Chapter 2 - Competiveness, Strategy, and Productivity Flashcards
Competitiveness
the ability and performance of an organization in the market compared to other organizations that offer similar goods or services.
Strategy
The long-term plans that determine the direction an organization takes to become (or remain) competitive.
Strategic planning
the managerial process that determines a strategy for the organization and implements it through allocation of resources and action plans.
Productivity
a measure of productive use of resources
what are the key purchasing criteria factors?
Price
Quality
Variety
On-Time
Order Qualifiers
the competitive standard characteristics of a product or service that cause it to be viewed for purchase by a consumer.
Order winners
The characteristics that distinguish the product or service from others to be more competitive and better for a customer and win the customer’s purchase
What are the four competitive priority factors
1) Cost
2) Quality
3) Flexibility
4) On-Time & Reliable Delivery
What are the three basic business strategies?
1) Low cost
2) Responsiveness
3) Differentiation from competitors
What are some examples of different strategies an organization might choose?
1) Low Cost
2) Scale-Based strategies
3) Specialization
4) Newness
5) Flexible operations
6) High Quality
7) Service
8) Sustainability
Low Cost
Outsource operations to third world countries that have low labour costs
Scale-based strategies
Use Capital-intensive methods to achieve high output volume and low unit costs
Specialization
Focus on narrow product lines or limited service to achieve higher quality
Newness
Focus on innovation to create new products or services
Flexible operations
Focus on quick response and/or customization
High quality
Focus on achieving higher quality than competitors
Service
Focus on various aspects of service (e.g. helpful, courteous, reliable, etc.
Sustainability
Focus on environmentally friendly and energy-efficient operations
Operations strategy
Comprises a set of well coordinated policies, objectives, and action plans, directly affecting the operations function, which is aimed at securing a long-term sustainable advantage over the competition.
What are the 9 strategic decision categories?
1) Facility
2) Capacity
3) Vertical integration/outsourcing
4) Supplier relationship/partnership
5) product mix and new products
6) production process types and technology
7) human resources
8) quality
9) operations infrastructure and systems
How does the formulation of an operations strategy look like?
1) Link the organizational goals
2_ categorize/segment the customers into types
3) Group product lines into types
4) Conduct an operations audit to determine the strengths/weaknesses of the current operations strategy
5) For a multi-plan corporation, assess the degree of focus at each plan
6) Develop an operations strategy and reallocate product liens to plants if necessary.
What are the 5 generic operations strategies?
1) Low labour-cost strategy
2) Scale-based strategy
3) focused factories strategy
4) Flexible factories strategy
5) Continuous improvement strategy.
Enterprise resource planning
also known as enterprise software, ERP is used to manage and coordinate all the resources, information, and functions of an organization from a shared database.
Quality based strategy
focuses on improving the quality of an organization’s goods or services
Time-based strategy
focuses on reducing the time required to accomplish various activities
Supply chain strategy
specifies how to cooperate with the organization’ supply chain to achieve supply chain goals and to be competitive.
Sustainability strategy
refers to the plans developing a sustainability vision to the level of organizational governance, which includes formulating goals for products and services, processes, and the entire supply chain.
balanacced scorecard
top-down management strategic planning system that organizations can use to clarify their vision and strategy and transform them into action .
What are the 9 steps in strategic planning?
1) Get started
2) Analyze the industry and source of competitive advantage
3) analyze customers
4) analyze competitors
5) assess our relative position
6) assess the state of our business
7) develop and evaluate alternative strategies
8) choose and refine the recommended strategy
9)identify major actions and implement them.
what are some examples of partial productivity measures
labour productivity
machine productivity
material productivity
energy productivity
What are some factors that affect productivity?
Methods
Management
Equipment
Technology
Labour
Value =
Value = Benefit (Quality, Timeliness, Variety)/Price (cost)