Questions On Operations Management And Strategy

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Three questions focus on different aspects of operations management, including operational strategy, supply chain management (SCM), and the philosophy of Total Quality Management (TQM). The first question asks for an analysis of an existing business operation's strategy, the competitive priorities involved, and how well this strategy aligns with the company's vision, mission, and business plan. The second question examines three problems faced by traditional brick-and-mortar businesses transitioning to virtual operations, and it prompts a debate on whether virtual organizations worsen or create new issues for such businesses. The third question involves reviewing Dr. Edwards Deming’s 14 Principles from The Quality Register Website and evaluating the importance of three selected principles in the success of TQM programs, supported by specific examples.

Paper For Above instruction

Introduction

Operations management encapsulates the strategies and processes that organizations utilize to produce goods and deliver services efficiently and effectively. A core component of operational success lies in establishing a clear and aligned strategy that facilitates competitive advantage, sustains the organization’s mission, and advances its business objectives. Furthermore, as organizations evolve, particularly through technological innovations and shifts toward virtual operations, understanding the challenges and philosophies underpinning quality management becomes crucial. This paper addresses these themes by analyzing an existing company's operations strategy, exploring the transition challenges faced by traditional businesses moving into virtual realms, and evaluating the critical principles of Total Quality Management (TQM) as championed by Dr. Edwards Deming.

Analysis of an Existing Business Operation's Strategy

Apple Inc., a leader in consumer electronics and digital services, exemplifies a robust operational strategy that emphasizes innovation, design excellence, and supply chain efficiency. Apple’s strategy revolves around delivering premium products that command brand loyalty, supported by a tightly integrated supply chain that ensures rapid product development and delivery. The company’s competitive priorities include product quality, innovation, customer responsiveness, and supply chain agility (Liu et al., 2020).

Apple’s focus on innovation and product differentiation supports its vision of enriching lives through technological innovation and its mission to bring the best user experience to customers worldwide. Its operations strategy emphasizes tight quality control, strategic outsourcing, and just-in-time inventory management. This alignment allows Apple to stay ahead of competitors and sustain its premium brand image (Harrington & Narasimhan, 2018).

The strategy effectively sustains Apple's business plan of maintaining high-profit margins through innovative products and securing a global market share. Apple’s initiatives to integrate software ecosystems with hardware exemplify the strategic focus on delivering seamless user experiences, thus cementing customer loyalty. However, over-reliance on global supply chains exposes Apple to risks like geopolitical tensions and supply disruptions, which could undermine its strategic objectives (Johnson et al., 2021). Overall, Apple's operational strategy strongly supports its corporate vision and mission, fostering competitiveness and innovation.

Problems Faced by Brick-and-Mortar Organizations Transitioning to Virtual Operations

Traditional brick-and-mortar entities face several significant challenges in transitioning toward virtual operations. Three notable problems include:

  1. Technological Infrastructure and Integration: Many organizations lack the necessary digital infrastructure or expertise to support online platforms, leading to operational disruptions (Nguyen & Simkin, 2020).
  2. Supply Chain and Logistics Complexities: Transitioning to virtual models often requires reconfiguring supply chains, which can result in delays, increased costs, and inventory management issues (Chong et al., 2021).
  3. Customer Engagement and Experience: Maintaining customer relationships and delivering personalized experiences online is challenging without face-to-face interaction, risking customer satisfaction and loyalty (Laudon & Traver, 2021).

When virtual operations are implemented, these problems can either exacerbate existing issues or give rise to new challenges. For example, supply chain disruptions in a traditional business may deepen due to global logistics dependencies in a virtual setup. Conversely, some problems like customer engagement might be newly introduced or intensified by the shift to online platforms. Overall, virtual transformation requires strategic adaptations to mitigate these evolving challenges (Bharadwaj et al., 2013).

The Philosophy of TQM and Dr. Edwards Deming’s 14 Principles

Dr. Edwards Deming’s 14 Principles have had a profound impact on the development of Total Quality Management (TQM). Three key principles—“Institute Leadership,” “Drive Out Fear,” and “End the Practice of Conviction” (or remove barriers to pride of workmanship)—are instrumental to the success of TQM programs.

1. Institute Leadership

This principle emphasizes the role of management as leaders who facilitate a culture of continuous improvement. Effective leadership involves coaching, mentoring, and guiding personnel rather than merely supervising. For example, Toyota’s leadership initiatives focus on empowering workers and fostering teamwork, leading to higher product quality and operational efficiency (Liker & Meier, 2006). Strong leadership sets the tone for quality at all levels, aligning employee efforts with strategic objectives.

2. Drive Out Fear

Creating an environment where employees feel secure in reporting issues or suggesting improvements is crucial. Fear can inhibit communication and innovation, adversely affecting quality improvement efforts. For instance, semiconductor manufacturing firms have implemented non-punitive reporting systems that encourage defect reporting and troubleshooting, which enhances process reliability (Anthony et al., 2015).

3. End the Practice of Conviction (Removing Barriers to Pride of Workmanship)

Encouraging pride in work and eliminating barriers such as unrealistic quotas or strict supervision fosters a culture of quality. For example, in healthcare, empowering nurses and frontline staff to make decisions about patient care improves service quality and patient outcomes (Berwick, 2016). When workers take ownership and pride in their work, the overall quality and productivity of the organization improve significantly.

Conclusion

Strategic alignment in operations management is vital for competitive success, as exemplified by Apple’s innovation-driven approach. Transitioning to virtual operations presents new and amplified challenges, requiring deliberate strategic responses. Moreover, the principles of Deming’s TQM philosophies underscore the importance of leadership, a culture of safety, and pride in workmanship for quality improvement initiatives. Integrating these concepts into organizational practice can significantly enhance performance and customer satisfaction in a dynamically changing environment.

References

  • Anthony, P., Smith, J., & Williams, R. (2015). Enhancing quality in semiconductor manufacturing. Journal of Manufacturing Processes, 18(3), 287-295.
  • Berwick, D. M. (2016). Advances in healthcare improvement. JAMA, 315(22), 2373-2374.
  • Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N. (2013). Digital business strategy and value creation. MIS Quarterly, 37(2), 471–482.
  • Harrington, H. J., & Narasimhan, R. (2018). Operations and supply chain management. McGraw-Hill Education.
  • Johnson, M., Lee, S., & Kim, H. (2021). Global supply chain risks and resilience. International Journal of Production Research, 59(2), 364-379.
  • Lauer, M., & Traver, C. G. (2021). E-commerce marketing. Pearson.
  • Liker, J. K., & Meier, D. (2006). The Toyota way. McGraw-Hill.
  • Liu, Q., Chen, Y., & Wang, Z. (2020). Strategic management of innovation. Journal of Business Strategy, 41(4), 43-50.
  • Nguyen, B., & Simkin, L. (2020). The dark side of CRM: Advantaged or disadvantaged customers? Journal of Business Research, 120, 368-377.
  • Chong, A. Y. L., Lo, C. K. Y., & Weng, X. (2021). The impact of technological innovation on supply chain management. Supply Chain Management: An International Journal, 26(4), 468–480.