Hps ability to follow the printer market

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HP’s ability to follow the printer market Differentiation (Better) Cost leadership (Cheaper) Southwest Airlines No-frills service Sony’s constant innovation of new products Pizza Hut’s five-minute guarantee at lunchtime Federal Express’s “absolutely, positively on time” Motorola’s automotive products ignition systems Motorola’s pagers IBM’s after-sale service on mainframe computers Fidelity Security’s broad line of mutual funds FLEXIBILITY Design Volume LOW COST DELIVERY Speed Dependability QUALITY Conformance Performance AFTER-SALE SERVICE BROAD PRODUCT LINE Operations Decisions Examples Specific Strategy Used Competitive Advantage
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87-47 10 Strategic OM Decisions 10 Strategic OM Decisions Goods & service design Quality Process & capacity design Location selection Layout design Human resource and job design Supply-chain management Inventory Scheduling Maintenance
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87-48 Operations Decisions Goods Services Goods & services decisions Product is usually tangible Product is usually intangible Quality Objective quality standards Subjective quality standards Process and capacity design Customer not involved in most of process Customer may be directly involved in process. Capacity must match demand to avoid lost sales Goods & Services and the 10 OM Decisions Goods & Services and the 10 OM Decisions
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87-49 Operations Decisions Goods Services Location Selection May need to be near raw materials or labor force Product is usually intangible Layout Design Layout can enhance production efficiency Subjective quality standards Human Resources and Job Design Workforce focused on technical skills. Labor standards consistent. Output-based wage system. Customer may be directly involved in process. Capacity matches demand to avoid lost sales Goods & Services and the 10 OM Goods & Services and the 10 OM Decisions – Continued Decisions – Continued
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87-50 Operations Decisions Goods Services Supply chain management Supply-chain relationships critical to final product Supply-chain relationships important, not necessarily critical Inventory Raw materials, work- in-process, and finished goods Most services cannot be stored Scheduling Ability to convert inventory may allow leveling of production rates Primarily concerned with meeting the customer's immediate schedule Goods & Services and the 10 OM Goods & Services and the 10 OM Decisions – Continued Decisions – Continued
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87-51 Goods & Services and the 10 OM Goods & Services and the 10 OM Decisions – Continued Decisions – Continued Operations Decisions Goods Services Maintenance Maintenance is often preventive and takes place at the production site Maintenance is often "repair" and takes place at the customer's site
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87-52 Process Design Process Design Low Moderate High Volume High Moderate Low Variety of Products Process-focused Job Shops (Print shop, emergency room , machine shop, fine dining Repetitive (modular) focus Assembly line (Cars, appliances, TVs, fast-food restaurants) Product-focused Continuous (steel, beer, paper, bread, institutional kitchen) Mass Customization Customization at high Volume (Dell Computer’s PC)
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