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Operations Strategy Dr. Dinesh Likhi, Director (Production and Marketing) and Member, Board, in Mishra Dhatu Nigam Limited Strategic Framework For Manufacturing A company needs a ‘strategy’ that specifies the kind of competitive advantage it seeks in its market place and articulates how it shall be achieved. In today’s changing, challenging and competitive world, it is not enough for a company to have its goal to be as good as that of its toughest competitor, advanced equipment or the transfer of production to a low–wage area, rather, a need has arisen for ‘strategic flexibility’, better suited to respond to the market requirements of the time than to pursue a mere generic approach to competitive success. It is, thus, obvious that the key to long term success of a company is being able to do things better than your competitors, besides selecting and creating operating capabilities in anticipation of market demands. Mass Customization – Developing Unique Operating Capabilities Providing remarkable services to customers is imperative in order to perform better than the competitors. One of the programs invented to meet every customer’s request is mass customization. This attempt has been on one hand, embraced as providing a unique value to the customers efficiently and on the other as a strategy that can produce unnecessary cost and complexity. Later, four distinct approaches to customization namely - collaborative, adaptive, cosmetic and transparent have been identified, which provided a framework for companies to design customized products and to support business processes. Each of the approaches is important in its own way and differs on the conditions under which each should be employed. Collaborative customization is apt for businesses which deals with customers who cannot easily articulate their requirements, and grow frustrated when forced to select from a plethora of options. The adaptive approach is appropriate for businesses whose customers want the product to perform in different ways in different situations. The cosmetic approach is appropriate when customer’s usage of a product is the same but differs only in how they want it to be presented. The transparent approach to customization is appropriate when customers’ specific needs are easily predictable. 5 NOVEMBER 2012
The various combinations of the approaches to customization have to be explored and a company has to come up with the combination that would create customer unique value at the lowest possible cost. Product Development – A Way to Survive Competition Creating a sustainable product development competitive advantage is the most effective organizational capability, which will have a greater impact on market share and the rate of share growth than other organizational capabilities. The company has to be adept at creating new products and extensions of them to be competitive, according to the changing market conditions and the product life cycle, a factor popularly known as timeto-market and to deliver this capability, being productive and timely is imperative. The rise in customer expectations in this competitive environment has made quality and accuracy (in design), a virtue of design, which also determines a business competitive status. enabled, accurate budget allocations are made and the risk of performance issues at the functional block level are minimized. During product development stage, supply chain management plays a key role not only in operations to deliver new product, but also in adopting innovative processes such as IPD. Technology Strategy – A Competitive Advantage for a Diversified Corporation In a diversified corporation, it is essential for a corporate technology strategy to be an integral part of corporation’s business strategy. In fact, it has become an economic imperative of late. The developed strategy has to be continuously evolving and also must adapt to the changing competitive patterns. A well-structured strategy gives an opportunity for senior managers of the organization to understand the threats and opportunities faced by the corporation, which in turn helps in improving efficiency, effectiveness and profitability of the corporation (or business). Human Capital Strategy With the help of processes like Integrated Product Development and Sequential Development, smooth functioning is Human capital is the most valuable and important asset held by an organization today. Managing human capital effectively is directly proportional to the success of the company and an effective management in turn requires a well-formulated strategy. The strategy of human capital is based on two principles – 6 NOVEMBER 2012
Page 2 and 3: CONTENTS Editorial Director’s Mes
Page 4 and 5: Dinesh Kumar Likhi, Prof. Koilakunt
Page 6 and 7: 10-Step Methodology for Deploying T
Page 8 and 9: human resource management systems d
Page 12 and 13: People are assets whose value can b
Page 14 and 15: References [1]. Robert H. Hayes and
Page 16 and 17: environment including energy effici
Page 18 and 19: Dark Ages of Manufacturing Industry
Page 20 and 21: Also the policy makers do not bothe
Page 22 and 23: product to the government at a frac
Page 24 and 25: various public and private sector c
Page 26 and 27: Mr. J L Aggarwal: The steel industr
Page 28 and 29: Q) Sir, the term PMI is very common
Page 30 and 31: DEBATE- Is a Strong Manufacturing B
Page 32 and 33: Summer Internship Prashant Meshram
Page 34 and 35: Summer Internship Abhijeet Srivasta
Page 36 and 37: learnt by observing Toyota over the
Page 38 and 39: Crossword Across 1. Type of manufac
Page 40 and 41: Solution to Crossword Team Strive 3

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