Competitiveness
How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services
Mission
The reason for the existence of an organization.
Mission statement
States the purpose of an organization. The mission statement should answer the question of "What business are we in?
Goals
Provide detail and scope of the mission.
Strategies
Plans for achieving organizational goals. Org. strategies have a major impact on what the org. does and how it does it. Serves as a road map for reaching the organizational destinations. Orgs. contain both Organizational strategies and Functional level st
Tactics
The methods and actions taken to accomplish strategies. More specific than strategies and they provide guidance and direction for carrying out actual operations. This is the "how to" of the organization.
Operations
The actual "doing" part of the process
Organizational strategies
Overall strategies that relate to the entire organization, support the achievement of organizational goals and mission.
Functional Level Strategies
Strategies that relate to each of the functional areas and that support achievement of the organizational strategy
Core Competencies
The special attributes or abilities that give an
organization a competitive edge. To be effective, core competencies and strategies need to be aligned.
Order Qualifiers
Characteristics that customers perceive as minimum standards of acceptability to be considered as a potential for purchase. What do you have to do to get your foot in the door.
Order Winners
Characteristics of an organization's goods or services that cause it to be perceived as better than the competition, things that set you apart from the competition
Environmental Scanning
The considering of events and trends that present threats or opportunities for a company. Environmental Scanning is needed to identify Internal Factors - Strengths and Weaknesses and External Factors - Opportunities and Threats (SWOT)
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
Operations strategy
The approach, consistent with organization strategy, that is used to guide the operations function.
Time-based strategies
Strategies that focus on the reduction of time needed to accomplish tasks.
It is believed that by reducing time, costs are lower, quality is higher, productivity is higher, time-to-market is faster, and customer service is improved.
Quality-based strategy
Strategy that focuses on quality in all phases of an organization.
Pursuit of such a strategy is rooted in a number of factors (improving quality in everything we touch and do):
Trying to overcome a poor quality reputation
Desire to maintain a quality ima
Productivity
A measure of the effective use of resources, usually expressed as the ratio of output to input
What are productivity measures are useful for?
Tracking an operating unit's performance over time
Judging the performance of an entire industry or country
Why does production matter?
High productivity is linked to higher standards of living
As an economy replaces manufacturing jobs with lower productivity service jobs, it is more difficult to maintain high standards of living
Higher productivity relative to the competition leads to co
Productivity
Productivity = Output/Input
Partial Measures
Output/Single Input ; Output/Labor ; Output/Capital
Multifactor Measures
Output/Multiple Inputs ; Output/Labor + Machine ; Output/Labor +Capital +Energy
Total Measure
Total goods or services produced/All Inputs used to produce them
Productivity Growth
Productivity Growth = ((Current Productivity - Previous Productivity)/Previous Productivity) x 100%
Multifactor Productivity
Output/Labor +Materials +Overhead
How to improve productivity
1. Develop productivity measures that are meaningful, and for all operations
2. Determine critical (bottleneck, things keeping you from improving) operations
3. Develop methods for productivity improvements
4. Establish reasonable goals (doable goals but
Process Yield
A useful measure related to productivity
Service sector productivity
Difficult to measure and manage because:
It involves intellectual activities
It has a high degree of variability
Hierarchical Planning
Mission TO Goals TO Organizational Strategies TO Functional Strategies TO Tactics
Why do some organizations fail?
Neglecting operations strategy
Failing to take advantage of strengths and opportunities
Failing to recognize competitive threats
Too much emphasis in product and service design and not enough on improvement
Neglecting investments in capital and human reso
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
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