaches to decision making that could have
an impact on the way the firm operates are:
Is the decision making done on a scientific basis, or are decisions made more randomly? Scientific
decision making tries to ensure that all decisions in the business are arrived at in a logical and
methodical fashion. A typical system would be to set a target, gather relevant data, form a likely
idea, test the idea in practical terms, review the outcome and then revisit the original aim to see
what new direction ought to be taken. Random decision making will often be based on hunches or
previous experience. Although the random decisions are much quicker to arrive at, they can be
much more dangerous in a situation which is constantly changing. A response to an issue that was
successful in the past may no longer be valid for the current situation.
Are decisions usually based on quantitative data or qualitative issues? Quantitative data involves
looking at any item that can be measured, often in money terms. Decisions that are based on
quantitative data alone will tend to look for the cheapest alternative. Workers could be replaced by
machines, or factories closed if their contribution to the firms profits is not high enough.
Such decisions will tend to remove many types of qualitative information from the decision making
process. Qualitative data involves looking at peoples behaviour, motivations and attitudes. It
is only when such information is taken on board that workers will begin to feel valued by the firm.
This is a major step forward in encouraging workers to be committed to the firm and to work with
the firm for the achievement of its aims.
CORPORATE CULTURE the prevailing attitudes and ways of behaving within a business.
DEMARCATION drawing a rigid dividing line between one job function and another.
NEGATIVE CORRELATION when the change in one variable is associated with the opposite
change in another, e.g. price up, demand down.

SATISFICING being satisfied with a compromise between competing objectives.

SHOP-FLOOR where jobs are completed that have a direct impact on production or sales,
e.g. the factory floor or the shop sales floor.