...Chapter 02 Strategy and Sustainability True / False Questions 1. | An operations and supply chain strategy must be integrated with the organization's corporate strategy. True False | 2. | One of the competitive dimensions that form the competitive position of a company when planning their strategies is cost. True False | 3. | One of the competitive dimensions that form the competitive position of a company when planning their strategies is delivery speed. True False | 4. | One of the competitive dimensions that form the competitive position of a company when planning their strategies is making the best trade-off. True False | 5. | The process when a company seeks to match the benefits of a successful position while maintaining its existing position by adding new features, services, and technologies into its current portfolio is called flexibility. True False | 6. | The process when a company seeks to match the benefits of a successful position while maintaining its existing position by adding new features, services, and technologies into its current portfolio it is called straddling. True False | 7. | By following a straddling strategy, firms can broaden their capabilities and effectively compete with more focused firms in markets requiring low cost for success. True False | 8. | An order winner is a set of criteria that differentiates the products or services of one firm from...
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...Competitiveness, Strategy, and Productivity McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. You should be able to: 1. List the three primary ways that business organizations compete 2. Explain five reasons for the poor competitiveness of some companies 3. Define the term strategy and explain why strategy is important 4. Discuss and compare organization strategy and operations strategy, and explain why it is important to link the two 5. Describe and give examples of time-based strategies 6. Define the term productivity and explain why it is important to organizations and countries 7. Provide some reasons for poor productivity and some ways of improving it Instructor Slides 2-2 Better quality, higher productivity, lower costs, and the ability to respond quickly to customer needs are more important than ever and… the bar is getting higher Instructor Slides 2-3 This chapter focuses on three separate, but related that are vitally important to business organizations Competitiveness Strategy Productivity Instructor Slides 2-4 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 customer needs best be satisfied? Instructor Slides 2-5 Identifying...
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...OPERATIONS MANAGEMENT -TOPICS & EXAMPLES What Is Operations and Supply Chain Management? 1-2 The design, operation, and improvement of the systems that create and deliver the firm’s primary products and services ¨ Operations and supply chain management (OSCM) is ¨ ¤ A functional field of business ¤ Concerned with the management of the entire production/delivery system Goods versus Services 1-3 Goods Services Pure Goods Core Goods Core Services Pure Services Tangible Less interaction with customers Often homogeneous Not perishable – can be inventoried Intangible Interaction with customer required Inherently heterogeneous Perishable/time dependent Defined and evaluated as a package of features Importance 1-4 ¨ Regardless of the type of organization, they all must ‘do’ operations management because all of them exist to produce some mixture of products and services. ¤ Even if the term “operations management” is not used Operations management decisions have a major impact on both the cost of producing products or services and how well the products and services are produced and delivered (which in turn impacts profits) ¨ In the non-profit sector, quality services that are delivered efficiently provide greater value to the community ¨ Operations and Supply Chain Processes 1-5 Operations Manufacturing and service processes used to transform resources into products Supply Chain Processes that...
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...UNIT 1 i Introduction to operations management Unit 1 BLC 301/05 Operations Management Introduction to Operations Management ii WAWASAN OPEN UNIVERSITY BLC 301/05 Operations Management COURSE TEAM Course Team Coordinator: Ms. Loo Saw Khuan Content Writer: Dr. Quah Hock Soon Instructional Designer: Ms. Koh Kah Ling Academic Members: Dr. Chuah Poh Lean and Mr. Chong Fook Suan COURSE COORDINATOR Ms. Loo Saw Khuan EXTERNAL COURSE ASSESSOR Associate Professor Dr. Lim Kong Teong, Universiti Utara Malaysia PRODUCTION Editor: Penerbitan Pelangi Sdn. Bhd. In-house Editor: Ms. Koh Kah Ling Graphic Designer: Ms. Audrey Yeong Wawasan Open University is Malaysia’s first private not-for-profit tertiary institution dedicated to adult learners. It is funded by the Wawasan Education Foundation, a tax-exempt entity established by the Malaysian People’s Movement Party (Gerakan) and supported by the Yeap Chor Ee Charitable and Endowment Trusts, other charities, corporations, members of the public and occasional grants from the Government of Malaysia. The course material development of the university is funded by Yeap Chor Ee Charitable and Endowment Trusts. © 2008 Wawasan Open University First revision 2013 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission from...
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...Operational efficiency is performing operations tasks well, even better than competitors. Strategy, on the other hand, is a plan for competing in the marketplace. Operational efficiency and strategy must be aligned; otherwise, you may be very efficiently performing the wrong task. The role of operations strategy is to make sure that all the tasks performed by the operations function are the right tasks. These include developing an understanding of what business the company is in (the company’s mission), analyzing and developing an understanding of the market (environmental scanning), and identifying the company’s strengths (core competencies). _Mission A statement defining what business an organization is in, who its customers are, and how its core beliefs shape its business. Environmental scanning Monitoring the external environment for changes and trends to determine business opportunities and threats. What Does Environmental Scanning Tell Us? Environmental scanning allows a company to identify opportunities and threats. For example, through environmental scanning we could see gaps in what customers need and what competitors are doing to meet those needs. forming partnerships with international firms, called strategic alliances _Core competencies The unique strengths of a business. Core Competencies The third factor that helps define a business strategy is an understanding of the company’s strengths. These are called core competencies...
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...Portland Plant Recommendation – The Three Muses Nate Bisantz, Andrew Ferguson, Aaron Linamen, Trad Norris, Ryan Huber, Bruce Hagan and Laurinda Metz Brandman University Author Note This paper was prepared for Operations Management, MGTU 315, Brandman University Dr. Charles Muse Instructor. Table of Contents Abstract……………………………………………………………………………………………3 Operations Strategy and Performance…………………………………………………………….4 Time-Line…………………………………………………………………………………4 Objectives…………………………………………………………………………………5 Operations and Design……………………………………………………………………………6 Identify & Describe “Process Type” ; Inputs & Outputs…………………………………6 Map the Process…………………………………………………………………………..7 Core Competency………………………………………………………………………...8 Forecast Method………………………………………………………………………….8 Design Process Layout…………………………………………………………………...9 Organization Type……………………………………………………………………….9 Cross Functional Team………………………………………………………………….10 Planning and Control……………………………………………………………………………10 Explain “Drum, Rope, Buffer”………………………………………………………….10 Document “Drum, Rope, Buffer”……………………………………………………….11 Push or Pull Models……………………………………………………………………..11 Quality Approach………………………………………………………………………..12 Corporate Social Responsibility Statement……………………………………………...13 Conclusion……………………………………………………………………………………….13 Recommendations……………………………………………………………………………….14 References……………………………………………………………………………………….15 Appendix………………………………………………………………………………………...16 Abstract The Portland Plant...
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...THE USE OF OPERATIONS OBJECTIVES AND PERFORMANCE MEASURES IN PRIVATE AND PUBLIC ORGANIZATIONS White Paper February 15, 2010 Prepared for: Federal Highway Administration Federal Transit Administration FHWA-HOP-10-029 Quality Assurance Statement The Federal Highway Administration (FHWA) provides high-quality information to serve Government, industry, and the public in a manner that promotes public understanding. Standards and policies are used to ensure and maximize the quality, objectivity, utility, and integrity of its information. FHWA periodically reviews quality issues and adjusts its programs and processes to ensure continuous quality improvement. Technical Report Documentation Page 1. Report No. FHWA-HOP-10-029 4. Title and Subtitle The Use of Operations Objectives and Performance Measures in Private and Public Organizations White Paper 7. Authors Jocelyn Bauer, Kelley Pecheux, Michael Smith, Zachary Fletcher 9. Performing Organization Name and Address Science Applications International Corporation (SAIC) 8301 Greensboro Drive McLean, VA 22102 12. Sponsoring Agency Name and Address United States Department of Transportation Federal Highway Administration 1200 New Jersey Ave., SE Washington, DC 20590 15. Supplementary Notes Mr. Richard Backlund, Federal Highway Administration, COTM 16. Abstract This paper examines lessons and insights from private companies and public organizations that may apply to agencies in the United States working to advance transportation...
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...Organisational control Control: track progress: -employees * Product * Strategies * Goals Control means reviewing, monitor, check * Managers monitor and regulate how efficiently and effectively an organisation and its members are performing the activities necessary to achieve organisational goals. * Managers keep an organisation on track, anticipate events, and change the organisation to respond to opportunities and threats Control systems Flexible because environment change Timely manner: for eg a 6 weeks reviews: will track, check and have reviews * Control systems are formal, target-setting, monitoring, evaluation and feedback systems that provide managers with information about how well the organisation’s strategy and structure are working. * A good control system should: * be flexible so managers can respond as needed * provide accurate information about the organisation * provide information in a timely manner. Example: Bank Input: money, customers, employees Conversion; transaction:debit, deposit, others, loan Output: delivered service, customers staified/ unsatisfied. EG 2: Cars Input: equipment,machines, raw materials, skills, employees, funds Conversion: car assembled Output: car What is control in each part: Input; quality, quantity of raw materials Skills of employees Conversion: -going it in a right manner, time Output: number, did imet the demand, satisfied the customers ThThree types...
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...Change for Strategy Execution Dr. Robert S. Kaplan Baker Foundation Professor, Harvard Business School Executing strategy: Senior executives’ #1 issue The Balanced Scorecard: The Central Component in a New Strategy Execution Management System Private Sector Organizations Financial Perspective "If we succeed, how will we look to our shareholders?” Customer Perspective "To achieve our vision, how must we look to our customers?” Process Perspective "To satisfy our customers and shareholders, at which processes must we excel?” Non Profit and Public Sector Organizations Mission (Customer) Perspective “How do we have a social impact with our citizens/constituents?” Support Perspective “How do we attract resources and authorization for our mission?” Process “To have a social impact and to attract resources and support, at which processes must we excel?” Learning & Growth “How do we align our intangible assets to improve critical processes?” Learning & Growth “How do we align our intangible assets to improve critical processes?” Financial “How should we manage and allocate our resources for maximum social impact?” 3 Palladium Balanced Scorecard Hall of Fame for Executing Strategy® : By Industry 2000-2010 The Management System for Strategy Execution Links Vision and Strategy to Operational Excellence 2 TRANSLATE THE STRATEGY DEVELOP THE STRATEGY • Mission, Values, Vision • Strategic Analysis • Strategy Formulation 1 • • • • Strategy Map / Themes...
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...Summary 4 3 Situation analysis 5 3.1 Company overview 5 3.2 Evaluation of Process Management approach at D2D 6 3.3 Evaluation of Just in Time (JIT) techique 10 3.4 Benchmarking 11 3.5 SWOT Analysis 12 4. RECOMMENDATIONS 13 Creating a value system: 14 Development of a Strategy Map 15 Reviewing the Organisational Strategy 15 Organisational Performance 16 5. Conclusion 18 6. Bibliography 19 EXECUTIVE SUMMARY The author conducted a situation analysis for D2D through analysing the approach to process management followed by D2D as well as the quality improvement techniques used by D2D. The analysis revealed the following: * Process Management at D2D- The approach followed by the company is very effective as every process is controlled and measured. This is applicable to all areas within D2D. However, the author is of the opinion that D2D should avoid implementing to many control systems to avoid their employees losing focus. It was also not clear what D2D’s market strategy; if any entails. * Just in Time (JIT) technique – The author found that certain elements such as Lead time reduction; flexible workforce and the required supplier quality assurance and implement a zero defects quality programme were being implemented at D2D. The author is however of the opinion that this is sufficient and that there is no need for D2D to implement additional elements of JIT. * Benchmarking – The assessment showed that D2D is very serious about benchmarking with several...
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...objectives of operations management (quality, speed, dependability, flexibility and cost) used to describe the operation’s strategies of McDonald, how they are implemented and how they support the organisation’s competitive or effectiveness priorities. Indicate the means of measuring the success of operations management (KPI’s). - RISHI GUPTA Introduction Operations management is important in every organisation and any company which offers any products or services must use a resource to do so. This resource utilisation is referred as an operations activity. To perform this companies needs to devise an operations strategy and these strategies aims at changing the inputs into outputs by using the input-transformation-output process. This basically is a set of processes that takes in a set of input resources, transforms something or itself to deliver output of products and services. (Slack et al., 2010). In this project we have discussed the five objectives of operations management (quality, speed, dependability, flexibility and cost) to describe the operation’s strategies of McDonald’s, the fast food chain. The discussion entails how McDonald’s have successfully e implemented these objectives and and how they support the organisation’s competitive or effectiveness priorities. McDonalds Positioning In this highly competitive food chain business, McDonalds wants to position itself as offering a high volume, fast and courteous customer service, quality controlled,...
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...Michael DMBA 620 Week 9 Executive Summary Operational Efficiency, Operational Effectiveness, Operations Strategy, and Operational Sustainability are core concepts that help ensure an organization succeeds today, and into the future. Operational efficiency ensures businesses offer consumers the best products or services at the lowest costs possible. Operational effectiveness asks the questions of what, and how much resources are required in producing a product or service. Operational strategy sets the tone by establishing what will be produced and how this will occur, all correlated with the organizations overall strategy and vision. Operational sustainability ensures that an organization has staying power in the market by making necessary adjustments to keep up “with the times”. All play a paramount role in realizing success in the market. Further, Six Sigma, a process improvement discipline, helps organizations remove redundancy in processes as well as waste. This helps ensure sustainability for an organization. Operational Efficiency: is defined as a business’ ability to offer customers the best products and/or services at the lowest possible cost. Several organizations utilize “industry best practices” in order to streamline (lean) core business processes allowing them to react swiftly to changes in the market. Businesses also for corporate alliances in order to ensure/promote efficiency, this falls back to previous week’s assignments as we learned that just because you...
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...Asia, Penang Mutiara have successfully managed to position itself as one of the most prominent hotel in this highly competitive industry. It is apparent that the hotel’s management has set a clear vision that recognizes the importance of well managed operations; that assures providing first class services for their demanding customers. Penang Island has always been a popular tourist destination; according to (1) the island attracted 5.96 million tourists, ranking third in tourist arrivals in Malaysia in 2009. And considering neighbouring competitors that are embracing similar pricing and service strategies; like Eastern & Oriental, and Shangri-La's Rasa Sayang Resort (2), Penang Mutiara intends to provide flawless quality of services, and to align its strategy with its customers’ needs, in order to provide a value-added personal experience that revives customer’s retention. The Penang Mutiara management has implemented a perfect service quality strategy that the lean on to gain competitive advantage: “it is impeccable service which gives us our competitive advantage, not price.” The hotel invests on resources to retain regular guests rather than attracting new ones; by means of providing impeccable quality of services. This strategy guarantees maintaining high occupancy levels; which in turn saves costs, while attaining reasonable profitability. In order to achieve that, Penang Mutiara hotel management draw some basic standards for its staff. They have to treat guests with at most...
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...Journal of Operations Management 17 Ž1999. 411–428 Manufacturing technology and strategy formulation: keys to enhancing competitiveness and improving performance Michael Tracey a , Mark A. Vonderembse a b,) , Jeen-Su Lim b Purdue UniÕersity, West Lafayette, Indiana 47907, USA b UniÕersity of Toledo, Toledo, OH 43606-3390, USA Received 1 July 1997; accepted 23 July 1998 Abstract Porter wPorter, M.E., 1996. What is strategy? Harvard Business Review 74 Ž6., 61–78.x claims that a proper link between strategy and manufacturing operations is a key to developing sustainable competitive advantage. To be successful in this globally competitive, rapidly changing environment, organizations must formulate strategic plans that are consistent with their investment in and use of manufacturing technology. This study proposes that organizations that invest in advanced manufacturing technology and develop mechanisms for manufacturing managers to participate in strategy formulation will have improved competitive capabilities and better performance than firms that do not. Using the result from a large-sample survey, this study develops valid and reliable measures of advanced manufacturing technology and manufacturing managers’ participation in strategy formulation as well as the competitive capabilities of a firm. Linear structural equation analysis ŽLISREL. results show that the relationships between a firm’s practices in these two areas and its competitive capabilities are found...
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... ORGANIZATIONAL APPRAISAL Organization behaviour Identity & character of an organization leadership, Mgt. Philosophy, values, culture, Qly of work environment, Organization climate, organization politics etc. Resource Behaviour Distinctive competence - Any advantage a company has over its competitor - it can do something which they cannot or can do better - opportunity for an organization to capitalize - low cost, Superior Quality, R&D skills etc. METHODS & TECHNIQUES USED FOR ORGANIZATIONAL APPRAISAL Comprehensive, long term Financial Analysis - Ratio Analysis, EVA, ABC Key factor rating - Rating of different factors through different questions Value chain analysis VRIO framework METHODS & TECHNIQUES USED FOR ORGANIZATIONAL APPRAISAL « BCG, GE Matrix , PIMS, McKinsey 7S Balanced Scorecard Competitive Advantage Profile Strategic Advantage profile Internal Factor Analysis Summary SWOT ANALYSIS Identify & classify firm¶s resources-S&W Combine firm¶s strength into specific capabilities ± Corporate capability- may be distinctive competence Strategy that best exploits the firms resources Identify resource gaps & Invest in upgrading ORGANIZATIONAL APPRAISAL Organizational Capability Profile (OCP) - Weakness(-5), Normal(0), Strength(5) Financial Capability Profile (a) Sources of funds (b) Usage...
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