Four Basic Rules For Successful Operational Management
The need to set up and consistently run a smooth, effective and efficient Operational system should never be underestimated as this will give you competitive advantage and continued control over the variables in the system.
The trick is to use the Four Vs of design and implementation for maximum effect. These are:
- Volume of output: are you providing outputs in the numbers required to make maximum advantage of the economies of scale that come from your system? Is the relatively small scale of your operation possibly harmful to your growth opportunities?
- Variety of your offer: can you extend and develop your current product range to make maximum use of the existing infrastructure at your disposal? Are you missing opportunities because your outlook is too short-sighted?
- Variation in demand for your product: are you fully analysing what your sales figures are telling you? Where is there additional capacity and where (and why!) are you working at full capacity? Can systems be amended/modified to take account of demand trends? Basically, where are you missing opportunity and what are you going to do about it?
- Visibility to customers: can ALL potential customers see your offer, try it out and evaluate it against your competition? Just how good is your Marketing process and what changes can you make to improve the situation?
Business survival is not compulsory – it is only an option!
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