Bài giảng Operations Management - Chapter 2 Competitiveness, Strategy, and Productivity

Competitiveness, Strategy, and ProductivityChapter 2Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.You should be able to:LO 2.1 List several ways that business organizations competeLO 2.2 Name several reasons that business organizations failLO 2.3 Define the terms mission and strategy and explain why they are importantLO 2.4 Discuss and compare organization strategy and operations strategy, and explain why it is important to link the twoLO 2.5 Describe and give examples of time-based strategiesLO 2.6 Define the term productivity and explain why it is important to organizations and to countriesLO 2.7 Describe several factors that affect productivityChapter 2: Learning ObjectivesCompetitivenessCompetitiveness:How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or servicesOrganizations compete through some combination of their marketing and operations functionsWhat do customers want?How can these customer needs best be satisfied?LO 2.1Product and service designCostLocationQualityQuick responseFlexibilityInventory managementSupply chain managementServiceManagers and workersBusinesses Compete Using OperationsLO 2.1Neglecting operations strategy Failing to take advantage of strengths and opportunities and/or failing to recognize competitive threatsToo much emphasis on short-term financial performance at the expense of R&DToo much emphasis in product and service design and not enough on process design and improvementNeglecting investments in capital and human resourcesFailing to establish good internal communications and cooperationFailing to consider customer wants and needsWhy Some Organizations FailLO 2.2MissionThe reason for an organization’s existenceIt answers the question “What business are we in?”GoalsProvide detail and the scope of the missionGoals can be viewed as organizational destinationsStrategyA plan for achieving organizational goalsServes as a roadmap for reaching the organizational destinationsThe organizational strategy guides the organization by providing direction for, and alignment of, the goals and strategies of the functional unitsThe organizational strategy is a major success/failure factorMission, Goals, and StrategyLO 2.3Effective strategy formulation requires taking into account:Core competenciesEnvironmental scanningSWOTSuccessful strategy formulation also requires taking into account:Order qualifiersOrder winnersStrategy FormulationLO 2.4Operations StrategyOperations strategy The approach, consistent with organization strategy, that is used to guide the operations function.LO 2.4Strategic OM Decision AreasDecision AreaWhat the Decisions AffectProduct and service designCosts, quality, liability, and environmental issuesCapacityCost, structure, flexibilityProcess selection and layoutCosts, flexibility, skill level needed, capacityWork designQuality of work life, employee safety, productivityLocationCosts, visibilityQualityAbility to meet or exceed customer expectationsInventoryCosts, shortagesMaintenanceCosts, equipment reliability, productivitySchedulingFlexibility, efficiencySupply chainsCosts, quality, agility, shortages, vendor relationsProjectsCosts, new products, services, or operating systemsLO 2.4Time-based strategiesStrategies that focus on the reduction of time needed to accomplish tasksIt is believed that by reducing time, costs are lower, quality is higher, productivity is higher, time-to-market is faster, and customer service is improvedTime-Based StrategiesLO 2.5Areas where organizations have achieved time reductions:Planning timeProduct/service design timeProcessing timeChangeover timeDelivery timeResponse time for complaintsTime-Based StrategiesLO 2.5LO2.6 ProductivityProductivityA measure of the effective use of resources, usually expressed as the ratio of output to inputProductivity measures are useful forTracking an operating unit’s performance over timeJudging the performance of an entire industry or countryLO 2.6Productivity MeasuresLO 2.6Service sector productivity is difficult to measure and manage becauseIt involves intellectual activitiesIt has a high degree of variabilityA useful measure related to productivity is process yieldWhere products are involvedratio of output of good product to the quantity of raw material input. Where services are involved, process yield measurement is often dependent on the particular process: ratio of cars rented to cars available for a given day ratio of student acceptances to the total number of students approved for admission.Service Sector ProductivityLO 2.6Factors Affecting ProductivityCapitalMethodsTechnologyManagementQualityLO 2.7