Friday 22 May 2009

What if...?

What can happen if the operations department does actually do the thinking job and decides for themselves?

- Operations people normally think big, which means, the bigger the batch/lot size, the better for the fixed costs degression.
- They are not enough informed about the market and should solely concentrate on production/operations efficiency.
- Being focused on short term production results, they tend to neglect to look at the long term when it comes to planning and forecasting.
- Too many interfaces (inside and outside communication) distracts them from their real job - an efficient operation and delivery on time and in full.

There are more reasons, but these are the most important ones.

And now for future reference, when I say 'operations' or 'SCO', that actually means Supply Chain Operations. This is the department in the supply chain which "does" things, and that can be usually production, distribution, etc...

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