MIDTERM STUDY GUIDE

MIDTERM STUDY GUIDE - 2. Operations Strategy: Long-range...

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2. Operations Strategy : Environmental scanning . Core competencies : Unique strengths of a business. Includes 1)workforce 2)facilities 3)Market understanding 4)financial know-how and 5)technology Competitive priorities : Capabilities that the operations function can develop in order to give a company a competitive advantage in its market: 1) Cost 2) Quality 3)Time 4)Flexibility Need for trade-offs : The need to focus more on one competitive priority than on others. (trade-off between the 4 competitive priorities to get the right mix) Order winners : Competitive priorities that win orders in the marketplace Order qualifiers : Competitive priorities that must be met for a company to qualify as a competitor in the marketplace. Types of technologies : Product technology : any new tech developed by a firm (Teflon, etc) Process technology Information Technology : enables communication, processing, and storage of information (enterprise resource planning systems, etc) Measuring productivity : Productivity: Measure of how efficiently an org converts inputs into outputs. Total Productivity: Productivity computed as all output to all organizational inputs Partial productivity: ratio of output to only one input Multifactor productivity: ratio of output to several, but not all, inputs Productivity in services : Trad prod mrs tend to focus on tangible prods, which makes evaluating service quality difficult. Prod gains in the service industry have been slower than the mfg. ind. 3. Product design, Process Selection Product design : The process of defining all of the product’s characteristics. Service design Steps Benchmarking : studying practices of companies considered “best-in-class” and comparing your company’s performance against theirs. Reverse engineering : process of disassembling a product to analyze its design features Breakeven analysis : used to compute amount of goods a comp would need to sell to cover all its costs. Tot Rev=Tot Cost Stages of the product life cycle : A series of stages that products pass through in their lifetime, characterized by changing product demands over time. Early stages Introduction : all the “bugs” still getting worked out- uncertain customers Growth : product takes hold (still improving product) Later Stages Maturity : demand levels off, usually no des changes, mrkt is predictable (worry abt efficiency) Decline : usually bc of new tech, better product design or market saturation
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This note was uploaded on 02/11/2012 for the course BUSINESS 364 taught by Professor Davig during the Spring '11 term at Berea.

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MIDTERM STUDY GUIDE - 2. Operations Strategy: Long-range...

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