Strategic Issues in Operations Management 2020

Manufacturing facilities and production have been hit hard by the coronavirus (COVID19) and while some facilities have been thriving during this period, there are some that are struggling heavily. Keeping up with and understanding the strategic issues that lie ahead as the coronavirus rages on with operations management will only allow you to become better prepared for potential outcomes and strategies that need to be enforced within the company.

Once again, strategic issues within operations management are a must to look into and understand, especially in 2020. Therefore, within this blog we are going to discuss the strategic issues within operations management in 2020.

Strategic Issues in Operations Management in 2020

As 2020 has been one of the most historical years to live through, there are a series of strategic issues and challenges to overcome as you seek to uphold your business. These strategic issues within operations management include the following:

• Health and Safety – Health and safety is a primary concern as of right now – and more than likely will be one for a period of time. Operations managers need to ensure that they are keeping up with any new information pertaining to health or safety and take proper precautions within their facility. This may even include hiring an outside company to routinely clean the facility. By far, health and safety needs to be a top concern in 2021.

• Automation –  Automation has been a primary concern and challenge for many individuals that work within facilities. As management and operations management are continuously looking to increase efficiency within their operation, this may push frontline workers further out of the picture, until essential they are unemployed.  This is an issue to especially consider during the coronavirus as facilities may be looking more into automation and thus reducing the number of frontline workers.   

• Demand Changes – Demand changes are apparent during this time of the coronavirus, as we have seen surges in demand for some operations while other facilities have seen demand freefall. Being agile in the sense that you are prepared in a moment’s notice of potential demand changes is key when attempting to keep your operation afloat. This may include changing up your demand strategy or implementing new demand forecasting technologies.

A software that can aid with demand responsiveness, automation oversight, and ultimately increasing overall operational efficiency includes PlanetTogether’s Advanced Planning and Scheduling (APS) Software. Advanced Planning and Scheduling (APS) Software is a must for modern-day manufacturing facilities that are seeking to enhance their operation and ultimately take production up a notch.

Advanced Planning and Scheduling Software 

Advanced Planning and Scheduling (APS) software has become a must for modern-day manufacturing operations due to customer demand for increased product mix and fast delivery combined with downward cost pressures. APS can be quickly integrated with a ERP/MRP software to fill gaps where these systems lack planning and scheduling flexibility and accuracy. Advanced Planning and Scheduling (APS) helps planners save time while providing greater agility in updating ever-changing priorities, production schedules, and inventory plans.

• Create optimized schedules balancing production efficiency and delivery performance
• Maximize output on bottleneck resources to increase revenue
• Synchronize supply with demand to reduce inventories
• Provide company-wide visibility to capacity
• Enable scenario data-driven decision making

Implementation of Advanced Planning and Scheduling (APS) software will take your manufacturing operations to the next level of production efficiency, taking advantage of the operational data you already have in your ERP.

Video: Capacity Planning for Strategic Operations Management with PlanetTogether APS

In this video, you’ll see how PlanetTogether Advanced Planning & Scheduling (APS) supports capacity planning in the face of today’s strategic operations challenges—health and safety requirements, increased automation, and rapid demand changes. Learn how planners can use APS to align finite capacity with shifting priorities, protect frontline workers, and keep production running profitably during disruption.

We walk through how capacity planning with APS helps operations managers:

– Incorporate health and safety constraints (such as COVID-era spacing, cleaning time, or staffing limits) directly into the production schedule

– Evaluate the impact of automation initiatives on labor requirements and bottleneck resources before making capital decisions

– React to demand spikes and demand freefall by rapidly rescheduling orders and reallocating capacity instead of relying on static, infinite-capacity plans

– Use scenario planning to compare alternative capacity strategies and choose the one that best supports long-term strategic goals

This video is ideal for operations leaders, planners, and executive teams who want capacity planning to be a core part of their strategic response to health/safety concerns, automation, and volatile demand.

 

Turn Strategic Operations Issues into a Stronger Planning Process

Health and safety, automation, and sudden demand swings are no longer rare events—they are ongoing strategic issues in operations management. Facilities that treat them as one-off crises end up reacting from the shop floor up. Facilities that win build these risks into a stronger planning and scheduling process, using real-time data and APS to balance capacity, demand, and safety every day.

Download our one-page “The Money Is in the Planning” infographic to see how advanced planning and scheduling can help you:

• Use your existing ERP/MRP data with APS to create optimized schedules that balance efficiency and delivery performance
• Maximize output on bottleneck resources while honoring health and safety constraints and automation limits
• Synchronize supply and demand so you can respond to demand surges or freefall without excessive inventory or chronic stockouts
• Provide company-wide visibility to capacity so leadership can make strategic decisions based on what the operation can truly deliver
• Support scenario-based, data-driven decisions about automation investment and staffing instead of relying on gut feel

Share it with your operations, planning, and executive teams as a quick visual guide to where better planning and scheduling turns today’s strategic issues into manageable, data-driven decisions.