1 Introduction to Operations Management
Competitiveness, Strategy, and Productivity
CHAPTER OUTLINE Introduction, 42 Competitiveness, 42
Why Some Organizations Fail, 43
2 Competitiveness, Strategy, and Productivity
3 Forecasting 4 Product and Service Design 5 Strategic Capacity Planning for Products and Services 6 Process Selection and Facility Layout 7 Work Design and Measurement 8 Location Planning and Analysis 9 Management of Quality 10 Quality Control 11 Aggregate Planning and Master Scheduling 12 MRP and ERP 13 Inventory Management 14 JIT and Lean Operations 15 Supply Chain Management 16 Scheduling 17 Project Management 18 Management of Waiting Lines 19 Linear Programming
Transforming Strategy into Action: The Balanced Scorecard, 54 Productivity, 56 Computing Productivity, 57 Productivity in the Service Sector, 60 Factors That Affect Productivity, 60 Improving Productivity, 62
Mission and Strategies 44
Strategies and Tactics, 45 Strategy Formulation, 47 Supply Chain Strategy, 51 Sustainability Strategy, 51 Global Strategy, 51
Operations Strategy, 52
Strategic Operations Management Decision Areas, 53 Quality and Time Strategies, 53
Cases: An American Tragedy: How a Good Company Died, 66 Home-Style Cookies, 67 Hazel Revisited, 69 “Your Garden Gloves,” 69 Operations Tour: The U.S. Postal Service, 70
Implications of Organization Strategy for Operations Management, 54
After completing this chapter, you should be able to: 1 2 3 4 List the three primary ways that business organizations compete. Explain five reasons for the poor competitiveness of some companies. Define the term strategy and explain why strategy is important. Discuss and compare organization strategy and operations strategy, and explain why it is important to link the two. Describe and give examples of timebased strategies. 6 Define the term productivity and explain why it is important to organizations and to countries. 7 Provide some of the reasons for poor productivity and some ways of improving it.
THE COLD HARD FACTS
This chapter discusses competitiveness, strategy, and productivity, three separate but related topics that are vitally important to business organizations. Competitiveness relates to the effectiveness of an organization in the marketplace relative to other organizations that offer similar products or services. Operations and marketing have a major impact on competitiveness. Strategy relates to the plans that determine how an organization pursues its goals. Operations strategy is particularly important in this regard. Productivity relates to the effective use of resources, and it has a direct impact on competitiveness. Operations management is chiefly responsible for productivity. The name of the game is competition. The playing field is global. Those who understand how to play the game will succeed; those who don’t are doomed to failure. And don’t think the game is just companies competing with each other. In companies that have multiple factories or divisions producing the same good or service, factories or divisions sometimes find themselves competing with each other. When a competitor—another company or a sister factory or division in the same company—can turn out products better, cheaper, and faster, that spells real trouble for the factory or division that is performing at a lower level. The trouble can be layoffs or even a shutdown if the managers can’t turn things around. The bottom line? Better quality, higher productivity, lower costs, and the ability to quickly respond to customer needs are more important than ever, and the bar is getting higher. Business organizations need to develop solid strategies for dealing with these issues.
Chapter Two Competitiveness, Strategy, and Productivity
In this chapter you will learn about the different ways companies compete and why some firms do a very good job of competing. You will learn how...