Professional Documents
Culture Documents
Strategy, and
Productivity
McGraw-Hill/Irwin
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Type
Definition
Low Cost
Market
Segmentation
Product
Differentiation
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Services
Products
Capacity
Facilities
Human
Resources
Sourcing
Process
and
Technology
Quality
Operating
Systems
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Competitiveness:
How effectively an organization meets the
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Mission
Goals
Organizational Strategies
Functional Strategies
Tactics
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Mission
Goals
Organizational Strategies
Functional Goals
Finance
Strategies
Tactics
Operating
procedures
Marketing
Strategies
Tactics
Operating
procedures
Operations
Strategies
Tactics
Operating
procedures
Mission
The reason for an organizations existence
Goals
Provide detail and the scope of the mission
Goals can be viewed as organizational destinations
Strategy
A plan for achieving organizational goals
Serves as a roadmap for reaching the organizational
destinations
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Mission
The reason for an organizations existence
Mission statement
States the purpose of the organization
The mission statement should answer the
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Example
Apple designs Macs, the best personal
computers in the world, along with OS X, iLife,
iWork and professional software. Apple leads the
digital music revolution with its iPods and iTunes
online store. Apple has reinvented the mobile
phone with its revolutionaryiPhone and App
store, and is defining the future of mobile media
and computing devices with iPad.
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strategies
Examples
Reduce overall budget costs by 10% by 20xx
Increase market share by 5% by 20xx
Increase customer satisfaction by 10% by 20xx
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Strategy
A plan (steps) for achieving organizational goals
Serves as a roadmap for reaching the organizational
destinations
Organizations have
Organizational strategies
Overall strategies that relate to the entire organization
Support the achievement of organizational goals and
mission
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into account:
Core competencies
Environmental scanning
SWOT
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Order qualifiers
Characteristics that customers perceive as
minimum standards of acceptability for a
product or service to be considered as a
potential for purchase
Order winners
Characteristics of an organizations goods or
services that cause it to be perceived as
better than the competition
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Environmental Scanning is
necessary to identify
Internal Factors
Strengths and Weaknesses
External Factors
Opportunities and Threats
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1. Economic conditions
2. Political conditions
3. Legal environment
4. Technology
5. Competition
6. Markets
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1. Human Resources
2. Facilities and equipment
3. Financial resources
4. Customers
5. Products and services
6. Technology
7. Suppliers
8. Other
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Operations strategy
The approach, consistent with organization strategy, that is
Capacity
Work design
Location
Costs, visibility
Quality
Inventory
Costs, shortages
Maintenance
Scheduling
Flexibility, efficiency
Supply chains
Projects
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Quality-based strategy
Strategy that focuses on quality in all phases
of an organization
Pursuit of such a strategy is rooted in a number of
factors:
Trying to overcome a poor quality reputation
Desire to maintain a quality image
A desire to catch up with the competition
A part of a cost reduction strategy
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Time-based strategies
Strategies that focus on the reduction of time
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Productivity
A measure of the effective use of resources,
time
Judging the performance of an entire industry or
country
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living
As an economy replaces manufacturing jobs with lower
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Productivity =
Output
Input
PartialMeasures
Output
Ouput Output
;
;
SingleInput
Labor
Capital
MultifactorMeasures
TotalMeasure
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Output
Ouput
Output
;
;
MultipleInputs Labor + Machine Labor +Capital + Energy
Goodsorservicesproduced
Allinputsusedtoproducethem
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What is the
multifactor
productivity?
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MultifactorProductivity =
Output
Labor + Material + Overhead
$150,000
$42,500
= 3.5294
What is the implication of an unitless measure of productivity?
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Currentproductivity Previousproductivity
ProductivityGrowth =
100%
Previousproductivity
Example: Labor productivity on the ABC assembly line was 25 units per hour in
2009. In 2010, labor productivity was 23 units per hour. What was the
productivity growth from 2009 to 2010?
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23 25
ProductivityGrowth =
100% 8%
25
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manage because
yield
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