elements of operations Strategy that seem to apply universally may be thought
of as principles of operations management”. Based on these principles examine
the operational activities on which Titeflex should focus in developing an
effective operational strategy.
Elements of an operation strategy known as
principles of operations management . There are 15 principles and that can be
divided into two groups and seven categories. First group concern about the
formulation of operations strategy in terms of customers, company and
competition. Second group concern about the implementation of operational
Formulation of operations strategy
to the given scenario can be summarized details as follows.
the present context Titeflex Corporation manufactured and offered its products
for three main segments. Such as aerospace, industrial and automotive. Titeflex
provides pricy products with excellent quality. Its product line consisted with
different hoses with dissimilar sizes, shapes, fittings and protective Sleeving.
had significant market share in the aerospace market. In this market products
were highly customized and such products had high profit margins. But the
problem 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 a
result of that Changing customer needs and wants continuously. According to the
environmental changes aerospace customer’s needs and wants were changed.
Therefore Titeflex should make innovative products for their customers. Because
in this segment customer prefer customized products. Innovation is one of the
best ways to customization. If Titeflex will provide innovative product with
reasonable price, definitely they can succeed in the market.
for industrial sector can be divided in sub- segments. Such as applications for
oil field apparatus to refrigerating equipment, and high pressure and high
temperature segment. Titeflex played minor role in the applications for oil
field apparatus to refrigerating equipment market due to price sensitive
customers. According to the case
Titeflex was paying more attention to maintain high quality. But the above
segment prefers low price products and not concern about the quality. Therefore
Titeflex should be produced low price products with the required level of
quality. No need to maintain high quality.
Quality and reliability were important factors in high temperature and
high pressure segment. Customers are not price sensitive in that market.
Therefore Titeflex can charge higher prices while providing high quality products
to the customers than its competitors.
segment was probable to rise the fastest. But high price competition and small
varieties of products available in this market. And also late and early
deliveries were not accepted by customers. In very first Titeflex must forecast
future demand. Because automotive segment had a high probability to grow. After
that should be planned material, labour, capacity and machine requirements to
fulfill future demand.
a result of development of the information technology customer’s needs and wants
changing day by day. Due to that
changing opportunity and threats in
external environment. Therefore, organizations should be conducted survives to
identify customers’ requirements periodically. Based on such service should be
implement continual improvements in term of quality, cost, flexibility, response
time service and variability. If not could not be survived in the market.
to the case there were 06 organizational levels from the bottom to top. Hence
fix a machine for purchase order might require seven or eight signatures. Due to
that increase response time to customer order. Therefore should be
eliminated levels of authorizations for
fix a machine for purchase orders. It will be caused to speed up the
manufacturing process to quick response.
had spent more money on MIS system. But still they did not acquire benefits
from it. Example: One manager of Titeflex stated that they have lots of meetings
in interdepartmental coordination in daily basis. If they will arrange the organization process
favor to MIS system, should not be conducted meetings in daily basis. As a result of that, managers can save their time
and can utilize their time to efficient work.
played minor role in the applications for oil field apparatus to refrigerating
equipment market due to price sensitive customers. It has core competencies to
become market leader in the above segment. Therefore, in very first should be studied
that should make changes in relevant
areas to become market leader. In present context organizations conducted
benchmarking analysis to identify competitor’s position. So Titeflex should
conduct benchmarking studies to identify competitor’s position. Because it
provides the following advantages for Titeflex.
Helps Titeflex to improve their
Benchmarking is a time efficient and
cost effective way of establishing a pool of innovative ideas.
Titeflex can measure themselves against
the best industry practices.
Helps for continuous improvement.
Inspire managers to compete.
Helps to identify non value activities
and plans for process improvements.
Provides a basis for training human