Layout strategy of the facility plays a major role in businesses as it affects operational efficiencies and effectiveness. If the business is selling products with low margin, it is not advisable to locate in the prime district where the rental is likely to be very expensive. To achieve this OM, businesses must understand their business industry, their customer segments and whether the rental is affordable and reasonable. For example, a manufacturing plant would not choose to locate in a shopping district and a fast food joint would choose to locate in a densely populated area. Location is especially crucial for retail and service industries where businesses are customer-oriented. Location is one of the key factor to consider when locating the business.
To achieve this OM decision, businesses must understand the business production needs and purchase the equipment with the right specifications to support the production goals. The home oven is not able to support the production needs of the business. However, in the long-run it actually resulted in loss sales as customers are not willing to spend longer time to wait for the buns to be baked.
In the short-run, the business save a substantial amount from purchasing a home oven. Instead of purchasing a commercial oven (supports baking of high volume buns), the owner bought a home oven (supports baking of low volume buns, usually for household use). For example, the bakery needs to bake 200 buns to meet the demand of the daily breakfast crowd. Businesses must have processes and capacity which are efficient and capable to support production goals. Production outputs must be able to support the goods and services demand. To achieve this OM decision, businesses should always have a department responsible for stringent quality checks/ control. With this bad experience, it is unlikely that the customer will ever purchase from this furniture retailer again. The entire dining set simply does not complement each other when placed together. When the customer received the goods, she found part of the table chipped off and the chairs are painted in different shades of brown. For example, a customer bought a set of European dining table and chairs from a luxury furniture retailer. Customers lose faith and confidence in the products and services when there is a lack in quality and consistencies which translate to loss sales for the business. Managing quality and ensure consistencies in the goods and services are difficult but it is fundamental for businesses to achieve. When customers pay for the goods and services, they would expect the goods and services purchased to be of certain quality and consistencies. Businesses could developed new products based on the information gathered from the market research. Market research is a powerful tool where valuable information could be obtained. This OM decision could be achieved through market research. Businesses must seek continuous improvements to their existing products and services, and must also constantly innovate and launch new products and services. To retain and attract customers, the design of their goods and services must meet customers’ expectations. "An Overview Of 10 Critical Decisions Of Operations Management" Get custom paperīusinesses make money by selling goods and services to customers.
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