Areas of Operational Competitiveness

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