session 02 [compatibility mode]

7/30/2019 Session 02 [Compatibility Mode]

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Session 2

A Framework for

Competitive Dimensions

Order Qualifiers and Winners

Manufacturing Strategy

Service Strategy CapacityStrategy Design Process apa es

Productivity Measures


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Operat ions St ra t egy

Customer Needs More Product

orpora e ra egyIncrease Org. Size

Operations Strategy Increase Production Capacity

Decisions on Processes


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Com pet i t i ve Dim ensions Cost or Price

Make the Product or Deliver the Service Cheap

Quality

Delivery Speed Make the Product or Deliver the Service Quickly

Delivery Reliability Deliver It When Promised

Change Its Volume

Flexibility and New Product Introduction Speed Change It

Other Product-Specific Criteria


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Deal ing w i t h Trade-of fsFor exam le if we reduce costs b reducin roductquality inspections, we might reduce product quality.

Cost

For example, if weimprove customer

DeliveryFlexibilityv vby cross-training

Quality

wider-range of

problems, they maybecome less efficient atdealing with commonly

.


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PWP Concept diff locations within theac ty are a ocate to pro uct nes,

each with their own opn. Strategy.

ra ng w en a company see s omatch the benefits of a successful position.


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Order Qual i f iers and Winners

Order qualifiersare the basic criteria that

as candidates for purchase by customersOrder winnersare the criteria thatdifferentiates the roducts and services of

one firm from another

A brand name car can be an order qualifier

Repair services can be order winners

Examples: Warranty, Roadside Assistance,

Leases, etc


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y

Financial Perspective Improve Shareholder Value

Internal Perspective Build-Increase-Achieve

Learning and Growth Perspective A Motivated and Preparedor orce


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Operat ions St ra t egy Fram ew ork

Customer Needs

New product : Old product

dimensions & requirements

Quality, Dependability, Speed, Flexibility, and Price

Operations & Supplier capabilities

R&D Technology Systems People Distribution

Enterprise capabilities

Operations and Supplier Capabilities

R&D Technology Systems People Distribution

Support Platforms

Financial mana ement Human resource mana ement Information mana ement


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St eps in Developing a

1. Segment the market according to the product group

2. Identify product requirements, demand patterns,an pro marg ns o eac group

3. Determine order qualifiers and winners for each

4. Convert order winners into specific performance


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erv c e t rat egy apac t yi l i i

Process-based Capacities that transforms material or information

and provide advantages on dimensions of cost andquality

Systems-based Capacities that are broad-based involving the entire

o eratin s stem and rovide advanta es of shortlead times and customize on demand

Organization-based

abilities to master new technologies


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What is Produc t iv i t y?

e n eProductivit is a common measure onhow well resources are being used. In

,the following ratio:

Inputs

Total Measure Productivity = Outputs

Inputsor

= Goods and services produced

All resources used


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=Output or Output or Output or Output Labor

Capital Materials Energy

Mult i fac t or Measure Produc t iv i t y

Multifactor measures of roductivit =

Output .Labor + Ca ital + Ener

orOutput .

Labor + Ca ital + Materials


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Ex am ple o f Produc t iv i t y

You have just determined that your serviceemployees have used a total of 2400 hours of labor

this week to process 560 insurance forms. Lastw w u y uto process 480 forms.

Answer: Could be classified as a Total Measure or.

Is productivity increasing or decreasing?

. ,and this weeks productivity is = 560/2400 = 0.23.So, roductivit is decreasin sli htl .


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Quest ion Bow l

. n opera ons s ra egy s

concerned with which of thefollowing?

a. Settin s ecific olicies and lansb. Short-term competitive strategies.

d. All of the abovee. one o e a ove


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Quest ion Bow l

2. Typically a strategy breaks down

into what ma or com onents?a. Operations effectiveness

. c. Production innovationd.

e. None of the above


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Quest ion Bow l. cr er on a eren a es e

products and services of one firmrom ano er can e w c o efollowing?

a.

n or er qua erb. An order winnerc.

d. KPIe.


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Quest ion Bow l

4. A travel agency processed 240 customers on Day

,

2 with a staff of 15. What can be said about the

a. An increase in productivity from Day 1 to Day 2

b. A decrease in roductivit from Da 1 to Da 2

c. The same productivity from Day 1 to Day 2d. Can not be computed from data above

e. None of the above


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Quest ion Bow l

5. In addition to traditional financial measures,

wh t riti l u ti n n B l n d

Scorecard help a company answer?

a. How do customers see us?

b. What must we excel at?c. How can we continue to improve and create

value?

d. All of the abovee. None of the above


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End of Sess ion 2


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Problem 3

Various Financial data for 2004 & 2005 follow.Calculate the total productivity & partialmeasures for labour, capital & raw materials for

this company for both years. What do thesemeasures tell you about this company?

Output: Sales Rs. 200,000 Rs. 220,000

npu : a our , ,

Raw Mat. 35,000 45,000Energy 5,000 6,000

Other 2,000 3,000


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Problem 4An electronics company makes

contracts. The company just completedtwo contracts. The navy contact was for,

weeks ( 40 hours/ week) to complete. Thearmy contract was for 5,500 devices that

On which contract were the workers more

pro uc ve

session 02 [compatibility mode]

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