OPEQUAL MODULE 2

Operations strategy

focused in defining the role and activities of the operations function of the organization.

Operations

responsible for ensuring that strategies are effectively implemented

competitive advantage

Operations strategy focuses on capabilities that enable the firm to gain ___ ____.

Strategy

An organization’s action plan to achieve the mission.

Mission Statement

A statement defining the purpose why an organization exists.

Core Competencies

Attributes that give an organization a competitive edge.

FALSE - mission

TRUE OR FALSE

The first step in order to come up with an effective strategy is for the organization  to identify its vision and develop a statement about it.

mission statement

A ___ _____ defines the purpose of an organization's existence.  It also discusses the present business of the organization and serves as a basis for its goals and strategies. 

TRUE

TRUE OR FALSE

Through its mission statement, an organization may have a concrete basis of which strategy they will be pursuing.

Strategies

_____ are important in determining the success or failure of an organization because they provide the plans to carry out their goals.

destination

A mission acts as a ______

Strategies

_____ being the steps the organization should take to achieve a mission

Operations Strategy

These functional strategies contribute to overall achievement of the organization's goals

1. Low Cost

2. Differentiation

3. Responsiveness

THREE BASIC BUSINESS STRATEGIES

Low Cost

Organizations who utilize a low cost strategy offer their product at a comparably lower price against their competitors.

Economies of Scale

What is attained when an organization becomes more efficient.

Differentiation

_____ is a strategy which enables the organization to produce products that are remarkably differentiated from the others which are offering the similar ones.

TRUE

TRUE OR FALSE

Differentiation can relate to product or service features, quality, reputation, or customer service.

Responsiveness

This refers to  how quick and flexible the organization responds to the needs or the demands of their customers.

Competitiveness

In order to succeed in the market, organizations have to provide better goods and services compared to others. 

Competitiveness

refers to how effective an organization is in terms of meeting the needs and wants of other companies that offer similar output.

1. offer high quality products at better prices

2. utilize heavy advertising and catchy promotions

TWO WAYS TO BECOME COMPETITIVE

operations

Businesses usually utilize a number of strategies  in order to get ahead in the market. Aside from marketing, they also influence competitiveness  through their ____.

TRUE

TRUE OR FALSE

Companies may provide outstanding innovations on product and service design or may choose to locate in a place which provides more convenience to customers.  

TRUE

TRUE OR FALSE

One reason is that businesses usually only focus on making plans, but do poorly when it comes to execution.  Worst is when businesses do not have any plans at all. 

Environmental Scanning

This should be done by organizations to avoid failure.  This can help them take advantage of opportunities and solve potential threats that may damage the firm.

TRUE

TRUE OR FALSE

Organizations have to work on determining how they can best satisfy and exceed the expectations of their customers.

TRUE

TRUE OR FALSE

The importance of knowing environmental scanning could make organizations deal with issues that may hinder their success.

STRATEGY FORMULATION

An organization should be able to formulate effective strategies to attain their goals.  In order to do so, they must utilize their core competencies to gain advantage against their competitors.

SWOT Analysis

process of assessing the Strengths, Weaknesses, Opportunities and Threats abounding the organization.

Strengths and Weaknesses

internal to the firm, and which an organization typically has a control of. 

Opportunities and Threats

external and are already beyond the control of the firm. 

1. order qualifiers

2. order winners

2 TERMS THAT ARE IMPORTANT TO UNDERSTAND IN STRATEGY FORMULATION

order qualifiers

refer to characteristics that customers perceive as minimum standards before they consider one product for purchase.

order winners

characteristics of an organization's output that are perceived by customers to be better than their counterparts

FALSE - it is possible

TRUE OR FALSE

It is not possible that an order winner of one company may just become an order qualifier if another company becomes better in that area, and vice versa.

1. Quality-based strategies

2. Time-based strategies

These are two types of strategies that organizations have basically pursued

Quality-based strategies

focus on improving the quality of an organization's output.  Organizations may be motivated to pursue this because they are doing poorly on quality and they would want to catch up with their competitors

Time-based strategies

utilized by organizations who want to reduce time in terms of introducing innovations or responding to customer demand

first mover advantage

Organizations intend to reduce time because by doing so, they can have the ____ ____ ___ thereby gaining more customers than their competitors.

FALSE - Aristotle

TRUE OR FALSE

It is well  to be up before daybreak, for such habits contribute to health, wealth and wisdom.

• Socrates

Productivity

making efficient use of your resources, which is in your case, your time and energy during quarantine. 

ratio of output to input

For organizations, productivity refers to the effective use of their resources, or the ______

TRUE

TRUE OR FALSE

Having high productivity means lower costs for nonprofit organizations.

TRUE

TRUE OR FALSE

It also tells how competitive profit-based organizations are.

Productivity Growth

_____ _____  is particularly important for nations as it has a large impact on the economy and people's standard of living.

Productivity = Output/Input

How do we compute productivity?

Productivity

can be computed based on a:

• single input (partial productivity)

• more than one input (multifactor productivity)

• on all inputs (total productivity)

Productivity Growth

_______ ______ is the increase in productivity from one period to the next relative to the productivity in the preceding period.

Productivity growth = [(current productivity - previous productivity) / previous productivity ] x 100

Solution for productivity growth

FALSE - service

TRUE OR FALSE

Productivity in manufacturing is more difficult to measure since inputs and outputs varies

Service Productivity

• Labor-intensive

• Performed by professionals

• Cannot be mechanized & automated

FALSE - more difficult

TRUE OR FALSE

The easier the task is, the harder it is to increase productivity.

Productivity

It means being able to make efficient use of an organization's resources.

1. Methods

2. Quality

3. Management

4. Technology

5. Manpower

6. Capital - machineries

FACTORS AFFECTING PRODUCTIVITY (6)

1. Product and service design

2. Cost

3. Location

4. Quality

5. Quick response

6. Flexibility

7. Inventory management

8. Supply chain management

9. Service

10. Managers and workers

BUSINESSES COMPETE USING THESE OPERATIONS (10)

1. Too much emphasis on short-term financial performance

2. Failing to take advantage of strengths and opportunities - check the environment

3. Failing to recognize competitive threats - check the environment

4. Neglecting operations strategy

5. Too much emphasis in product and service design and not enough improvement

6. Neglecting investments in capital and human resources

7. Failing to establish good internal communications

8. Failing to consider customer wants and needs

REASONS WHY ORGANIZATIONS FAIL (8)

FALSE - quality and time

TRUE OR FALSE

Organizations pursue strategies that are based on cost and risk

B. output

At a bakeshop, ube cheese pandesal is considered an:

A. service

B. output

C. input

D. process

A. service

Productivity is more difficult to measure in ________

A. service

B. manufacturing 

D. outputs 

Goods and services are considered as 

A. inputs 

B. process 

C. tools 

D. outputs 

FALSE

TRUE OR FALSE

Finance may not be able to meet customer needs if they do not fully understand what operations can produce.

D. Gantt was recognized for developing a system of effectively scheduling work.

Which of the following is true?

A. Douglas McGregor pursued the best interests of human element through his Hawthorne studies.

B. The existence of computers and software lessened the use of decision models and management science.

C. The craft production process was very much effective because it provides standardized parts for production.

D. Gantt was recognized for developing a system of effectively scheduling work.

B. all of the above 

Inputs in Operations Management include:

A. information 

B. all of the above 

C. technology 

D. building 

E. human capital 

TRUE

TRUE OR FALSE

Manufacturing and service differ in terms of what is done.

A. marketing, finance/accounting, production/operations

The three major business functions necessary to all organizations are

A. marketing, finance/accounting, production/operations

B. marketing, finance/accounting, research & development

C. Finance/accounting, human resource, operations

D. marketing, production, operations

D. additional meetings

Which is not likely to improve productivity?

A. increased automation 

B. improved trainings 

C. increased incentives

D. additional meetings

D. the task is more intellectual and personal.

Increases in productivity are difficult to achieve if

A. the task is more quantitative and repetitive.

B. the task is more good-producing and standardized.

C. output is more physical and tangible.

D. the task is more intellectual and personal.

FALSE - quality and time

TRUE OR FALSE

Organizations pursue strategies that are based on cost and risk