more important than ever and... the bar is getting higher
Better quality, higher productivity, lower costs, and the ability to respond quickly to customer needs are what and what is getting higher
How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services
through some combination of their marketing and operations functions
Organizations compete how?
3 factors demonstrating marketing's influence
Identifying consumer wants and/or needs Pricing Advertising and promotion
Product and service design Cost Location Quality Quick response Flexibility Inventory management Supply chain management Service Managers and workers
businesses compete using what 10 key operations?
reasons why some organizations go splat...
Neglecting operations strategy Failing to take advantage of strengths and opportunities Failing to recognize competitive threats Too much emphasis in product and service design and not enough on improvement Neglecting investments in capital and human resources Failing to establish good internal communications and cooperation Failing to consider customer wants and needs
-Overall strategies that relate to the entire organization -Support the achievement of organizational goals and mission
Functional level strategies
Strategies that relate to each of the functional areas and that support achievement of the organizational strategy
The methods and actions taken to accomplish strategies The "how to" part of the process
The actual "doing" part of the process
The special attributes or abilities that give an organization a competitive edge
To be effective core competencies and what need to be aligned?
Core competencies Environmental scanning (SWOT)
"Effective" strategy formulation requires taking what into account: (2)
Order qualifiers Order winners
"Successful" strategy formulation also requires taking what into account: (2)
Characteristics that customers perceive as minimum standards of acceptability to be considered as a potential purchase
Characteristics of an organization's goods or services that cause it to be perceived as better than the competition
Internal Factors External Factors
Environmental Scanning is necessary to identify what 2 things? Hint: think SWOT analysis.
Strengths and Weaknesses
Opportunities and Threats
are all key external factors
Economic conditions Political conditions Legal environment Technology Competition Markets
are all key internal factors
Human Resources Facilities and equipment Financial resources Customers Products and services Technology Suppliers
The approach, consistent with organization strategy, that is used to guide the operations function.
Strategy that focuses on quality in all phases of an organization
Trying to overcome a poor quality reputation Desire to maintain a quality image A part of a cost reduction strategy
Pursuit of a quality-based strategy is rooted in a number of factors: list 3
Strategies that focus on the reduction of time needed to accomplish tasks
reducing time; Time-based strategies
It is believed that by what, costs are lower, quality is higher, productivity is higher, time-to-market is faster, and customer service is improved --as stated by what strategy?
Areas where organizations have achieved time reductions:
Planning time Product/service design time Processing time Changeover time Delivery time Response time for complaints
A strategic approach for competitive advantage that emphasizes the use of flexibility to adapt and prosper in an environment of change
Cost Quality Reliability Flexibility
agile operations involves the blending of several core competencies: list 4
The Balanced Scorecard Approach
A top-down management system that organizations can use to clarify their vision and strategy and transform them into action
Develop objectives Develop metrics and targets for each objective Develop initiatives to achieve objectives Identify links among the various perspectives Monitor results
according to the balanced scorecard approach, what 5 things must one do?
Finance Customer Internal business processes Learning and growth
Identifying links among the various perspectives involves what 4 things?
A measure of the effective use of resources, usually expressed as the ratio of output to input
Tracking an operating unit's performance over time Judging the performance of an entire industry or country
Productivity measures are useful for what?
higher standards of living
(As an economy replaces manufacturing jobs with lower productivity service jobs, it is more difficult to maintain high standards of living)
High productivity is linked to what
competitive advantage in the marketplace
Higher productivity relative to the competition leads to what?
high relative productivity
For an industry, what makes it less likely it will be supplanted by foreign industry?
output / input
how do you calculate productivity?
[(current productivity - previous productivity) / previous productivity] X 100%
how do you calculate productivity growth?
It involves intellectual activities It has a high degree of variability
Service sector productivity is difficult to measure and manage why? (2 reasons)
A useful measure related to productivity is:
1. methods 2. quality 3. management 4. technology 5. capital
list the 5 factors affecting productivity:
Develop productivity measures for all operations Determine critical (bottleneck) operations Develop methods for productivity improvements Establish reasonable goals Make it clear that management supports and encourages productivity improvement Measure and publicize improvements (FYI--Don't confuse productivity with efficiency)
list the 6 steps for improving productivity
The operation with the least capacity
: Improving the efficiency of any other operation in the process, other than the bottleneck, will NOT improve the efficiency of the system