Areas of Operational Competitiveness
Operations strategies will be improved by decisions relating to the organisation’s productivity, competitive advantage and competitive scope.
Competing on Cost
For many organisation’s, reducing costs is a matter of working “smarter” by finding mew and improved ways to produce products efficiently.
Organisations can compete on costs through:
- Bulk buy inputs
- Achieving economies of scale
- Use automated production systems
- Produces high volume output
- Eliminate Waste
- Produce standardized products for larger markets
Competing on Cost improves productivity by:
- Ensuring stable production processes with limited interruption
- Ensuring all resources are used to their optimum advantage
- Constantly looking for opportunities to streamline production processes
- Updating facilitates and equipment with new, more efficient technology
- Providing training and development to improve the skills and capabilities of employees.
Competing on Quality
Many organisations compete on quality – that means that they aim to produce the best product or service available in the marketplace.
Organisations can compete on quality through:
- Immediately responding to the customers needs
- View quality as a competitive weapon
- Reduce defect rates in the production process
- Market themselves as a quality business
- Publicly communicate an organisation-wide commitment to quality
- Strictly comply with design specifications
- ‘Tailor’ products to customers
- Use technology to produce large numbers of customized products to varying specifications
Competing on the Speed of Delivery
Organisations can compete on the speed of delivery through:
- Having flatter management structures
- Maintain a corporate culture expecting ongoing and radical change
- Promote a sense of urgency within the organisation
- Respond quickly to changes in demand
- Identify and act on trends quickly
- Reduce the problems associated with bureaucracy
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