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Chapter 2 Competitiveness

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We have made all necessary travel arrangements in advance. ... Tour. Contact a travel agency (Westmoor) Review various tours available ... – PowerPoint PPT presentation

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Title: Chapter 2 Competitiveness


1
Chapter 2 Competitiveness
  • Competitiveness, Strategy, and Productivity

2
Productivity - Macro
  • Macro vs. micro (U.S. vs. Joe Smith)
  • U.S. productivity high or low? Why? -
    Growing?
  • Q102 8.6 Q202 1.1
  • Value-added/hour (source ILO 2001)
  • France 33.71
  • Belgium 32.98
  • United States 32.84

3
Business Productivity - Quarterly Change
(Source data.bls.gov)
4
Manufacturing Productivity - Quarterly Change
(Source data.bls.gov)
5
Nonfarm Productivity - Quarterly Change
(Source data.bls.gov)
6
Productivity - TFP
  • Total Factor Productivity (TFP)
  • Incorporates technological progress, management
    techniques, smart work
  • Developed by Robert Solow (MIT)
  • Won Nobel Prize for Economics in 1987
  • TFP observations
  • McKesson productivity gain (2000-2001)
  • 3.9 - (0.4 x 2.0) 3.1
  • Top 8 companies in energy industry
  • Source USATODAY.com 7/29/02

7
Who Works the Most?
  • Comparative figures (source ILO 2001)
  • hours/year
  • Germany 1478
  • United Kingdom 1728
  • Japan 1878
  • United States 1978

8
Productivity - Micro
  • Productivity Output / Input
  • Single factor productivity
  • Usually labor productivity input
  • See Ex. 2
  • Multi-factor productivity
  • Usually labor, material and overhead productivity
    inputs
  • See Ex. 3

9
What is a customer?
  • Richard Schonberger The customer is the next
    process
  • Final Customer vs. next customer
  • The Big C vs. the little c
  • Who is/are my customer(s)?
  • Who is/are your customer(s)?

10
Total Customer Experience
  • I believe that HP owes our customers a superior
    Total Customer Experience (TCE) when dealing with
    us, and I am personally committed to improving
    TCE and making it a competitive differentiator
    for HP.
  • Carly Fiorina
  • Former President and CEO, Hewlett-Packard

11
Total Customer Experience
  • Customers are our most important assets
  • Customers always define their own desired
    experience
  • Need to be close enough to anticipate their needs
    and flexible enough to meet them
  • Important to develop deeper relationships with
    end users
  • Carly Fiorina

12
Making a TCE
13
What Do Customers Want?
  • _________ ____________
  • _________ ____________
  • _________ ____________
  • _________ ____________
  • _________ ____________
  • _________ ____________

14
Principles of Operations Mgmt.
  • Richard Schonberger
  • 15 principles grouped into 7 categories
  • Customers
  • Company
  • Competitors
  • Design and organization
  • Capacity
  • Processing
  • Problem solving and control
  • See Word document on the website

15
Principles of OM (Schonberger)
  • Customers
  • Know and team up with next and final customer
  • Continual, rapid improvement in customers wants

16
Principles of OM (Schonberger)
  • Company
  • Unify purpose through shared information and team
    involvement

17
Principles of OM (Schonberger)
  • Competitors
  • Know the competition and world-class leaders.

18
Principles of OM (Schonberger)
  • Design and Organization
  • Cut the number of components, operations, and
    suppliers
  • Organize resources into multiple, focused chains
    of customers

19
Principles of OM (Schonberger)
  • Capacity
  • Invest in cross-training, education, job
    rotation, and improved health, safety and
    security
  • Improve present equipment and human work before
    buying new equipment or automating
  • Use simple, flexible, low-cost equipment

20
Principles of OM (Schonberger)
  • Processing
  • Make it easy to make products without error or
    variation
  • Cut flow time, distance, inventory
  • Cut setup and changeover times
  • Operate at the customers rate of use.

21
Principles of OM (Schonberger)
  • Problem solving and control
  • Record and own data at the workplace give
    front-line workers first chance to solve problems
  • Cut transactions and reporting control causes,
    not symptoms

22
Strategy Foundation
  • Mission What are we in business for?
  • Vision Where do we see ourselves n years from
    now?
  • Objectives broad statements about fields of
    interest, customers, employees, community, RD,
    profit, etc.
  • Goals quantitative measures for a time period

23
Strategy
  • Strategy plans for achieving goals
  • Organizational vs. functional strategies
  • Creating a strategy
  • SWOT analysis
  • Distinctive competencies
  • Quality and time based strategies

24
Tactics and Operations
  • Tactics methods and actions for implementing
    strategy
  • Operations specific tasks or activities based on
    strategy and tactics

25
Mission Examples
  • College of Business
  • The SJSU College of Business is the institution
    of opportunity providing innovative business
    education and applied research for the Silicon
    Valley
  • Alzheimers Association
  • Creating a world without Alzheimers disease and
    enhancing quality of life for those who live with
    it.

26
Example
  • Planning a trip to Paris

27
Mission Statement
The mission is to make travel arrangements, learn
a sufficient amount of information about Paris,
and gain sufficient knowledge of French grammar,
vocabulary, and pronunciation in order to
comfortably travel in and about Paris on a brief
visit.
28
Vision Statement
I am confident in guiding my family in and around
Paris. We have made all necessary travel
arrangements in advance. I know the sites and
events that we want to see and lead my family
effortlessly. I am familiar with transportation
modes and easily make any reservations and buy
tickets. I communicate adequately with French
people with whom we come in contact, including
hotels and restaurant personnel, transportation
personnel, police, ticket sellers, and average
French citizens.
29
Objectives
  • Make travel reservations in advance
  • Determine sites to see and any events to attend
  • Learn conversational French
  • Document plans and schedules

30
Goals
  • Make reservations by March 1
  • Lay out sightseeing itinerary by May 1
  • Complete French conversational training by May 15
  • Review all plans, schedules and arrangements by
    5/20

31
Strategy
  • Select a tour
  • Study guidebook(s) on Paris and environs
  • Study basic French language vocabulary
  • Take conversational French course at local school
  • Prepare file to document plans

32
Tactics - 1
  • Tour
  • Contact a travel agency (Westmoor)
  • Review various tours available
  • Select tour based on dates and itinerary
  • Fill out paperwork and pay deposit
  • Make air reservations and pay for tickets

33
Tactics - 2
  • Guidebooks
  • Select guidebook (Fodors _at_ Crown Books)
  • Skim book
  • Read selected sections carefully
  • Make notes on
  • places to see, things to do, customs
  • transportation
  • restaurants
  • maps and currency

34
Tactics - 3
  • French vocabulary
  • Seek available Conversational French course
    (FUHSD)
  • Book time in personal schedule
  • Enroll in course
  • Buy text (Just Listen n Learn French)
  • Attend class
  • Perform all assignments

35
Tactics - 4
  • Documentation
  • Prepare file folder for material and find space
    in file cabinet
  • Create Word document for information
  • Copy and file material to be referenced
  • Maintain Word file

36
Operations
  • All the activities and tasks supporting the
    tactics, strategy, goals, objective, vision and
    mission involving the visit to Paris
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