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Internet research and Case let
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all
tasks
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Product
Quality Process Location Layout Human resource Supply-chain Inventory Scheduling Maintenance
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FLEXIBILITY Sonys constant innovation of new products....Design HPs ability to follow the printer marketVolume Southwest Airlines No-frills service....LOW COST Pizza Huts five-minute guarantee at lunchtime......Speed Federal Expresss absolutely, positively on time...Dependability Motorolas automotive products ignition systems......Conformance Motorolas pagers...Performance IBMs after-sale service on mainframe computers....AFTER-SALE SERVICE Fidelity Securitys broad line of mutual funds.BROAD PRODUCT LINE
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DELIVERY
Differentiation (Better)
QUALITY
Cost leadership (Cheaper)
Response (Faster)
Figure 2.4
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Process Design
High Process-focused JOB SHOPS (Print shop, emergency room, machine shop, fine dining Mass Customization Customization at high Volume (Dell Computers PC) Repetitive (modular) focus ASSEMBLY LINE (Cars, appliances, TVs, fast-food restaurants)
Variety of Products
Moderate
Low Low
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Product Heavy R&D; labs; focus Selection and on development in a Design broad range of drug categories Quality
Major priority, exceed Meets regulatory regulatory requirements requirements on a country by country basis
Table 2.2
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Layout
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Supply Chain
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Maintenance
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Growth
Practical to change price or quality image
Strengthen niche
Maturity
Poor time to change image, price, or quality
Competitive costs become critical Defend market position
Decline
Cost control critical
CD-ROM
Internet Color printers Drive-through restaurants
Fax machines
Sales
Flat-screen monitors
DVD
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Figure 2.5
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Growth
Product and process reliability Competitive product improvements and options Increase capacity Shift toward product focus
Maturity
Less rapid product changes more minor changes
Decline
Little product differentiation Cost minimization
OM Strategy/Issues
Frequent product and process design changes Short production runs High production costs
Optimum capacity
Increasing stability of process Long production runs Product improvement and cost cutting
Limited models
Attention to quality
Enhance distribution
Reduce capacity
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Figure 2.5
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Competing on Cost
Offering product at a low price relative to competition
Competing on Quality
Quality is often subjective Quality is defined differently depending on who is defining it Two major quality dimensions include
High performance design:
Superior features, high durability, & excellent customer service
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Competing on Time
Time/speed one of most important competition priorities
On-time delivery:
Deliver product exactly when needed every time
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Competing on Flexibility
Company environment changes rapidly Company must accommodate change by being flexible
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
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They focus on customer service, cost, and speed ERP system developed to allow customers to order directly from Dell Product design and assembly line allow make to order strategy lowers costs, increases turns Suppliers ship components to a warehouse within 15 minutes of the assembly plant - VMI Dell set up a shipping arrangement with UPS
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