Operations management for competitive advantage

Our main data center is asquare foot facility in Denver, and we have been operating as privately owned company sinceproviding services for Fortune, and companies.

Operations management for competitive advantage

Yabresse Operations management is a multi-disciplinary field that focuses on managing all aspects of an organization's operations.

Weiss and Mark E. Gershon in Production and Operations Management. Operations management focuses on the function of providing the product or service. It is concerned with the planning and controlling of all activities necessary for the provision of the firm's product or service. Operations managers apply ideas and technologies to increase productivity and reduce costs, improve flexibility to meet rapidly changing customer needs, enhance product quality, and improve customer service.

Operations management for competitive advantage

Product development involves determining the characteristics and features of the good or service if engaged in a service-oriented industry to be sold. It should begin with an assessment of customer needs and eventually grow into a detailed product design. The facilities and equipment that will produce the product, as well as the information systems needed to monitor and control performance, are part of this system design process.

In fact, manufacturing process decisions are integral to a system's ultimate success or failure. Bateman and Carl P. Product design is a critical task because it determines the characteristics and features of the product, as well as how the product functions. Product design determines a product's cost and quality, as well as its features and performance.

These are important factors on which customers make purchasing decisions. In recent years, new design models such as Design for Manufacturing and Assembly DFMA have been implemented to improve product quality and lower costs. DFMA focuses on operating issues during product design.

This can be critical even though design costs are a small part of the total cost of a product, because, procedures that waste raw materials or duplicate effort can have a substantial negative impact on a business's operating profitability.

QFD is a set of planning and communication routines that are used to improve product design by focusing design efforts on customer needs. Process design describes how the product will be made.

The process design decision has two major components: The technical component includes selecting equipment and selecting a sequence for various phases of operational production. The scale economy or business component involves applying the proper amount of mechanization tools and equipment to make the organization's work force more productive.

Facility design involves determining the capacity, location, and layout for the production acility.


Capacity is a measure of an organization's ability to provide the demanded services or goods in the quantity requested by the customer in a timely manner. Capacity planning involves estimating demand, determining the capacity of facilities, and deciding how to change the organization's capacity to respond to demand.

Facility location is the placement of a facility with respect to its customers and suppliers. Facility location is a strategic decision because it is a long-term commitment of resources that cannot easily or inexpensively be changed.

When evaluating a location, management should consider customer convenience, initial investment necessary to secure land and facilities, government incentives, and operating transportation costs. In addition, qualitative factors such as quality of life for employees, transportation infrastructure, and labor environment should also be taken under consideration.

Facility layout is the arrangement of the work space within a facility. It considers which departments or work areas should be adjacent to one another so that the flow of product, information, and people can move quickly and efficiently through the production system.

One of the outcomes of this planning process may be to change the system design to cope with environmental changes.

For example, management may decide to increase or decrease capacity to cope with changing demand, or rearrange layout to enhance efficiency. Decisions made by production planners depend on the time horizon.Understanding sources of sustained competitive advantage has become a major area of research in strategic management.

Building on the assumptions that strategic resources are heterogeneously distributed acrossfirms and that these differences are stable over time, this article examines the link betweenfirm resources and sustained competitive advantage.

Rob McClary is executive vice resident and general manager at FORTRUST Data Centers. Since joining FORTRUST in , he has held the critical role of building the company into a premier data center services provider and colocation facility. Operations management is a multi-disciplinary field that focuses on managing all aspects of an organization's operations.

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"The typical organization consists of the integration of many different functions, " wrote Howard J. Weiss and Mark E.

Gershon in Production and Operations Management. "The two most obvious functions are to provide the product or service and to sell the product or service.

The Execution Premium is the crowning book of Kaplan and Norton's series addressing the Balanced Scorecard and Strategy maps. This book is manual for strategists as it brings together all of the current best thinking related to how an organization establishes its strategy, uses strategy maps and leverages balanced scorecards.

The Strategic Planning Process An overview of the strategic planning process including mission statement, environmental scan, strategy formulation, implementation, and control.

Strategic Management > Value Chain. The Value Chain. To better understand the activities through which a firm develops a competitive advantage and creates shareholder value, it is useful to separate the business system into a series of value-generating activities referred to as the value initiativeblog.com his book Competitive Advantage, Michael Porter introduced a generic value chain model that.

Building Competitive Advantage Through Operations