Operations strategy optimization based on developed sense and respond methodology

Yang Liu,Josu Takala

doi:10.24212/2179-3565.2012v3i1p25-34

Abstract

How to make adaptive adjustments on operations strategy in dynamic business environments becomes the very important competitiveness to all kinds of companies. This paper aims to develop sense and respond (S&R) models in agile and dynamic strategic adjustment by introducing scaled critical factor index (SCFI) compared with previous S&R models such as critical factor index (CFI) and balanced critical factor index (BCFI). In addition, the case study in this paper shows the difference among the three S&R models and the advantages of SCFI model. The analysis results show that the SCFI models have contribution to the adaptive operations strategy adjustment based on clear objectives in dynamic and turbulent business environment. Managers can make quick decisions by the analytical models.

Highlights

The fierce business competition stimulates enterprises to adjust their strategies for deep and quick development
This paper aims to develop sense and respond (S&R) models in agile and dynamic strategic adjustment by introducing scaled critical factor index (SCFI) compared with previous S&R models such as critical factor index (CFI) and balanced critical factor index (BCFI)
The case study in this paper shows the difference among the three S&R models and the advantages of SCFI model

Summary

Introduction

The fierce business competition stimulates enterprises to adjust their strategies for deep and quick development. The new competitive environment causes manufacturing firms make quick response to customer demands, to high quality products, and to flexible industrial system (Skinner, 1986)[1]. How to improve the competitiveness of the enterprises becomes the focus of attention. Competitiveness of enterprises depends on the basic operation factors and the optimization ability to those factors. The traditional factors of operations strategy research are cost, quality delivery and flexibility (Gerwin, 1993)[2]. Research is deeply developed and the research articles are more about technology strategy with knowledge learning (Ahmad and Schroeder, 2011)[3], responsive supply chain (Gunasekaran et al, 2008)[4] and green-type manufacturing (Zeng and Zhang, 2011)[5] etc.

Objectives

Methods

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Conclusion