Download - Oper Ati Ons St Rat Eg y an d Comp
-
8/14/2019 Oper Ati Ons St Rat Eg y an d Comp
1/23
-
8/14/2019 Oper Ati Ons St Rat Eg y an d Comp
2/23
OPER ATI ONS STRAT EGY AN DCOMP ETIT IV ENE
SSPresented by:
Abhishek Gupta
Sagun Bajaj
Priyanka Bakhshi
-
8/14/2019 Oper Ati Ons St Rat Eg y an d Comp
3/23
The Role of Business
Strategy Provides a plan (business strategy) making
the best use of resources that:
Defines the long-range plan to compete in themarketplace
Helps to differentiate the firm from competitors
Provides a game plan upon which functionalstrategies are developed
Focuses on doing the right tasks
-
8/14/2019 Oper Ati Ons St Rat Eg y an d Comp
4/23
Business/Functional Strategy
-
8/14/2019 Oper Ati Ons St Rat Eg y an d Comp
5/23
-
8/14/2019 Oper Ati Ons St Rat Eg y an d Comp
6/23
-
8/14/2019 Oper Ati Ons St Rat Eg y an d Comp
7/23
Service-enhanced
Product or
Delivered Service
Policy
Satisfied Customer
Corporate Strategy
Focus: Survival
Business StrategyFocus: Distinctive Competence
Cost Leadership
Product Differentiation
Focus (cost or differentiation)
Operations Strategy
Focus: Competitive PrioritiesCost Flexibility Quality Delivery
ImplementationCapability Building
Resources
Process ProductStructure Infrastructure
Other Functional
StrategiesMarketing
Finance
Human Resources
Engineering
Information Systems
-
8/14/2019 Oper Ati Ons St Rat Eg y an d Comp
8/23
Competitive Priorities- The Edge
Four Important Operations Questions: Willyou compete on
Cost?
Quality?
Time?
Flexibility?
All of the above?
Some?
Tradeoffs?
-
8/14/2019 Oper Ati Ons St Rat Eg y an d Comp
9/23
Competing on Cost?
Offering products/services at a low pricerelative to competitors. Typically high volume products
Often limit product range & offer littlecustomization
May invest in automation to reduce unit costs
Can use lower skill labor
Probably use product focused layouts
Low cost should not mean low quality
-
8/14/2019 Oper Ati Ons St Rat Eg y an d Comp
10/23
Competing on Quality?
Quality is sometimes subjective Quality may be defined differently by customers
versus employees Quality dimensions:
High performance design: Superior features, high durability, & excellent customer service Product & service consistency:
Meets design specifications Close tolerances Error free delivery
Quality issues to address: Product design quality products/services must meet
requirements Process quality will produce error-free products/services
-
8/14/2019 Oper Ati Ons St Rat Eg y an d Comp
11/23
Competing on Time?
Time is one of the most importantcompetitive priorities
Being first-to-deliver often wins the race Time related issues:
Fast delivery: Focused on shorter time between order placement and
delivery
On-time delivery: Deliver product exactly when needed every time
Rapid development speed Using concurrent processes to shorten product development
time
-
8/14/2019 Oper Ati Ons St Rat Eg y an d Comp
12/23
Competing on Flexibility?
The companys environment often changesrapidly
Flexibility is needed to accommodate these
changes Product flexibility:
Easily switch production from one item to another
Easily customize product/service to meet specific
requirements of a customer Volume flexibility:
Ability to ramp production up and down to match market
demands
-
8/14/2019 Oper Ati Ons St Rat Eg y an d Comp
13/23
Are There Priority Tradeoffs?
Emphasize priorities that support the business strategy, which may requiretrade-offs
Focus on order qualifiers and order winners Which priorities are Order Qualifiers? e.g. Must have excellent quality since everyone expects it Which priorities are Order Winners?
e.g. Southwest Airlines competes on cost McDonalds competes on consistency FedEx competes on speed Custom tailors compete on flexibility Can you have both high quality and low cost? e.g. Yes, Coke and Pepsi are good examples Can you offerdesign flexibility and short delivery? e.g. Yes, modular housing manufacturers do it
-
8/14/2019 Oper Ati Ons St Rat Eg y an d Comp
14/23
-
8/14/2019 Oper Ati Ons St Rat Eg y an d Comp
15/23
Productivity: Definition
Productivity is the relationship betweenthe Outputs generated from a system andthe Inputs that are used to create those
outputs. Mathematically
PO
I
=
-
8/14/2019 Oper Ati Ons St Rat Eg y an d Comp
16/23
Measuring Productivity
Productivity is a measure of how efficiently inputs are converted tooutputs
Productivity = output/input
Total Productivity Measure
Total Productivity = $sales/inputs $
Partial Productivity Measure
Partial Productivity = cars/employee
Multifactor Productivity MeasureMulti-factor Productivity = sales/total $costs
-
8/14/2019 Oper Ati Ons St Rat Eg y an d Comp
17/23
Competing on Productivity
At the national level, growing productivity
leads to a higher standard of living
holds inflation in check
enhances international competitiveness.
The annual growth in GDP is due to
growth in productivity
growth in inflation
(Macroeconomic Theory)
-
8/14/2019 Oper Ati Ons St Rat Eg y an d Comp
18/23
Productivity Portfolios
Investments in facilities and equipment
Investments in programs and systems
Investments in people.
(Note: these alternatives are not mutually
exclusive; however, most organizationstend to choose one as their dominant
orientation.)
-
8/14/2019 Oper Ati Ons St Rat Eg y an d Comp
19/23
ARAVIND
EYE CARESYSTEM
-
8/14/2019 Oper Ati Ons St Rat Eg y an d Comp
20/23
OVERVIEW
AECS - Founded in 1976 by
Dr. Govinda Venkataswamy
in Madurai
Goal Offer quality care atreasonable cost
In 2004, it performed 2,30,000eye surgeries and handled16,40,000 patient visits
MissionTo eradicate needlessblindness by providing appropriate, compassionate andquality eye care for all
-
8/14/2019 Oper Ati Ons St Rat Eg y an d Comp
21/23
STRATEGY USED
Art of MASS MARKETING Speedy and fast Division of
Work Quality Care & Productivity
at prices that everyone canafford
Core Principle Providingservices to rich and pooralike
Large Volume Care andWell organized system
Organizing Camps
-
8/14/2019 Oper Ati Ons St Rat Eg y an d Comp
22/23
-
8/14/2019 Oper Ati Ons St Rat Eg y an d Comp
23/23