Embed Size (px)
DESCRIPTION
2. Competitiveness, Strategy, and Productivity. Slides prepared by Laurel Donaldson Douglas College. List and briefly discuss the primary ways that organizations compete. - PowerPoint PPT Presentation
Citation preview
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
ChaptChapterer
Competitiveness, Strategy,
and Productivity
22
Slides prepared byLaurel DonaldsonDouglas College
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
2
List and briefly discuss the primary ways that organizations compete.
Describe a company’s strategic planning, mission/vision/values, strategies, operations strategy, and list steps involved in formulating an operations strategy.
Define and measure the term productivity, evaluate Canada’s productivity, describe factors affecting productivity, and explain why measuring productivity of services is difficult.
LO 3
LO 2
LO 1
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter OutlineCompetitivenessStrategic PlanningProductivity
3
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
LO 1
Competitiveness:the ability and performance of an
organization in the marketplace compared to other organizations that offer similar goods or services
4
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
LO 1
Order Qualifiers and Order WinnersOrder qualifiers
minimum standards of acceptability for purchase
allow product to be consideredOrder winners
create perception of being better than the competition
allow product to be purchased
5
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
LO 1
Businesses Compete Using Operations
CostQualityFlexibilityTimeliness
6
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
LO 1
Competitive Priorities
7
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
LO 2
Mission/Vision/ValuesMission
Where the organization is going nowVision
Where the organization desires to be in the futureValues
Shared beliefs of the organization’s stakeholdersGoals and Objectives
Provide detail and scope of missionStrategies
Plans that determine direction for achieving organizational goals
Tactics and Action PlansThe methods and actions taken to accomplish strategies
8
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
LO 2
Hierarchical Strategic Planning
9
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
LO 2
Hierarchical Strategy Example
Rita is a high school student. She would like to have a career in business, have a good job, and earn enough income to live comfortably
10
Mission: Live a good lifeGoal: Successful career, good
incomeStrategy: Obtain a college educationTactics: Select a college and a majorAction plans: Register, buy books, take
courses, study, graduate, get job
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
LO 2
Operations StrategyOperations strategy – The approach
that is used to guide the operations function. consistent with organization strategysupport competitive priorities
11
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
LO 2
Strategic Decision Categories
12
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
LO 2
Formulation of an Operations Strategy
13
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
LO 2
Generic Operations Strategies:
14
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
LO 2
Time-based Competition and OutsourcingTime-based Competition
Focuses on reduction of time needed to accomplish tasks
15
Outsourcingbuying a part of a
good/service or a segment of production/service process from an outside supplier.
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
LO 3
Productivity ratios can be computed for:a workera departmentan organizationa country
ProductivityProductivity
A measure of the effective use of resources, usually expressed as the ratio of output to input
16
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
LO 3
Productivity Growth
Productivity Growth =
17
Current Period Productivity – Previous Period ProductivityPrevious Period Productivity
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
LO 3
Measures of Productivity
18
Output Output Output Output Labour Machine Capital Energy
Output OutputLabour + Machine Labour + Capital + Energy
Goods or Services Produced All inputs used to produce them
Multi-factor measures output(multiple inputs)Total measure output
(total inputs)
Partial measures output
(single input)
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
LO 3
Partial Productivity Measures
19
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
LO 3
7040 Units Produced
Cost of labour of $1,000
Cost of materials: $520
Cost of overhead: $2000
Example: Multifactor Productivity
20
What is the multifactor productivity?
Ans. 2.0 units per dollar of input
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
LO 3
Productivity Example: Solution
21
MFP = OutputLabor + Materials + Overhead
MFP = (7040 units)$1000 + $520 + $2000
MFP = 2.0 units per dollar of input
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
LO 3
Productivity Measures are UsefulProductivity efficiencyUsed to:
track performance over timedetermine areas for improvement
compare competitiveness
22
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
LO 3
Productivity Measurement of ServicesMeasurement of service productivity is
problematic because services :are intangibleinvolve intellectual activitieshave output with a high degree of
variability
23
How do you measure an improved state of a customer??
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
LO 3
Factors Affecting Productivity
24
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
25
A company’s competitive priorities might be cost, quality, flexibility, and/or delivery reliability identify order qualifiers and order winners.
Strategies are plans for directing the organization to achieve its mission/vision/goals. An operations strategy is a coordinated set of
policies, objectives, and action plans related to the operations function in nine strategic decision categories
Productivity is a measure of efficient use of resources that is: affected by methods & management, equipment &
technology, and labour difficult to measure for highly variable, intangible
output of services
LO 3
LO 2
LO 1
Chapter Summary
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Checklist Identify major competitive priorities. Define strategic planning,
mission/vision/values, and operations strategy.
List steps involved in formulating an operations strategy.
Define productivity and discuss how it is measured.
Describe factors affecting productivity. Explain why measuring productivity of
services is difficult. 26
