1 irwin a times mirror higher education group, inc. company, 1996 recap productivity...

1IRWIN

a Times Mirror Higher Education Group, Inc. company, 1996

Recap

• Productivity definitionProductivity definition

• Factors effecting productivityFactors effecting productivity

• Single factor productivitySingle factor productivity

• Multifactor productivityMultifactor productivity

• Productivity MeasurementProductivity Measurement

• Productivity analysis in enterprises Productivity analysis in enterprises

• ProblemsProblems

2IRWIN


COMPETITIVENESS and STRATEGY

Lecture

3

3IRWIN


Lecture Outline Competitiveness Dimension of Competitiveness Important Concepts Strategy Elements of Strategy Competitive advantage OM contribution to strategy Operations Strategy

4IRWIN


Competitiveness

Competitiveness is process by which one entity strives to outperform another.

The allocation of resources to obtain the organization's long term objectives in the most efficient and effective way.

Competitiveness depends on productivity

5IRWIN


Dimensions of Competitiveness

Quality

Price

Time

Flexibility

Differentiation

How Organization Compete against each otherHow Organization Compete against each other

Managers

and

Workers

6IRWIN


Indicators of Competitiveness

Productivity: Productivity is efficiency and effectiveness with which goods & services are produced & provided.

Innovation involves the creation of product, service or process that is new to an organization

• Product Innovation • Process Innovation• Incremental• Radical• Technological Innovation

7IRWIN


New Competitiveness Paradigm

Change in competitiveness focus all over world from:

Product competitiveness to process competitiveness

From process competitiveness to structure/society competitiveness

8IRWIN


Competitive Advantage

Types of competitive advantages a

nation's companies enjoy must shift

from comparative advantage (low

cost labor or natural resources) to

competitive advantages due to

unique products or processes.

9IRWIN


Lack of competitiveness is leading to: reducing sales Stagnation in business Underutilization of Capacities & low productivity

..

Low Competitiveness -Drawbacks

10IRWIN


Important Concepts

Policy-Guideline for decision making Rule-Dos and Donts Strategy-Comprehension plan to achieve

mission Procedure-Steps in chronological order to

achieve Mission

– The reason for existence for an organization– A clear statement of purpose

Vision-Where you want to see your organization in future

11IRWIN


Elements of Strategy

Scope Goals/Objectives Resource Deployment Synergy Sustainable Competitive Advantage

12IRWIN


Strategy, Tactics and Operations Strategy (To do)

– Plan for achieving organizational goals– Long term focus (road map)– Organizational vs. functional (Hierarchical)

Tactics (How to)– Actions and methods to accomplish

strategies – Short term focus

Operations (Doing)– Day-to-day execution

13IRWIN


Strategy ExampleYou are a business student at COMSATS Institute of Information Technology . You would like to have a career in business, have a good job, and earn enough income to live comfortably

Mission: Live a good life Goal: Successful career, good income. Strategy: Obtain a Business Degree from

COMSATS Tactics: Select a business field of your interest

and high market value. Operations: Register

Buy booksTake courses StudyGraduateApply & get job

14IRWIN


Quality and Time Strategies

Quality-based strategies– Focuses on quality in all

phases of an organization

– Quality at the source

Time-based strategies– Focuses on reduction of

time needed to accomplish tasks

15IRWIN


OM Strategic Fit for synergyOM Strategic Fit for synergy

Marketing

Strategy

Operations Strategy

Finance

Strategy

Functional Area Strategies

Organization’s Strategy

16IRWIN


SWOT Analysis to Strategy Formulation

PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)

© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 074582-16

Strategy

Mission

ExternalOpportunities

InternalStrengths

InternalWeaknesses

ExternalThreats

CompetitiveAdvantage

17IRWIN


10 Strategic OM Decisions

1. Goods and service design

2. Quality 3. Process and

capacity design4. Location selection5. Layout design

6.6. Human resources Human resources and job designand job design

7.7. Supply chain Supply chain managementmanagement

8.8. InventoryInventory

9.9. SchedulingScheduling

10.10. MaintenanceMaintenance

18IRWIN


Achieving Competitive Advantage through Operations

Differentiation – better, or at least different (uniqueness in physical characteristics or service attributes

Cost leadership – cheaper (doesn’t imply low quality)

Response – (Flexibility, Reliability, rapid response)

OM’s Contribution to Strategy



Quality

Product

Process

Location

Layout

Human Resource

Supply Chain

Inventory

Scheduling

Maintenance

Compaq Computer’s ability to follow the PC market

Differentiation(Better)

Response(Faster)Cost leadership

(Cheaper)

Southwest Airlines No-frills service

Sony’s constant innovation of new products

Pizza Hut’s five-minute guarantee at lunchtimeFederal Express’s “absolutely, positively on time”

Motorola’s automotive products ignition systemsMotorola’s pagers

IBM’s after-sale service on mainframe computers

Fidelity Security’s broad line of mutual funds

FLEXIBILITY

DesignVolume

LOW COST

DELIVERY

SpeedDependability

QUALITY

ConformancePerformance

AFTER-SALE SERVICE

BROAD PRODUCT LINE

Operations Decisions

Examples Specific Strategy Used Competitive

Advantage

20IRWIN




Preconditions -To Implement a Strategy

One must understand:– Competitors and new entrants – Environmental, legal, and economic issues– The notion of product life cycle– Available resources plus distinctive

competencies– Integration of OM strategy with company

strategy and other functions

21IRWIN




Impetus for OM Strategy Change Changes in the organization Stages in the product life cycle Changes in the environment

22IRWIN




Strategy Development and Implementation

Environmental (SWOT) analysis Distinctive competencies Special attributes or abilities Give organization competitive edge Critical success factors Build and staff the organization Deployment - Integration/linkage/alignment

23IRWIN


Operations Strategy

Functional Focus

Linkage and Alignment

24IRWIN


Forthcoming lecture- Managing Quality

1 irwin a times mirror higher education group, inc. company, 1996 recap productivity...

Documents