Competitiveness, Strategy, and Productivity

Transcription

1 Competitiveness, Strategy, and Productivity อาจารย ดร.อ ศว ณ ปส ธรรม 2-1

2 Competitiveness How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services 2-2

3 Businesses Compete Using Marketing Identifying consumer wants and/or needs Pricing Advertising and promotion 2-3

4 Businesses Compete Using Operations Product and service design Cost of the outputs Location Quality Quick response Flexibility Inventory management Supply chain management Service Human resources 2-4

5 Why Organizations Fail Putting too much emphasis on short term financial performance at the expense of R&D Failing to take advantage from SWOT analysis Neglecting operations strategy Failing to establish good internal communications and cooperation among different functional areas Failing to consider customer wants and needs 2-5

6 Strategy Vision Mission Strategy Tactic How does vision, mission, strategy and tactic relate to decision making and distinctive competencies? 2-6

7 Strategy Vision The organizational goals Mission The reason for existence for an organization Mission Statement Answers the question What business are we in? Strategies Plans for achieving organizational goals Tactics The methods and action plans taken to accomplish strategies 2-7

8 Organization Strategy Strategies: Roadmaps for reaching the destinations Organization strategies: overall strategies should support the goals and mission of the organization Functional strategies: should support the overall strategies of the organization 2-8

9 Hierarchical Relationship Vision Mission Organizational Strategies Functional Goals Finance Strategies Operations Strategies Marketing Strategies Tactics Tactics Tactics Operating Procedures Operating Procedures Operating Procedures 2-9

10 Examples of Strategies Low cost Scale-based strategies Specialization Flexible operations High quality Service Sustainability 2-10

11 Distinctive Competencies The special attributes or abilities that give an organization a competitive edge Factors that consider for distinctive competencies - Price - Flexibility - Quality - Service - Time - Location 2-11

12 Examples of Strategies Factor Operations Strategy Companies Price Low cost??? Quality Time Flexibility High quality Consistent quality Rapid delivery On-time delivery Variety Volume Service Superior customer service??? Location Convenience????????????????????? 2-12

13 Strategy Formulation To formulate an effective strategy, senior managers much consider the distinctive competencies of the organization, and they must scan the environment SWOT analysis 2-13

14 Successful Strategy Order qualifiers : potential customer perceive as minimum standards of acceptability for purchase Order winners : perceived as better than competitor 2-14

15 Environment Scanning External factors Economic conditions Political conditions Legal environment Technology change Competition Markets Internal factors Human resources Facilities and equipment Financial resources Customers Products and services Technology Suppliers Other 2-15

16 Operations Strategy The approach, consistent with organization strategy, that is used to guide the operations function 2-16

17 Quality and Time strategies Quality-based strategies focus on maintaining or improving the quality of a organization s products or services. Quality is a factor in both attracting and retaining customers. 2-17

18 Quality and Time strategies Time-based strategies focus on reducing the time required to accomplish various activities develop new products or services and market them respond to change in custom demand deliver a product or perform a service 2-18

19 Productivity A measure of the effective use of resources, usually expressed as the ratio of output to input Productivity ratios are used for Planning workforce requirements Scheduling equipment Financial analysis 2-19

20 Productivity Productivity = Outputs Inputs 2-20

21 Productivity Partial measures output / single input Multi-factor measures Total measure output / multiple inputs output / total inputs 2-21

22 Measures of Productivity Partial Output Output Output Output measures Labor Machine Capital Energy Multifactor Output Output measures Labor + Machine Labor + Capital + Energy Total measure Goods or Services Produced All inputs used to produce them 2-22

23 Examples of Partial Productivity Measures Labor Productivity Machine Productivity Capital Productivity Energy Productivity Units of output per labor hour Units of output per shift Value-added per labor hour Units of output per machine hour Dollar value of output per machine hour Units of output per dollar input Dollar value of output per dollar input Units of output per kilowatt-hour Dollar value of output per kilowatt-hour 2-23

24 Problem The manager of a crew that installs carpeting has tracked the crew s output over the past several weeks, obtaining these figures: Compute the productivity for each of the weeks Week Crew size Yards installed

25 Problem 7,040 Units Produced Cost of labor: $1,000 Cost of materials: $520 Cost of overhead: $2,000 What is the multifactor productivity? 2-25

26 Problem MFP = Output Labor + Materials = 7040 units $ $520 = 4.63 units per dollar of input 2-26

27 Productivity Growth Current Period Productivity Previous Period Productivity Previous Period Productivity 2-27

28 Problem A manager checked production records and found that a worker produced 160 units while working 40 hours. In the previous week, the same worker produced 138 units while working 36 hours. Did the worker s productivity increase, decrease, or remain the same? Explain 2-28

29 Solution Current period productivity = 160/40 = 4 units/hr. Previous period productivity = 138/36 = 3.83 units/hr. Productivity growth = current-previous/previous = (4-3.83)(100)/3.83 = increase 4.3 % in productivity 2-29

30 Factors Affecting Productivity Capital Quality Technology Management 2-30

31 Other Factors Affecting Productivity Standardization Quality differences Use of Internet Computer viruses Searching for lost or misplaced items Scrap rates New workers 2-31

32 Other Factors Affecting Productivity Safety Shortage of IT workers Layoffs Labor turnover Design of the workspace Incentive plans that reward productivity 2-32

33 Improving Productivity Develop productivity measures for all operations Look at the system as a whole in deciding which operations are most critical Develop methods for achieving productivity improvements Establish reasonable goals for improvement Make it clear that management supports and encourages productivity improvement Measure improvements and publicize them 2-33