OM quiz 2

Competitiveness

How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services

Hierarchal Planning

mission, goal, organizational strategies, functional strategies, tacctics

mission

The reason for an organization’s existence

goals

Provide detail and the scope of the mission

Strategy

A plan for achieving organizational goals (roadmap)

Mission Statement:

States the purpose of the organization, should answer the question of “What business are we in?”

Organizational strategies

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

Tactics

The methods and actions taken to accomplish strategies. The “how to” part of the process.

Operations

the actual “doing” part of the process

Core competencies

The special attributes or abilities that give an organization a competitive edge

SWOT

Strength

Weakness

Opportunities

Threats

order winners

Characteristics of an organization’s goods or services that cause it to be perceived as better than the competition

order qualifiers

Characteristics that customers perceive as minimum standards of acceptability for a product or service to be considered as a potential for purchase

What is necessary to identify SWOT

environmental scanning

Five Force Model was made by who

Porter

Characteristics of the Five Forces Model

New entrants, suppliers, buyers, substitutes, industry and competitors

Competing on Cost

Eliminate all waste

Reduce Human Error

Increase Employee Input

Rigorous Pursuit of Efficiency

• automation

• eliminate redundancy.

• increase training and development

Competing on Quality

Consumer Driven

Finding the consumer’s Value Set

Creating Value

A Company Philosophy

Competing on Flexibility

Mass Production

Adaptable

employee flexibility

Agile manufacturing

Mass Customization

the ability to create a wide variety of products that use many common and mass-produced items. How can we make unique products in the time we make standardized products

Agile Manufacturing

the ability of a company to thrive in a competitive environment of continuous and unanticipated change (cost, quality, reliability, flexibility)

4 metrics of operations

cost, quality, flexibility, speed

Competing on time/speed

first mover or first customer

strategies that focus on the reduction of time needed to accomplish a task.

The first mover Matric - Speed

Calm Waters – Low tech, low moving markets.  Staples and necessities

Market Leads – Market demand for innovation outpaces innovation and allows for 2^nd movers to profit

Technology Leads – Hypercompetitive markets where both innovation and differentiation are important

Rough Waters – Products ahead of their time that are often supplanted by later entrants who are able to better package the technology to the market pace

Who did the Balanced Scorecard Approach

Kaplan and Norton

What is the Balanced scorecard approach?

Aligns business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals

Brings the Mission & Vision alive by linking activities and metrics to the strategic goals of the organization

The 5 functions of the Balanced Scorecard

financial, customer, learning and growth, internal business, vision and strategy (FLICV))

Productivity

A measure of the effective use of resources, usually expressed as the ratio of output to input

Productivity measures are useful for

Tracking an operating unit’s performance over time

Judging the performance of an entire industry or country

Factors affecting productivity

technology, capital, methods, management, quality

process yield

Where products are involved

• ratio of output of good product to the quantity of raw material input.

Where services are involved, process yield measurement is often dependent on the particular process:

• ratio of cars rented to cars available for a given day.

Joseph Schlumpeter

creative destruction (economic innovation)