Operational Management
Operational Management
Chapter 1: Strategy and competitiveness
OM (Operational Management) is use to create customer value through effective processes in both product and service-based organization.
Core competence
A bundle of skills that enable a firm to provide the greatest level of value to its customers in a way that is difficult for competitors to match and that provides for future growth. Core competences are embodied in the skills of the workers and in the organisation. They are developed through collective learning, communication and commitment to work across levels and functions in the organization and with customers and suppliers.
Order winner
A competitive characteristic that differentiates the products or services of one firm from another and causes a firm’s customers to choose the firm’s goods or services over those of its competitors. Order winners usually focus on one (rarely more than two) of the following strategic initiatives — price/cost, delivery speed, delivery reliability, product design, flexibility, after-market service and image.
• price
• delivery reliability
• delivery speed
• quality
• volume flexibility
• design, including product range, lead times and design leadership
• distribution
• marketing and sales
• brand name and image
• colour range
• being an existing supplier
• technical liaison and support
• After-sales support
Qualifier
A competitive characteristic that a firm must exhibit to be a viable competitor in the market.
The set of characteristics must be present in order for the firm to ‘qualify’ for the business.
Explain what is meant by strategy, strategic capability and competitive advantage.
Ever organization has a purpose and to achieve that purpose, a strategy outlining how to achieve that purpose is needed.
Strategy:
A set of broad statements that set the directions for the organization to take.
It specifies: how to satisfy customers how to grow the business how to
Chapter 1: Strategy and competitiveness
OM (Operational Management) is use to create customer value through effective processes in both product and service-based organization.
Core competence
A bundle of skills that enable a firm to provide the greatest level of value to its customers in a way that is difficult for competitors to match and that provides for future growth. Core competences are embodied in the skills of the workers and in the organisation. They are developed through collective learning, communication and commitment to work across levels and functions in the organization and with customers and suppliers.
Order winner
A competitive characteristic that differentiates the products or services of one firm from another and causes a firm’s customers to choose the firm’s goods or services over those of its competitors. Order winners usually focus on one (rarely more than two) of the following strategic initiatives — price/cost, delivery speed, delivery reliability, product design, flexibility, after-market service and image.
• price
• delivery reliability
• delivery speed
• quality
• volume flexibility
• design, including product range, lead times and design leadership
• distribution
• marketing and sales
• brand name and image
• colour range
• being an existing supplier
• technical liaison and support
• After-sales support
Qualifier
A competitive characteristic that a firm must exhibit to be a viable competitor in the market.
The set of characteristics must be present in order for the firm to ‘qualify’ for the business.
Explain what is meant by strategy, strategic capability and competitive advantage.
Ever organization has a purpose and to achieve that purpose, a strategy outlining how to achieve that purpose is needed.
Strategy:
A set of broad statements that set the directions for the organization to take.
It specifies: how to satisfy customers how to grow the business how to