Bhavay Mehta
28–050
PROJECT REPORT
Operations Management
Table of Contents
I. Operations Strategy …………………………………………………………………………… 2
II. Forecasting Methods ………………………………………………………………………….. 3
III. Product Design ………………………………………………………………………………….. 4
IV. Process Selection ……………………………………………………………………………….. 6
V. Facility Layout …………………………………………………………………………………… 7
VI. Assembly Line Balancing ……………………………………………………………………… 9
VII. Total Quality Management ………………………………………………………………… 10
VIII. Supply Chain Management ………………………………………………………………… 11
IX. Inventory Management …………………………………………………………………….. 12
X. Just In Time …………………………………………………………………………………….. 13
Operations Strategy
Operations strategy is concerned with the development of a long-term plan for determining how to
best utilize the major resources of the firm so that there is a high degree of compatibility between
these resources and the firm’s long-term corporate strategy Operations strategy addresses very
broad questions about how these major resources should be configured in order to achieve the
desired corporate objectives As stated earlier some of the major long-term structural issues
addressed in operations strategy include
• How big do we make the facilities?
• Where do we locate them?
• When do we build them?
• What type of process (es) do we install to make the products?
Operations strategies drive a company’s operations, the part of the business that produces and
distributes goods and services. Operations strategy underlies overall business strategy, and both are
critical for a company to compete in an ever-changing market. With an effective ops strategy,
operations management professionals can optimize the use of resources, people, processes, and
technology.
Core Operational Strategy Areas
Different sources use different terms to describe strategy areas. Here’s one way to categorize core
strategies:
• Corporate: Overall company strategy, driving the company mission and interconnected
departments
• Customer-Driven: Operational strategies to meet the needs of a targeted customer segment
• Core Competencies: Strategies to develop the company’s key strengths and resources
• Competitive Priorities: Strategies that differentiate the company in the market to better
provide a desired product or service
• Product or Service Development: Strategies in product design, value, and innovation
A company’s key success factors (KSFs) pertain to competitiveness, such as a company’s
attributes, resources, capabilities, and competencies. By identifying these, a company can
focus on the issues that matter most and measure them with key performance indicators
(KPIs).
1. Price
2. Quality, such as performance, features, aesthetics, and durability
3. Service
4. Flexibility
5. Trade-offs, or competing on one or two distinctive competencies at the necessary
expense of others
Forecasting Methods
Forecasting is estimating the magnitude of uncertain future events and provide different results with
different assumptions. Top forecasting methods includes Qualitative Forecasting (Delphi Method,
Market Survey, Executive Opinion, and Sales Force Composite) and Quantitative Forecasting (Time
Series and Associative Models). Not all methods would necessarily serve the purpose of forecasting,
the decision-makers should understand what type is best suited for the business.
Forecasting methods can be broadly classified into:
• Qualitative Methods – These methods are based on emotions, intuitions, judgments,
personal experiences, and opinions. This means that there is no math involved in qualitative
forecasting methods. Delphi Method, Market Survey, Executive Opinion, Salesforce
Composite are part of this type of forecasting.
• Quantitative Methods – These methods depend wholly on mathematical or quantitative
models. The outcome of this method relies entirely on mathematical calculations. Time
Series and Associative Models are a part of this type of forecasting.
Market Research Techniques: Under this technique, polls and surveys may be conducted to find out
