operman 2

Competitiveness

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

Ways Organizations Compete

Key marketing and operational areas including product/service design, cost, location, quality, quick response, flexibility, inventory management, supply chain management, service, and managers/workers

Why Businesses Fail

Operational failure points such as neglecting operations strategy, failing to take advantage of strengths/opportunities, putting too much emphasis on short-term financial performance, neglecting R&D, placing too much emphasis on product/service design and not enough on process design, neglecting human resources, or failing to establish good internal communication

Mission

The reason for existence for an organization

Mission Statement

States the purpose of an organization and answers the question "What business are we in?"

Goals

Provide detail and scope of the mission

Strategies

Plans for achieving organizational goals

Organizational Strategies

Strategic plans that relate to the entire organization

Functional Strategies

Strategic plans that relate to each of the functional areas of the organization

Tactics

The methods and actions taken to accomplish strategies

Core Competencies

Business activities that provide superior value or benefits to the consumer, are difficult for competitors to replicate or imitate, and are rare

Distinctive Competencies

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

Operations Strategy

The approach, consistent with organization strategy, that is used to guide the operations function

Order Qualifiers

Characteristics that customers perceive as minimum standards of acceptability to be considered as a potential purchase

Order Winners

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

Quality-Based Strategies

Strategies focused on maintaining or improving the quality of an organization's products or services

Time-Based Strategies

Strategies focused on the reduction of time needed to accomplish tasks

Agile Operations

A strategic approach emphasizing flexibility, speed, and responsiveness to change

Productivity

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

Production

The total quantity of output produced

Single-Factor Productivity

Productivity ratio calculated using a single input (e.g., Output / Labor, Output / Capital, Output / Energy)

Multifactor Productivity

Productivity ratio calculated using multiple inputs (e.g., Output / (Labor + Capital + Energy))

Total Factor Productivity

Productivity ratio calculated using all inputs used to produce the output

Productivity Growth

The rate of change in productivity over time, calculated as ((Current Productivity - Previous Productivity) / Previous Productivity) * 100

Factors Affecting Productivity

Key influences including methods, capital, quality, technology, management, and regulatory compliance