Beruflich Dokumente
Kultur Dokumente
Competitiveness, Strategy,
and Productivity
2-1
1. Competitiveness
Companies must be competitive to sell their
goods and services in the market place
Competitiveness is an important factor in
determining whether a company prospers,
barely gets by, or fails
What is competitiveness?
2-2
Competitiveness: Definition
2-3
Businesses Compete Using
Marketing
Identifying consumer wants and needs
Pricing
Advertising and promotion
2-4
Businesses Compete Using
Operations
Product and service design
Cost
Location
Quality
Quick response
Flexibility
Inventory management
Supply chain management
Service and service quality
Managers and workers
2-5
Why Some Organizations
Fail?
Putting too much emphasis on short-
term financial performance at the
expense of R&D
Failing to take advantage of strengths
and opportunities
Neglecting operations strategy
Failing to recognize competitive threats
2-6
Why Some Organizations
Fail?
Placing too much emphasis in product
and service design and not enough on
process design and improvement
Neglecting investments in capital and
human resources
Failing to establish good internal
communications and cooperation among
different functional areas
Failing to consider customer wants and
needs
2-7
2.Mission/Strategy/Tactics
2-8
Strategy
Mission
The reason for existence for an organization
Mission Statement
States the purpose of an organization
Goals
Provide detail and scope of mission
Strategies
Plans for achieving organizational goals
Tactics
The methods and actions taken to accomplish strategies
2-9
Planning and Decision Making
Mission
Goals
Organizational Strategies
Functional Goals
2-10
Strategy Example
2-11
Examples of Strategies
Low cost
Scale-based strategies
Specialization
Flexible operations
High quality
Service
2-12
Strategy and Tactics
Distinctive Competencies
The special attributes or abilities that give an
organization a competitive edge.
Strategy Factors
Price
Quality
Time
Flexibility
Service
Location
2-13
Examples of Operations Strategies
2-14
Global Strategy
Strategic decisions must be made with
respect to globalization
What works in one country may not work in
another
Strategies must be changed to account for
these differences
Other issues
Political, social, cultural, and economic
differences
2-15
Strategy Formulation
Distinctive competencies
Environmental scanning
SWOT
Order qualifiers
Order winners
2-16
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 organization’s goods or
services that cause it to be perceived as
better than the competition
2-17
Key External Factors
Economic conditions
Political conditions
Legal environment
Technology
Competition
Markets
2-18
Key Internal Factors
Human Resources
Facilities and equipment
Financial resources
Customers
Products and services
Technology
Suppliers
2-19
Operations Strategy
Operations strategy – The approach,
consistent with organization strategy,
that is used to guide the operations
function.
2-20
Strategic OM Decisions
Decision Area Affects
Product and service design Costs, quality liability and environmental
Capacity Cost structure, flexibility
Process selection and layout Costs, flexibility, skill level, capacity
2-21
Quality and Time Strategies
Quality-based
strategies
Focuses on maintaining or
improving the quality of an
organization’s products or
services
Quality at the source
Time-based strategies
Focuses on reduction of
time needed to accomplish
tasks
2-22
Time-based Strategies
JAN FEB MAR APR MAY JUN
Planning
Designing
Processing
Changeover On time!
Delivery
2-23
3. Productivity
Productivity
A measure of the effective use of resources,
usually expressed as the ratio of output to
input
Productivity ratios are used for
Planning workforce requirements
Scheduling equipment
Financial analysis
2-24
Productivity
Partial measures
output/(single input)
Multi-factor measures
output/(multiple inputs)
Total measure
output/(total inputs)
Outputs
Productivity =
Inputs
2-25
Productivity Growth
Productivity Growth =
Current Period Productivity – Previous Period Productivity
Previous Period Productivity
2-26
Measures of Productivity
2-27
Examples of Partial Productivity
Measures
MFP = Output
Labor + Materials + Overhead
2-30
Process Yield
Process yield is the ratio of output of good
product to input
Defective product is not included in the
output
Service example:
Ratio of cars rented to cars available to rent
2-31
Factors Affecting Productivity
Capital Quality
Technology Management
2-32
Other Factors Affecting Productivity
Standardization
Quality
Use of Internet
Computer viruses
Searching for lost or misplaced items
Scrap rates
New workers
2-33
Other Factors Affecting Productivity
Safety
Shortage of IT workers
Layoffs
Labor turnover
Design of the workspace
Incentive plans that reward productivity
2-34
Outsourcing
Higher productivity in another company is a
key reason organizations outsource work
Improving productivity may reduce the need
for outsourcing
2-35
Improving Productivity