Professional Documents
Culture Documents
1-1
Lecture Outline
INPUT
•Material
OUTPUT
•Machines TRANSFORMATION
•Goods
•Labor PROCESS
•Services
•Management
•Capital
• Operations
• Marketing
• Finance and
Accounting
• Human
Resources
• Outside
Suppliers
1-18
GDP per Capita
1-19
Trade in Goods, % of GDP
• Competitiveness
• degree to which a nation can produce goods and
services that meet the test of international markets
• Productivity
• ratio of output to input
• Output
• sales made, products produced, customers served,
meals delivered, or calls answered
• Input
• labor hours, investment in equipment, material usage,
or square footage
C6*C8
C7*C9
C5/C6
C5/C7
C5/C13
Copyright 2011 John Wiley & Sons, Inc. 1-23
Productivity Growth
Mission
and Vision
Corporate
Strategy
Source: Adapted from Nigel Slack, Stuart Chambers, Robert Johnston, and Alan
Betts, Operations and Process Management, Prentice Hall, 2006, p. 47
• Cost
• Speed
• Quality
• Flexibility
1-30
Positioning the Firm: Cost
• Waste elimination
• relentlessly pursuing the removal of all waste
• Examination of cost structure
• looking at the entire cost structure for reduction potential
• Lean production
• providing low costs through disciplined operations
• Policy deployment
• translates corporate strategy into measurable
objectives
• Hoshins
• action plans generated from the policy
deployment process
• Balanced scorecard
• measuring more than financial performance
1. finances
2. customers
3. processes
4. learning and growing
• Key performance indicators
• set of measures to help managers evaluate
performance in critical areas
Services Process
and
Products
Technology
Human
Resources Quality
Capacity