OM Chapter 2 Spring 2014 (2)

8/10/2019 OM Chapter 2 Spring 2014 (2)

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o p e r a t !o n s

m a n a g e m e n t

PirzadaFebruary 3, 2014


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http://www.ccint.net/services.phpCompetitive capabilities International


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operat!onsstrategy

competitiveness

PirzadaFebruary 3, 2014


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Objectives

Operations Strategy

Competitive Dimensions

Order Qualifers and Winners

Strategy Design Process

A Framework or !anuacturing Strategy

Service Strategy Capacity Capa"ilities

Productivity !easures


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W#at is Strategy$

Broader policies and plans to create and sustain

valuesfor its share holders.


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Strategy

"Strategy is the directionand

scopeof an organization over

the long-term:which achieves

advantagefor the organization

through its conguration of

resourceswithin a challenging

environment, to meet theneeds of marketsand to fulll

stakeholderexpectations".


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Strategy

In other words, strategy is about

!here is the business trying to get to in the longterm #direction%&

!hich mar$ets should a business compete in andwhat $ind of activities are involved in suchmar$ets% 'markets( scope&

'ow can the business perform better than thecompetition in those mar$ets% #advantage&%


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Strategy


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Cost or Price a$e the /roduct or 0eliver the Service 1heap

Quality a$e a 2reat /roduct or 0eliver a 2reat Service

Delivery Speed a$e the /roduct or 0eliver the Service 3uic$ly Delivery )elia"ility

0eliver It !hen /romised Coping wit# C#anges in Demand

1hange Its 4olume Fle*i"ility and +ew Product ,ntroduction Speed

1hange It Ot#er Product-Specifc Criteria

Support It


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.rade-o/s

For example, if we reduce costs by reducing productuality inspections, we might reduce product uality.

For example, if we improve customer service problem

solving by cross!training personnel to deal with a wider!range of problems, they may become less efficient at

dealing with commonly occurring problems.

Cost

Quality

DeliveryFlexibility


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Plant-wit#in-a-Plant-,

6he plant layout has regions that become,essentially, standalone factories. 7ach has #at

least substantially& its own area andinfrastructure such as maintenance, purchasingand engineering.


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Plant-wit#in-a-Plant-,,

0*ample

6wo ma8or product lineshad conficting demands

from customers andcon9icting demands on thefactory*s infrastructure.

In addition, one of theproduct lines had highly

dissimilar processes. 6hefactory was split into three:ocused :actories, asshown.


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Order Qualifers and Winners

Order qualiers are the basic criteria thatpermit the rms products to be considered as

candidates for purchase by customers

Order winners are the criteria thatdi)erentiates the products and services of onerm from another


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Service 1reakt#roug#s

A"rand name can "e an2order 3ualifer4

)epair services can "e2order winners4

0*amples5 Warranty6

)oadside Assistance67eases6 etc


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8aplan and +orton9s :enericStrategy !ap-,

Financial Perspective

.#e Productivity Strategy is generally

made up rom two components5 ,mprove cost structure5 7ower direct and

indirect costs

,ncrease asset utilization5 )educe working

and f*ed capital


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8aplan and +orton9s :enericStrategy !ap-,,


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8aplan and +orton9s :enericStrategy !ap-,,

)evenue :rowt# Strategy

made up from two components

Build the franchise 0evelop new sources ofrevenue

Increase customer value !or$ with existing

customers to expand relationships with company


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.#e Productivity Strategy is generally

made up rom two components5 ,mprove cost structure5 7ower direct and

indirect costs

,ncrease asset utilization5 )educe working

and f*ed capital


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.#e Productivity Strategy is generally made up romtwo components5

,mprove cost structure5 7ower direct andindirect costs

,ncrease asset utilization5 )educe workingand f*ed capital


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8aplan and +orton9s :enericStrategy !ap-,cult to replicate and

provide a"ilities to master new tec#nologies


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Productivity .otal and Partial

A common measure on how well resources are "eingused&

Defned as t#e ollowing ratio5 Outputs

,nputs

.otal Productivity ? Outputs ,nputs

or ? :oods and services produced

All resources used

Partial Productivity ?Output or Output or Output or Output

7a"or Capital !aterials 0nergy


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!ultiactor Productivity

!ultiactor Productivity ?

Output &

7a"or @ Capital @ 0nergy

or

Output & 7a"or @ Capital @ !aterials


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0*ample

Answer5

7ast week9s productivity ? GIB ? &B&

.#is week9s productivity is ? EIB ? &B;&

So6 productivity #as decreased slig#tly&


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OM Chapter 2 Spring 2014 (2)

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