Casestudy 01 Question”Theelements of operations Strategy that seem to apply universally may be thoughtof as principles of operations management”. Based on these principles examinethe operational activities on which Titeflex should focus in developing aneffective operational strategy. Elements of an operation strategy known asprinciples of operations management . There are 15 principles and that can bedivided into two groups and seven categories. First group concern about theformulation of operations strategy in terms of customers, company andcompetition. Second group concern about the implementation of operationalstrategy. Formulation of operations strategy Accordingto the given scenario can be summarized details as follows.
Inthe present context Titeflex Corporation manufactured and offered its productsfor three main segments. Such as aerospace, industrial and automotive. Titeflexprovides pricy products with excellent quality. Its product line consisted withdifferent hoses with dissimilar sizes, shapes, fittings and protective Sleeving. Titeflexhad significant market share in the aerospace market. In this market productswere highly customized and such products had high profit margins.
But theproblem is Teleflex’s market share had declined in this segment. Therefore,they should concern about increase their market share, same as the past. Organization environment is dynamic. As aresult of that Changing customer needs and wants continuously. According to theenvironmental changes aerospace customer’s needs and wants were changed.Therefore Titeflex should make innovative products for their customers. Becausein this segment customer prefer customized products.
Innovation is one of thebest ways to customization. If Titeflex will provide innovative product withreasonable price, definitely they can succeed in the market. Horsesfor industrial sector can be divided in sub- segments. Such as applications foroil field apparatus to refrigerating equipment, and high pressure and hightemperature segment. Titeflex played minor role in the applications for oilfield apparatus to refrigerating equipment market due to price sensitivecustomers.
According to the caseTiteflex was paying more attention to maintain high quality. But the abovesegment prefers low price products and not concern about the quality. ThereforeTiteflex should be produced low price products with the required level ofquality. No need to maintain high quality. Quality and reliability were important factors in high temperature andhigh pressure segment. Customers are not price sensitive in that market.
Therefore Titeflex can charge higher prices while providing high quality productsto the customers than its competitors. Automotivesegment was probable to rise the fastest. But high price competition and smallvarieties of products available in this market. And also late and earlydeliveries were not accepted by customers. In very first Titeflex must forecastfuture demand.
Because automotive segment had a high probability to grow. Afterthat should be planned material, labour, capacity and machine requirements tofulfill future demand. Asa result of development of the information technology customer’s needs and wantschanging day by day.
Due to thatchanging opportunity and threats inexternal environment. Therefore, organizations should be conducted survives toidentify customers’ requirements periodically. Based on such service should beimplement continual improvements in term of quality, cost, flexibility, responsetime service and variability. If not could not be survived in the market. Accordingto the case there were 06 organizational levels from the bottom to top.
Hencefix a machine for purchase order might require seven or eight signatures. Due tothat increase response time to customer order. Therefore should beeliminated levels of authorizations forfix a machine for purchase orders. It will be caused to speed up themanufacturing process to quick response. Titeflexhad spent more money on MIS system. But still they did not acquire benefitsfrom it. Example: One manager of Titeflex stated that they have lots of meetingsin interdepartmental coordination in daily basis. If they will arrange the organization processfavor to MIS system, should not be conducted meetings in daily basis.
As a result of that, managers can save their timeand can utilize their time to efficient work. Titeflexplayed minor role in the applications for oil field apparatus to refrigeratingequipment market due to price sensitive customers. It has core competencies tobecome market leader in the above segment. Therefore, in very first should be studiedfollowing factors, · Competitor’s capacities· Designs · Production cost· Flexibility· Quality· Skill base · Response timeAfterthat should make changes in relevantareas to become market leader. In present context organizations conductedbenchmarking analysis to identify competitor’s position. So Titeflex shouldconduct benchmarking studies to identify competitor’s position. Because itprovides the following advantages for Titeflex.
· Helps Titeflex to improve theircompetitive advantages.· Benchmarking is a time efficient andcost effective way of establishing a pool of innovative ideas.· Titeflex can measure themselves againstthe best industry practices.· Helps for continuous improvement.· Inspire managers to compete.· Helps to identify non value activitiesand plans for process improvements.· Provides a basis for training humanresources.