May 3, 2013
Developing Business Skills
How do OMM activities create value and a competitive advantage at the input, operations, and output stages?
The input stage of the operations and materials management process would include the materials needed to create the finished goods that the consumer desires. This is where the company determines the amount of value they create for the customer by purchasing products that have the greatest value for the money. The operations stage of the process is where the skills, knowledge, machines, and experts come together to produce the goods and services to sell to the consumer at the lowest cost possible to remain competitive in their market. The output stage of this process is when the products that were produced reach the customers that they were intended for. If these products cost more to make than the competitors, then the consumers will likely not buy their product because the cost will be higher to cover the expenses involved in making them.
What is TQM, and why is it important for a company to improve the quality of its products? In terms of a company’s input, operations, and output stages, how can TQM be used to create a competitive advantage?
The term TQM refers to total quality management and refers to techniques used to improve operational efficiency and effectiveness. This operational technique is aimed toward continuous improvement within the company from input to output. This technique helps companies to reduce the production time it takes to make a product as well as the waste involved in the process too. When a company focuses on streamlining their production process it allows them to reduce their initial cost involved in producing their products which, in turn, reduces their overall cost and allows them to pass the savings on to their consumers. What is Six Sigma, and it what ways can it be used to reduce the costs of a company’s OMM process?...