Operations Managment.Intangible specialisation and product-mix Essay

Operations Managment.Intangible specialisation and product-mix optimisation - Essay Example Based on the specific perspective oriented approach that the operations management makes regarding productivity agenda of an organization, strategic management can be used to formulate policies to enable balancing of availed options in operations (Schiavone, 2004, p7). In this study, Fiat’s case study has been used to demonstrate the importance of understanding operations management from a systems approach in withstanding market conditions. Perhaps defining the term intangible within the context of organization operations will assist in making a conclusive perspective eon the topic. The term intangible denotes assets, capital or factors that an organization works with but they are not immediately visible. On the other hand, tangible assets are the physically visible factors which the company uses in production. Both tangible and intangible factors contribute to the overall operation of the company. Economic evolution of organizations and other production entities is characterized by the accumulation of assets both. Intangible assets also represent relevant knowledge and technologies that the organization needs to remain in a specified production line. Intangible specialization is the concentration of accumulation of assets that are intangible in nature such as technology, with little emphasis being made to accumulation of tangible assets. Since there is some need to balance the control of accumulation of these two sets of assets, it becomes detrimental in the long run when the organization is unable to achieve the balance. Intangible specialization entails the concept of management decision making that tends to lean to and favor the dominance of a service intensive approach in production operations. The most dominant characteristic of intangible specialization is heavy reliance on routines as well as dependence in rigid production paths. Inappropriate