Ch 2 Flashcards
Competitiveness
ability and performance of an organization in the marketplace compared to other organizations
Key Purchasing Criteria
Value = Quality, timeliness, Variety / Price
= Perception of benefits / Price
Order qualifiers & winnders
Order qualifiers
◦ Minimum standards of acceptability for purchase
◦ Minimum performance level to stay in business
Orderwinners
◦ Create perception of being better than the
competition
◦ Performance level to win the customer’s business
Competitive Priorities
Cost, Flexibility, Quality, On-Time & Reliable Delivery
Operations strategy
set of coordinated policies, objectives, and action plans, directly affecting the operations function
Generic operations strategies
- Continuous improvement
- large scale-base
- focused factories
- flexible factories
- low labour cost
Quality-based strategy
- maintain or improve quality
time-based strategy
reduction of time needed to accomplish tasks
supply chain strategy
includes suppliers, distributors, and customers
global strategy
- where parts/products are made
- where products/services sold
sustainability strategy
to achieve sustainability goals
balanced scorecard framework
How do customers see us? (customer perspective)
What must we excel at? (internal perspective)
Can we continue to improve and create value? (innovation and learning perspective)
How do we look to shareholders? (financial perspective)
https://hbr.org/1992/01/the-balanced-scorecard-measures-that-drive-performance-2
Productivity
Productivity = Outputs/Inputs
Productivity Growth
Productivity Growth = (Current Period Productivity - Previous Period Productivity) / Previous Period Productivity
Measures of Productivity
Partial, Multifactor, Total
