Operations Management Chapter 2-Competitiveness, Strategies & Productivity

Competitiveness
How effectively a business meets the wants or needs of customers relative to other businesses
What are three ways operations functions influence business competitiveness?
Design products and services best meeting customer’s identified wants or needs.
What are three ways operations functions influence business competitiveness?
Produce products or deliver services that meet desired price and quality levels.
What are three ways operations functions influence business competitiveness?
Manage operations and supply chain in a way that supports promo strategies.
What are the two major types of business strategies?
Organized strategies and functional strategies
Organized strategies
Support achievement of mission and goals of the entire business
Functional strategies
Developed by functional areas to implement organizational strategies
Organizational strategies drive functional strategies
Mission
long-term view
Goals and objectives
What to do to keep in line with mission
Strategies
Ways to achieve goals and objectives in 3-5 years
Tactics
Ways to implement strategies in 1-3 years
Action plans and operating procedures
What to do today, tomorrow, to keep in line with tactics, strategies, goals and objectives, and ultimately mission.
Core competencies
attributes or abilities that give a business a competitive edge
Order qualifiers
Characteristics that customers perceive as minimum standards of acceptability for a potential purchase.
Order winners
Characteristics that will cause customers to perceive a product, service, or business as better than the competition
Environmental scanning
systematic monitoring of events and trends that may present business opportunities or threats
How is environmental scanning used in strategy formulation?
SWOT
SWOT
systematic analysis of strengths, weaknesses, opportunities, and threats of an organization or business
Productivity
Measure of how effectively an organization or business is currently using its resources
Quality based strategies
focus on maintaining or improving quality
Time based strategies
focus on reducing the time required to accomplish various activities
Factors that affect the productivity of business
methods, technology, quality, capital, management, employees
Key steps to improving productivity
1. Develop productivity measures
2. Look at processes and systems holistically
3. Develop productivity improvement methods
4. Establish reasonable goals for improvement
5. Secure management support
6. When there is improvement, publicize results