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Businesses Compete Using Operations

Product and service design Cost Location Quality Quick response


Businesses Compete Using Operations

Flexibility Inventory management Supply chain management Service


Why Some Organizations Fail

Too much emphasis on short-term financial performance Failing to take advantage of strengths and opportunities Failing to recognize competitive threats Neglecting operations strategy
Why Some Organizations Fail Too much emphasis in product and service design and not enough on improvement

Neglecting investments in capital and human resources Failing to establish good internal communications Failing to consider customer wants and needs

Mission/Strategy/Tactics

Strategy Strategies Plans for achieving organizational goals Mission The reason for existence for an organization Mission Statement Answers the question What business are we in? Goals Provide detail and scope of mission Tactics The methods and actions taken to accomplish strategies

How does mission, strategies and tactics relate to decision making and distinctive competencies?
Strategy Strategy Tactics Tactics Mission Mission

Strategy and Tactics Distinctive Competencies The special attributes or abilities that give an organization a competitive edge. Price Quality

Time Flexibility Service Location

Mission Goals Organizational Strategies Functional Goals Finance Strategies Marketing Strategies Operations Strategies Tactics Tactics Tactics Operating procedures Operating proceduresOperating procedures

Planning and Decision Making

Operations Strategy Operations strategy The approach, consistent with organization

strategy, which is used to guide the operations function. Strategy Formulation

Distinctive competencies Environmental scanning SWOT Order qualifiers Order winners


Banks, ATMs Convenience

Location Location

Disneyland Nordstroms Superior customer service

Service Service

Burger King

Supermarkets Variety Volume

Flexibility Flexibility

Express Mail, Fedex, One-hour photo, UPS Rapid delivery On-time delivery

Time Time
Sony TV Lexus, Cadillac Pepsi, Kodak, Motorola High-performance design or high quality Consistent quality

Quality Quality Price Price

U.S. first-class postage Motel-6, Red Roof Inns Low Cost

Exam
p

les of Distinctive
Strategy Formulation Order qualifiers Characteristics that customers perceive as minimum standards of

acceptability to be considered as a potential purchase Order winners Characteristics of an organizations goods or services that cause it to be perceived as better than the competition
Key External Factors

Economic conditions Political conditions Legal environment Technology Competition Markets

Key Internal Factors

Human Resources Facilities and equipment Financial resources Customers Products and services Technology Suppliers
Quality and Time Strategies Quality-based strategies Focuses on maintaining or improving the quality of an organizations

products or services Quality at the source

Time-based strategies
Focuses

on reduction of time needed to accomplish tasks Operations Strategy and Competitiveness

Operations Strategy A Framework for Operations Strategy Meeting the Competitive Challenge Productivity Measurement
3

Operations Strategy Strategic Alignment


Customer Needs Corporate Strategy Operations Strategy
A t

lignmen Core Competencie


s

Decision

Processes, Infrastructure, and Capabilities

Production, Operation & Management


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and production operation Management POM Follow

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Athira Unnileft a comment ways this? 04 / 18 / 2011

Sanoop Valappilekandyleft a comment thank u 06 / 08 / 2010 rishi1987left a comment nice work..................................... 05 / 02 / 2010 yastepacaleft a comment helpfull information, thanks 02 / 18 / 2010 chuperamigos replied: hola mi nombre es baltazar mayo nieto soy su alumno de proceso de manufactura, practicamente este docuemento contiene todos los temas vistos en la clase. 03 / 07 / 2010 CiCiLLi replied: solo que en esta paginha scribgd se desconfiguero 03 / 05 / 2010 CiCiLLi replied: http://yazceci.wordpress.com/wp-admin... esta es la original 03 / 05 / 2010 CiCiLLi replied: subi mi trabajo en esta pagina (scribd) en mi usuario. y aparte me inscribi en wordpresss.com y lo subi en esa pagina en el sig link http://yazceci.wordpress.com/?attachm... 03 / 05 / 2010 smotsobleft a comment Thanks a lot... Its very useful 12 / 16 / 2009 Upload a Document
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