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Competitiveness, Strategy, and Productivity: Mcgraw-Hill/Irwin

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Zette Lim
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48 views20 pages

Competitiveness, Strategy, and Productivity: Mcgraw-Hill/Irwin

Uploaded by

Zette Lim
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 PPTX, PDF, TXT or read online on Scribd
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Chapter 2

Competitiveness,
Strategy, and
Productivity

McGraw-Hill/Irwin
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Competitiveness
Competitiveness:
 How effectively an organization meets the wants and
needs of customers relative to others that offer similar
goods or services
 Organizations compete through some combination of
their marketing and operations functions
• What do customers want?
• How can these customer needs best be satisfied?

Student Slides 2-2


Businesses Compete Using
Operations
1. Product and service design
2. Cost
3. Location
4. Quality
5. Quick response
6. Flexibility
7. Inventory management
8. Supply chain management
9. Service
10. Managers and workers

Student Slides 2-3


Hierarchical Planning

Mission  The reason for an organization’s existence

Goals  Provide detail and the scope of the mission


 organizational destinations

Organizational Strategies
 A plan for achieving organizational goals
 Serves as a roadmap
Functional Strategies

Tactics
Student Slides 2-4
Student Slides
Strategy Formulation
Effective strategy formulation requires taking into
account:
 Core competencies
 Environmental scanning
SWOT
Successful strategy formulation also requires taking
into account:

Student Slides 2-6


Strategic OM Decision Areas
Decision Area What the Decisions Affect
Product and service design Costs, quality, liability, and environmental issues
Capacity Cost, structure, flexibility
Process selection and Costs, flexibility, skill level needed, capacity
layout
Work design Quality of work life, employee safety, productivity
Location Costs, visibility
Quality Ability to meet or exceed customer expectations
Inventory Costs, shortages
Maintenance Costs, equipment reliability, productivity
Scheduling Flexibility, efficiency
Supply chains Costs, quality, agility, shortages, vendor relations
Projects Costs, new products, services, or operating systems

Student Slides 2-7


Time- and Quality-Based Strategies
 Time-based strategies
 Strategies that focus on the reduction of time needed to accomplish
tasks

 Quality-based strategy
 Strategy that focuses on quality in all phases of an organization

Student Slides 2-8


Student Slides
Productivity
Productivity
 A measure of the effective use of resources, usually
expressed as the ratio of output to input
Productivity measures are useful for
 Tracking an operating unit’s performance over time
 Judging the performance of an entire industry or
country

Student Slides 2-10


Productivity Measures
Output
Productivity =
Input

Output Ouput Output


Partial Measures ; ;
Single Input Labor Capital
Output Ouput Output
Multifactor Measures ; ;
Multiple Inputs Labor +Machine Labor +Capital +Energy

Goods or services produced


Total Measure
All inputs used to produce them

Student Slides 2-11


Student Slides
Student Slides
Factors Affecting Productivity

Methods

Capital Quality

Technology Management

Student Slides 2-14


Improving Productivity
1. Develop productivity measures for all operations
2. Determine critical (bottleneck) operations
3. Develop methods for productivity improvements
4. Establish reasonable goals
5. Make it clear that management supports and encourages productivity
improvement
6. Measure and publicize improvements

Student Slides 2-15


Discussion and Review Questions

Student Slides
Problems

Student Slides
Problems

Student Slides
Problems

Student Slides
Problems

Student Slides

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