Overview of Competitiveness,

Strategy &Productivity

Dr. T. T. Kachwala

Overview of Competitiveness, Strategy

& Productivity
Competitiveness
Mission/Strategy/Tactics
Operations Strategy
Productivity Definition, Measures of Productivity,

Methods of improving Productivity.

Video (McDonalds Made for You)
Productivity in Service Sector

Slide 2

Slide 3

Competitiveness
Competitiveness: How effectively an organization

meets the wants and needs of customers relative to

others that offer similar goods or services (Exercise)
Competing using Marketing: Identifying Consumer
wants and needs, Pricing, Advertising and
Promotion (SWOT O & T)
Competing using Operations: Product and Service
Design, Cost, Location, Quality, Quick response,
Flexibility, Inventory Management, Supply Chain
Management, & Services (SWOT S & W)
Two basic issues :

First: What do the customers want?

Second: What is the best way to satisfy those wants?

Slide 4

Mission/Strategy/Tactics

Mission

Strategy

Tactics

Mission:

The reason for existence for an

organization, the mission statement states the
purpose of an organization & the Goals provide
more detail and describe the scope of Mission

Strategies: Plans for achieving Organizational Goals

Tactics:

The methods
accomplish Strategies

and

actions

taken

to

Slide 5

Mission/Strategy/Tactics
Mission
Goals
Organizational Strategies
Functional Goals
Finance
Strategies

Marketing
Strategies

Operations
Strategies

Tactics

Tactics

Tactics
Operating
procedures

Operating
procedures

Operating
procedures

Slide 6

Mission/Strategy/Tactics
Example: Student would like to have a career in
business, have a good job, and earn enough income to
live comfortably
Mission:
Goal:

Live a good life

Successful career, Good income

Strategy:

Obtain an MBA education from reputed college

Tactics:

Select a reputed college and a specialization

Operations: Register, buy books, take courses, study,

graduate, get job using college placements

Slide 7

Operations Strategy
Operations

strategy:

The

approach,

consistent

with

organization strategy, that is used to guide the operations

function.
Examples of strategies: Low cost, Scale-based, Specialization,

Flexible operations, High quality, & Service

Quality-based strategies: Focuses on maintaining or improving

the quality of an organizations products or services for both

attracting & retaining Customers
Time-based strategies: Focuses on reduction of time needed

to accomplish tasks
What are the strategies of World Class Companies?

Slide 8

Definition of Productivity
1.

The term Production is absolute. While the term

Productivity is relative (output relative to input)

2.

It is ratio of output & input

i.e. Productivity = (Measure of output) / (Measure of input)

3.

Productivity can be defined as incremental change in output

for a unit change in input.

Slide 9

Measures of Productivity
1.

Partial Measures
1.

Labor productivity = Output (units) / Labor (hours)

2.

Material Productivity = Output (units) / Material (kgs)

3.

Machine Productivity = Output (units) / Machine (hours)

2.

Multifactor Productivity Index = Output (units) / (Labor + Material + Machine)

3.

Total Productivity Index = Output (units) / (All inputs used)

Slide 10

Methods of improving Productivity

1.

Increase the output for the same input (Quality

Management)

2.

Decrease the input for the same level of output

(Reducing Wastage)

3.

Small increase in input resulting in a

substantial

increase

in

Investments in new facilities)

output

(Capital

Slide 11

Productivity Gains at Whirlpool

1.

The

plant

is

competing

against

the

foreign

manufacturers with much lower labour cost

2.

The issue really is the labor content and the product

i.e. Labour Productivity

3.

Productivity at Whirlpool 139% of the average of

the industry, and rising by about 5% per year

4.

Whirlpool

uses

gain

sharing

program

called

performance share & promises employees no job

loss because of productivity gains

Slide 12

Productivity in Service Sector

1.

More difficult to measure & manage because it involves

intellectual activities & high degree of variability: for example
medical diagnosis, consultancy & legal services

2.

Some of the factors that affect Productivity are Methods, Quality,

Technology & Management (McDonalds Made for You)

3.

Standardizing Processes & Procedures where ever possible to

reduce variability can improve Productivity & Quality: for
example Burger Kings combined menu items in meal packages
such as a burger, fries & soft drink which reduced time to take and
process the order & this resulted in increased productivity

Thanks and Good Luck

Have a nice Day
Dr. T. T. Kachwala