Using Improvement Gap Analysis for the management of trade-offs of operational strategies

Abstract:

Objective

The objective of the present paper is to propose the use of the Improvement Gap Analysis (IGA) as a method for the management of commitments, or trade-offs, of operating strategies.

Design/methodology/approach

A quantitative survey was carried out with 32 clients of a furniture manufacturer. The customers received and had the company’s products properly installed in their homes between January and September 2012. It verifies the current performance and the level of expected satisfaction and dissatisfaction of customers due to changes in the performance of operating strategies.

Findings

This study demonstrates that, by using Improvement Gap Analysis, it is possible to verify the impact of changes in the performance of operational strategies through customer satisfaction.

Limitations of the study

A limitation to this research arises from the IGA methodology regarding the use of expected customer dissatisfaction as a measure of relevance of operational strategies. Another limitation is that this study only analyzes the change in the performance of operational strategies of quality, flexibility, speed, reliability and costs. However, the literature presents other possible operational strategies or competitive criteria, requiring future empirical research to investigate possible conflicts of management recommendations between the respective criteria.

Practical implications

Managers should be aware of the focus of improvement in the performance of operational strategies and, in possible situations of conflicts inherent to the process of managing trade-offs in operations, which operational strategy could have its performance reduced. The priorities of recommended improvements by methods based on stated importance can be misleading, because the importance declared by clients may change as a function of performance. IGA can be a viable alternative. It is possible to define not only “what to improve”, but also “how much to improve” in relation to the current performance of operational strategies.

Originality/value

The performance of operational strategies has been managed from the perspective of stated importance, only defining “what to improve”. However, the importance may change depending on performance, and it may be necessary to define “how much to improve”. The present research confirms changes in the importance of operational strategy due to the change of its performance, and proposes the use of the IGA method not only to define the level of improvement, but also the change of configuration in operational strategies.

Keywords:
Competitive strategy; Production strategy; Improved management; Operations management