OPERATIONS

MANAGEMENT
TOPIC II

Prof. Marissa Lanuza

1. COMPETITIVENESS, STRATEGY AND
PRODUCTIVITY
 COMPETITIVENESS, STRATEGY
AND PRODUCTIVITY

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

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 COMPETITIVENESS, STRATEGY
AND PRODUCTIVITY
1. Product and service design 9. Service
2. Cost of an organization’s output 10. Managers and Workers
3. Location
4. Quality
5. Quick Response
6. Flexibility
7. Inventory Management
8. Supply Chain Management

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 COMPETITIVENESS, STRATEGY
AND PRODUCTIVITY

STRATEGY

 Plans for achieving organizational goals

 Must be designed to support the organizations mission and
organizational goals

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 EXAMPLE OF A COMPANY
MISSION:
NIKE JOLLIBEE
“To bring inspiration and “To serve great tasting
innovation to every food, bringing the joy of
athlete in the world.” eating to everyone.”

www.nike.com
www.jollibee.com.ph

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 EXAMPLES OF DIFFERENT STRATEGIES AN
ORGANIZATION MIGHT CHOOSE FROM:

LOW COST SCALE-BASED SPECIALIZATION

Outsource operations to STRATEGIES Focus on narrow product
have low labor costs. Use capital – intensive lines.
methods to achieve high
output volume and low
unit costs.

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 EXAMPLES OF DIFFERENT STRATEGIES AN
ORGANIZATION MIGHT CHOOSE FROM:

FLEXIBLE HIGH-QUALITY SERVICE SUSTAINABILITY

OPERATIONS Focus on achieving Focus on various
Focus on
Focus on quick higher quality than aspects of service
response and/or competitors environmental –
customization friendly and energy
– efficient
operations

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 Examples of Operations Strategy
FACTOR OPERATIONS STRATEGY EXAMPLES OF
COMPANIES/SERVICES
PRICE LOW COST JETSTAR

QUALITY HIGH PERFORMANCE SONY TV

DESIGN/HIGH QUALITY LEXUS
DISNEYLAND
COCA-COLA
TIME RAPID/ON-TIME DELIVERY MCDONALDS RESTAURANT
FEDEX
PIZZA HUT
FLEXIBILITY VARIETY VOLUME BURGER KING
TOYOTA
SERVICE SUPERIOR CUSTOMER SERVICE HEWLETT-PACKARD
IBM
RITZ-CARLTON HOTEL
LOCATION CONVENIENCE MALL STORES, BANKS, ATMS,
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SUPERMARKETS
STRATEGY FORMULATION
IMPORTANT FACTORS: EXTERNAL

1. Economic Conditions
2. Political Conditions
3. Legal Environment
4. Technology
5. Competition
6. Markets

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INTERNAL FACTORS INCLUDE:

1. Human Resources
2. Facilities and
Equipment
3. Financial Resources
4. Customers
5. Products and Services
6. Technology
7. Suppliers
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OPERATIONS STRATEGY

Two factors that tend to have universal strategic operations importance relate to
Quality and Time

1. Quality – based strategies – Focuses on quality in all phases of an organization.

2. Time – based Strategies – Focuses on reducing the time required to accomplish
various activities.

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 COMPETITIVENESS, STRATEGY
AND PRODUCTIVITY

PRODUCTIVITY
 Defined as – As a measure of the effective use of resources, usually
expressed as the ratio of output to input

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 COMPETITIVENESS, STRATEGY
AND PRODUCTIVITY

EXPRESSED IN THE FORMULA:

PRODUCTIVITY = OUTPUT
INPUT

PRODUCTIVITY GROWTH = CURRENT PRODUCTIVITY --- PREVIOUS PRODUCTIVITY

X100
PREVIOUS PRODUCTIVITY

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 COMPETITIVENESS, STRATEGY
AND PRODUCTIVITY

COMPUTING PRODUCTIVITY
BASIS OF PRODUCTIVITY MEASURES:
o Single input (Partial Productivity)
o More than one input (Multifactor Productivity)
o All inputs (Total Productivity)

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 COMPETITIVENESS, STRATEGY
AND PRODUCTIVITY
Some examples of different types of productivity measures:

PARTIAL MEASURES = OUTPUT OUTPUT OUTPUT OUTPUT

LABOR MACHINE CAPITAL ENERGY

MULTIFACTOR MEASURES = OUTPUT OUTPUT

LABOR + MACHINE LABOR + CAPITAL + ENERGY

TOTAL MEASURES = GOODS OR SERVICES PRODUCED

ALL INPUTS USED TO PRODUCED THEM

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 ACTIVITY FOR TOPIC II

1. Online Research: (20 pts)

- Articles about ways to be competitive
- Factors that can affect productivity and ways that productivity can be
improved
2. Computation of productivity rate (20 pts)

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