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Production and Operations Management Assignment On Dresding Medical Case

This document discusses the production and operations management strategies of Dresding Medical. It provides a polar diagram and operation strategy matrix comparing Dresding's old and new strategies. The old strategy focused on quality and flexibility with low importance on cost and speed. The new strategy emphasizes speed and cost with lower flexibility. It recommends Dresding maintain in-house manufacturing rather than subcontracting to retain quality control, customization abilities, and technical expertise.

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Aseem Sharma
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504 views6 pages

Production and Operations Management Assignment On Dresding Medical Case

This document discusses the production and operations management strategies of Dresding Medical. It provides a polar diagram and operation strategy matrix comparing Dresding's old and new strategies. The old strategy focused on quality and flexibility with low importance on cost and speed. The new strategy emphasizes speed and cost with lower flexibility. It recommends Dresding maintain in-house manufacturing rather than subcontracting to retain quality control, customization abilities, and technical expertise.

Uploaded by

Aseem Sharma
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Production and Operations Management

Assignment

On

Dresding Medical Case

Production and Operations Management Page 1


Polar Diagram
Current New
Cost 2 1
Dependabilit
y 9 9
Flexibility 9 1
Quality 9 5
Speed 1 9

Cost

10

4
Speed Dependability
2 Old Strategy
New Strategy
0

Quality Flexibility

Production and Operations Management Page 2


Old Strategy:

 Cost: The importance of cost is low. Because of their technical excellence and their excellent
research and development exercises the customer is willing to pay a higher price, which
counterbalances the high cost.

 Dependability: Customers do not mind waiting for three months but they expect timely
delivery. Therefore, DM needs to provide this level of reliability to the customers.

 Speed: Significance of speed is low. From the placement of order it takes up to 3 months to
deliver the final product. The customer is ready to wait for 3 months for the product.

 Quality: Significant importance which they ensure through their strict quality assurance process.

 Flexibility: Need to focus on flexibility because there exists a high level of customisation.
Around 70 per cent of all orders involved some form of customisation from standard ‘base
models’.

New Strategy:

 Cost: Importance to cost is comparatively more since the customers are provided with
standardized products which have close substitutes.

 Dependability: Customers are not ready to wait for delivery of standardized products.

 Speed: The speed to manufacture is required to be higher for standardize products. Customers
are not ready to wait; hence speed should be given greater importance.

 Quality: DM lays emphasis on quality as it focuses on technical excellence and expresses


concern about the quality of suppliers.

 Flexibility: There is a high level of standardization which leads to low importance of flexibility.

Production and Operations Management Page 3


Operation Strategy Matrix (Current)

Quality ***
Dependability
**
Flexibility**
Speed *
Cost*

Capacity Supply Process Development


Network Technology & Organization

Production and Operations Management Page 4


Operation Strategy Matrix (New)

Quality **
Dependability **
Flexibility*
Speed ***
Cost**

Supply Process Development


Capacity
Network Technology & Organization

Dresding Medical should not subcontract the manufacture and delivery of


products for the following reasons:

 By continuing with in-house manufacturing they can have strict quality control and also
can go for tailor-made customisation.

 Bank on their core competencies of culture of technical excellence and willingness to


modify equipment to individual customer needs.

 Through in-house manufacturing, they can maintain their superiority in leading-edge


product technology and laboratory culture, which was their core strength.

 Even though the decision may prove to be expensive in the short run, it will save money
in the long run.

 Help maintain control over production to ensure high quality and reliability.

Production and Operations Management Page 5


 Their expertise was to understand the need of clinicians and then create products to suit
that. By sub-contracting they might lose this expertise.

 By not sub-contracting they can focus on Operational Excellence of their manufacturing


process.

Production and Operations Management Page 6

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