Strategic Operations Performance Objectives: A Case Study: Gtmedical Company
Introduction about GTMedical Company as a case study:
GTMedical is a private company established in 2004 to supply the health care sector with medical equipment, medical disposables and services. They represent a multinational manufacturers of medical supplies from Germany, Denmark, Sweden, France, Spain, Japan, United Kingdom and United State as a sole agent for Saudi market. The main business is to import medical supplies and sell them to hospitals and clinics inside Saudi with full responsibility of doing marketing, sales activities and after sales services like installation, training, warranty and maintenance. Therefore, GTMedical has a well-trained dedicated teams for each role …show more content…
The operation expenses generated due to operation management’s decisions is key to improve earning, as the Earnings before interest and tax (EPTI) is the net sales minus the operation expenses which is called the operation profit. In general, the main operations objective might be to satisfy a wide range of stakeholders within organization. It has become commonplace to distinguish internal (like operation employees, top management) and external (like customers, society, shareholders, and suppliers) forms of stakeholders. Each group of stakeholders has their own requirements of operation performance (Slack et al, 2010).
However, it is likely that top management have an important influence on operation performance towards strategic success. The advantage of effective operation management to the business can (1) reduce cost while being effective (2) increase revenue by achieving customer satisfaction (3) increase the level of resilience (4) reduce the need of investment (5) and enhance innovation by learning from operating experience and process (Slack et al, …show more content…
Cost to be considered like employees cost, technology & facility cost and bought-in materials and services. The main challenge for any operation is to find the right balance between low cost and aspects of quality, speed, dependability, flexibility and customers’ requirements towards better productivity. Moreover, hidden costs are the other important challenge as it is one of the important cost performance factor. Custom and transport service without documented payment is an example of hidden cost (Batista, 2009).
However, it is believed that the best way to develop internal cost performance is to improve the performing of all other operations objectives. For example, improving quality will result in reducing the time and efforts needed to re-do things and fast operations reduce inventory between processes and organizational