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refers to an organization's ability to outperform its rivals by producing goods or services more efficiently, effectively, and innovatively to meet customer demands and achieve sustainable success in the marketplace.
Competitiveness
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Factors affecting competitiveness
- -cost efficiency
- –product quality
- –Innovation
- –market positioning
- –supply chain management
- –labor skills
- –government regulations, among others.
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Its role in competitiveness is to optimize processes, manage resources effectively, reduce costs, ensure quality, and drive innovation to enhance the organization's competitive advantage.
Operations management
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What are some of the reasons why companies fail?
- •Too much emphasis on short-term financial performance
- •Failing to take advantage of strengths and opportunities
- • Neglecting operations strategy
- • 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
- •Failing to consider customer wants and needs
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Deals with how effective an organization meets the wants and needs of customers relative to others that offer similar goods or services.
Operations management
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Marketing influence
- –Identifying consumer wants and/ or needs
- –Pricing and quality
- –Advertising and promotion
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Other Criteria Businesses Compete Using Operations
- –Product and Service Design
- –Cost
- –Location
- –Quality
- –Quick Response
- –Flexibility
- –Inventory Management
- –Supply Chain Management
- –Service
- –Managers and Workers
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–For The Operations Department to satisfactorily achieve their intention, it is important that they must commit to a _________
strategic planning.
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Strategic planning follows a particular _________
hierarchy
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Hierarchical Planning
- Mission
- Goals
- Organizational Strategies
- Functional Strategies
- Tactics
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The reason for an organization's existence
Mission
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States the purpose of the organization
Mission statement
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Mission statement serves as the basis For _____
organizational goals
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Provide details and the scope of the mission
Goals
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A plan for achieving organizational goals
Strategy
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“How do we compete?”, “How do we gain (a sustainable) competitive advantage over rivals?”.
Organizational or Business Level Strategies
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“How do we support the business-level strategy within functional departments, such as Marketing, HR, Production and R&D?”
Functional Level Strategies
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The methods and actions taken to accomplish strategies
Tactics
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The actual “doing” part of the process
Operations
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The special attribute or abilities that give an organization a competitive edge
Core competencies
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Effective Strategy formulation requirements:
- –Core Competencies
- –SWOT Analysis
- –5 Forces Analysis by Porter
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Successful strategy formulation also requires:
- –Order Qualifiers
- –Order Winners
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Characteristics that customers perceive as minimum standards of acceptability for a product or service to be considered as a potential for purchase
Order Qualifiers
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Characteristics of an organization’s goods or services that cause it to be perceived as better than the competition
Order Winners
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Environmental scanning is necessary to identify:
- –Internal Factors
- -Strengths and Weaknesses
- –External Factors
- -Opportunities and threats
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Key Internal Factors
- 1.Human Resources
- 2.Facilities and Equipment
- 3.Financial Resources
- 4.Customers
- 5.Products and Services
- 6.Technology
- 7.Suppliers
- 8.Other
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Key External Factors
- • Economic conditions
- • Political conditions
- • Legal environment
- • Technology
- • Competition
- • Markets
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The approach, consistent with organization strategy, that is used to guide the operations
function.
Operations strategy
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The strategy that focuses on quality in all phases of an organization
Quality-Based Strategy
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Strategies that focus on the reduction of time needed to accomplish the tasks
Time-based Strategies
* It is believed that by reducing time, costs are lower, quality is higher, productivity is higher, time-to-market is faster, and customer service is improved
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A strategic approach for competitive advantage
that emphasizes the use of flexibility to adapt and prosper in an environment of change
Agile Operations
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Movement was led by efficiency engineer,____________
Frederick Winslow Taylor
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•A measure of the effective use of resources, usually expressed as the ratio of output to input
Productivity
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are used for tracking an operating unit’s performance over time
Productivity measures
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Importance of Productivity
- –High productivity is linked to higher standards of living
- –Higher Productivity relative to the competition leads to competitive advantage in the marketplace
- –For an industry, high relative productivity makes it less likely it will be supplanted by foreign industry
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Factors Affecting Productivity
- Methods
- Capital
- Quality
- Technology
- Management
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