operation strategy and competitiveness

Operations Strategy

The approach to setting policies and plans to utilize resources effectively in support of competitive priorities and corporate strategy.

Competitive Priorities

The dimensions on which a company chooses to compete, including cost, quality, time, and flexibility.

Cost

A competitive priority focused on optimizing processes and reducing expenses to compete on low cost.

Quality of Design

The features and specifications of a product that contribute to its overall quality.

Quality of Conformance

The consistency in meeting design specifications and standards of a product.

Delivery Speed

The speed at which a company can fulfill customer orders.

On-time Delivery

The reliability in meeting promised deadlines to customers.

Development Speed

The pace at which a company can develop and launch new products or services.

Customization

The ability to modify products or services to meet customer-specific needs.

Order Qualifiers

Minimum standards required for a product or service to be considered by customers.

Order Winners

Factors that differentiate a company’s product and influence customer choice.

Corporate Strategy

The overall direction of a company based on market environment, core competencies, and competitive positioning.

Market Analysis

The process of identifying customer needs and market segmentation.

Partial Productivity

Output relative to a single input, such as labor productivity.

Multifactor Productivity

Output relative to multiple inputs, like labor and materials.

Total Productivity

Output relative to all inputs used in the production process.

Trade-offs in Competitive Priorities

The compromises companies must make when selecting competitive priorities, such as balancing cost and quality.

Costco Operations Strategy

Focuses on low cost through efficient warehouse-style stores and strong supplier negotiations.

McDonald's Operations Strategy

Emphasizes consistent quality through standardized work methods and rigorous training.

Productivity Measurement

The assessment of how efficiently resources are used to produce outputs.