01: POM basics

Question 1

Defining operations management

Answer 1

Operations management can be defined as:

the activity of managing the resources of the organization that deliver goods and services.

Question 2

Explain and use the SIPOC model

Answer 2

within the firm:

• Supplier
• Information
  
  • INPUTS = Suppliers’ products & services («raw materials»)
  • Process
  • OUTPUTS = Products and services
• Customer
• in the value

SIPOCs can be chained, within the firm and between firms!

Question 3

The process in SIPOC uses these 4(+1) resources:

Answer 3

1. people (men)
2. machines
3. materials
4. methods
5. (money)

Question 4

Explain how operations contribute to competitiveness, analyzing ROI as =1+1=2+4

Answer 4

• ROI
• profits /
  
  • • revenues <– customer service
  • • costs <– logistics & production efficiency
• / capital employed
  
  • cash <– accuracy & speed of fulfilment & delivery
  • accounts receivables <– delivery
  • inventory <– inventory mgmt
  • fixed assets <– asset deployment & utilization

Question 5

Two strategic perspectives: Marked-based vs. Resource-based

Answer 5

• Resource-based
  Starts with: « What can we offer to the customer?»
  >> SW
• Market-based
  Starts with: «What does the customer want?»
  ​>> OT + environmental analysis + Porter’s 5 forces
• Although the two perspectives differ, they complement each other. Both should be used in «real life»,
  to find gaps

Question 6

Explain competitive priorities versus competitive capabilities

Answer 6

competitive priorities <– what market needs and wants

competitive capabilities <– what we can deliver, based on current resources and processes

Question 7

Order qualifiers vs. Order winners

Answer 7

 An order qualifier is a required capability (or product/ service characteristics) for selling, but will not win orders
eg Compliance to standards in food industries

 An order winner is a capability (or product/ service characteristics) that can win you orders
eg Taste in food industries

Question 8

competitive priorities & capabilities: 4+8

Answer 8

4 original:

• Cost
• Quality
• Delivery
• Flexibility

8 disperss

• Dependability
• Innovation
• Service
• Personalization
• Environment
• Responsibility
• Safety
• Speed