OPMAN REPORTING

COMPETITIVENESS,
STRATEGY, AND
PRODUCTIVITY
Group 1
Competitiveness
determines how effective an organization meets the
wants and needs of the customers compared with
other companies offering similar products and
services. Competitiveness is a relevant factor to
evaluate if a company is successful, average, or
failing.
 Influence of Operation on
Competitiveness
1. Product and service design - The unique
characteristics and features of a product service is
an important factor in the consumer buying
behavior. Other key factors include innovation
and timely offering of the new products and
services.
2. Cost of an organization’s output - is a key variable
that affects pricing decisions and profits. The
company must see to it that they are minimizing costs
so it will make the price of their product competitive.

3. Location - can be important in terms of cost and

convenience for customers. The location of the
business or the store is an important competitive factor
of the business since most consumers are looking for
accessibility and convenience in going to the store.
4. Quality - refers to materials, workmanship, design,
and service. The products offered by different
companies differ in the raw materials used,
craftmanship, creativity, design and after sale
services.
5. Quick Response - can be a competitive advantage.
One way is quickly bringing new or improved products or
services to the market. Any company which can respond
quickly to the needs and wants of the consumers are
considered competitive advantage. Innovations to improve
the products like bringing new designs, colors and styles
are what the consumers are looking for
6. Flexibility - is the abilityto respond to change. High
flexibility can be a competitive advantage in a
changeable environment. Organizations, which are
more flexible and can adjust to the needs of the
consumers are considered to be competitive
advantage. Consumers always have other wants to
cope with the changing times, so the companies have
to be flexible, and shall offer innovations in their
products and services to be more competitive.
7. Inventory Management - can be a competitive advantage
by effectively matching supplies of goods with demand.
Inventory management is important since customers demand
should match with the number of supplies, which the
company can offer, therefore their products should be
available for the customers.
8. Supply Chain Management - involves coordinating internal
and external operations to achieve timely and cost-effective
delivery of goods throughout the system. The coordination of
all the middlemen who serves as link from production to
consumption should be properly managed in order to have
timely and cost effective in providing goods to the ultimate
consumers
 9. Service - involves after-sale activities customers
perceive as value-adding such as delivery, set up,
warranty work and technical support. The after-sale
services, which the company provides serve as one of
their competitive advantages compared with other
companies.
 10. Managers and Workers - are the people at the
heart and soul of an organization and if they are
competent and motivated, they can provide a distinct
competitive edge by their skillsand the ideas they
create.Motivating the managerand workers are the
reasons why the organizations maximize their profit
and become sustainable. They must see to it that
managers and workers are motivated and engaged in
performing their task so they can work effectively to
accomplish the objectives of an organization.
 Strategies
are plans for achieving organizational goals. To be
effective, strategies must be designed to support the
organization’s mission and goals. Organizational
strategies are the organization’s over-all strategies.
Functional strategies relate to each of the functional areas
of the organization. The functional strategies should
support the overall strategies of the organization. Tactics
are the methods and actions taken to accomplish
strategies.
Different Strategies used in Organizations
1. Low cost - Outsource operations to
third-world countries that have
cheaper cost of labor.
2. Scale-based strategies - Use capital-
intensive methods to achieve
maximum output at lowest cost per
unit.
 3. Specialization - Focus on narrow
product lines or limited service to
achieve higher quality.
4. Flexible Operations - Focus on quick
response and customization.
5. High Quality - Focus on achieving
higher quality than competitors.
6. Service - Focus on various aspects of
service (e.g. helpfulness, courteousness,
reliability).
7. Sustainability - Focus on
environmental-friendly and energy-
efficient operations.
 Strategy Formulation
is a process, which considers the process
of how organizations compete and assess
their own strengths and weaknesses so
they can take advantage and work on
their distinctive competencies. Strategy
formulation is almost always critical to the
success of a strategy.
 To formulate an effective strategy, senior
managers must consider the distinctive
competencies of the organizations and
they must scan the environment. Distinctive
Competencies are those special attributes
or abilities possessed by an organization
that gives them a competitive edge.
 Environmental Scanning is the processof
being aware of the trends in businesses
and knowing the threats and opportunities
for the company. Generally, these include
competitors’ activities, changing consumer
needs, legal, economic, political and
environmental issues, the potential for new
markets, etc.
 Another key factor to consider when developing
strategies is technological change, which can present
real opportunities and threats to the organization.
Technological changes occur in products (high-
definition TV, improved computer chips, improved
mobile phones, improved designs for earthquake-
proof structures); in services (faster order processing,
faster delivery), and in processes (robotics,
automation, computer-assisted processing, point-of-
sale scanners and flexible manufacturing systems).
External Factors used in Environmental
Scanning
1. Economic Conditions - These include the general
health and direction of the economy, inflation
rate, interest rate, tax laws and tariffs
2. Political Conditions - These include favorable or
unfavorable attitudes toward business, political
stability or instability and wars.
 3. Legal Environment - This includes antitrust laws,
government regulations, trade restrictions, minimum
wage laws, product liability laws and recent court
experience, labor laws, and patents.
4. Technology - This includesthe rate at which
productinnovations are occurring, current and future
process technology and design technology.
5. Competition - This includes the number and strength
of competitors, the basis of competition (price, quality,
special features) and the ease of market entry.
 6. Markets - These include size,
location, brand loyalties, ease of entry,
potential for growth, long-term stability
and demographics.
Internal Factors in Environmental Scanning
1. Human Resources - These include the skills and
abilities of managers and workers; special talents
(creativity, designing, problem solving); loyalty to
the organization, expertise; dedication and
experience.
2. Facilities and Equipment - Capacities, location,
age, and cost to maintain or replace can have a
significant impact on operations.
 3. Financial Resources - Cash flows, access to
additional funding, debt burden and cost capital
are important considerations.
4. Customers - Loyalty, existing relationships and
understanding of wants and needs are important.
5. Products and Services - These include existing
products and services and potential for new
products and services.
 6. Technology - This includes existing
technology, the ability to integrate new
technology and the probable impact of
technology on current and future operations.
7. Suppliers - Supplier relationships,
dependability of suppliers, quality,
flexibility, and service are typical
considerations.
Operations Strategy
Quality strategy is an important part of the
organization’s strategy, which relates to the quality of
the products and services they offer. It is a part of the
market and productivity strategies, which plays a very
significant factor in the profitability of an
organization.
 · External environment has to be considered in
developing the appropriate strategy to be used in the
company. External factors include the political factors,
economic factors, social factors, technological,
environment and legal factors. Other factors that shall
be considered in the choice of appropriate strategies
are the changing needs of customers, instability of the
market, stiff competition, lack of resources,
integration, and globalization.
 · Internal environment includes the
factorswithin the organization, which have to
be considered like the skills and capabilities of
the people, the competencies of the marketing
and management staff, research and
development staff and management
information system staff as well as technology
used by the company at present.
Principles of Quality Strategy
1.Quality strategy must be complete and covers
wide range.
2.The top management has to be aware of the
existence of the quality strategy and they have to
support its implementation.
3.Quality is an essential part of the company’s
process and it is considered the source of all other
values of the company.
 4.New quality strategy has to be innovative and
should adapt to the organization’s culture.
5.The implementation of strategy needs the support of
all the staff and there should be full involvement in
order to implement the new changes in strategy.
6.The implementation of Total Quality Management is
a must in adapting a quality strategy. The leadership
by quality as the main purpose is their guiding
principle where all the employees have to support and
participate.
7.The new workingmethods, which will use the
talent and vigor is essential to all the
employees.
8.The implementation of quality strategy will
reduce cost and increase productivity.
9.Understanding the quality strategy among
employees will mean the application of the
company’s mission to attain its purpose
(Quality Strategy, 2020).
 Time-based Strategy
strategy is the strategy that focuses on reduction of
time needed to accomplish tasks. Examples of time
reduction are the following:
1.Planning time. The time needed to react to a
competitive threat, to develop strategies and
selecttactics, to approveproposed changes to
facilities, to adopt new technologies, etc.
 2.Product/service design time. The time needed to
develop and market new or redesign products
orservices.
3.Processing time. The time needed to produce goods
or provide services. This can involve scheduling,
repairing equipment, methods used, inventories,
quality, training, etc.
4.Changeover time. The time needed to change from
producing one type of product or service to another.
This may involve new equipment settings and
attachments, different methods, equipment, schedules,
or materials.
5.Delivery time. The time needed to fillorders.
 6.Response time for complaints. These might be
customer complaints about quality, timing of deliveries
and incorrect shipments. These might also be
complaints from employees about working conditions
(e.g., Safety, lighting, heat or cold), equipment
problems or quality problems.
 Productivity
No matter how small or big the business is, it is
essential to measure and improve its productivity to
enhance its gross profits and be competitive.
Continuous improvement in all the areas of business
involves evaluating the company’s current business
practices to make some adjustments to its overall
management practices and systems.
 Productivity is an index that measuresoutput
(goods and services) relativeto the input (labor,
materials, energy, and other resources) used to
produce them.

Productivity = Output/Input
 Productivity refers to the rate of output per unit of
labor, capital, or equipment machines (input). We
can measure it in different ways. We can measure the
productivity of a factory according to how long it
takes to produce a specific good. In the services
sector, on the other hand, where units of goods do not
exist, it is harder to measure. Some service companies
base their measurement on how much revenue each
worker generates. They then dividethat amount by
their salary (Stevenson, 2014).
 In a factory, you can measure it by dividing the total
output by the number of workers. Imagine a table
factory that employs 200 people producing 4000
tables per day. The productivity of each employee is:

4000 (tables) ÷ 200 (workers) = 20 tables per worker

per day

Productivity in the manufacturing sectoris easy to

measure, it is the ratio of output to input and therefore
it is considered a measure of efficiency
Eight steps to improve productivity
1. Examine you production workflow - The
production current workflow has to be examined
across the organization to continuously monitor
the company’s activities and projects. This
includes monitoring the workforce, processes,
technology, communication, and other
management system throughout the organization.
This strategy will address some issues and
challenges and make corrections and adjustments.
2. Keep Informed of the Shop Processes - This process
involved identifying the problems in the workflow so
that changes and improvements can be made in the
production process. This process may include adding
more resources to different areas in the production
department, applying for ISO certification to maintain
quality in their systems, continuously evaluate the
performance of the staff and continuously provide
training for them.
 3. Invest in Employee Training and Continuous
Learning - Technology used in manufacturing is
consistently changing and there are always new
techniques, machines and equipment needed to
improve the productivity of the employees. In order for
the employeesto become more efficient, they have to
attend to regular trainings for them to be updated with
the latest technology in production and to upgrade
their skills.
 4. Have Genuine Expectations - To enhance the
production worker’s efficiency, it is important that
expectations have to be clearly cited, understood and
realistic to contribute to the worker’s efficiency and
productivity. Pressures from customers, expectations
and deadlines, which are stressful and not met can
contribute to unrealistic goals. Workers become
dissatisfied when their safety are compromised.
 5. Purchase of Smart Machine, Equipment and Tools -
Employees in the production sites can be productive if
their machines and equipment are in good condition
and highly technical. These equipment and
machines are expensive, which require training on the
part of workers who will operate it, however, despite its
cost it will have a positive long-run effect because of its
utility value. Organizations often see that upgrading
their machines, tools and equipment in the production
site will help the companysustain its competitiveness in
the market.
 6. Invest in Maintenance - The new equipment,
machines and tools can enhance the productivity,
however, proper maintenance is needed to ensure
that they will be working and will be used for a long
period of time. It is relevant that employees are
trained on the proper use of those equipment, tools,
and machines and how to trouble shoot in case there
will be error or problems in using it. The workers have
to be familiarized also with the manual and the
process of using those equipment.
7. Be Organized - Organizing the production
plant is a must in the manufacturing business in
order not to waste time and money.To increase
productivity, everything in the plant has to be
organized. There is always a place for
everything and everyone else in the production
plant.
 8. Collaboration - The production workflow will enhance
productivity if there is a culture of teamwork in the company.
When all the workers are united to achieve a common purpose
and work as a team, productivity may increase because less
time, effort and money will be used by the company to
accomplish the desired production output. Each worker has to
feel that he is an important part of the organization and he is
an asset to complete the task. This feeling will motivate them to
work more and be productive. For continuous improvement
and productivity to take place, the process, technology, and
people has to be taken care of by the management (Ltd.,
2020)
Productivity in the Service Sector
Service productivity is more difficult than
manufacturing productivity. In many situations, it is
more difficult to measure and thus to manage,
because it involves logical activities and a high
degree of variability. Medical diagnosis, surgery,
consulting, legal services, customer services and
computer repair work are examples. This makes
productivity improvements more difficult to realize.
 Factors that affect productivity in the organizations
include: Fax machines, automation, copiers, calculators,
Internet, computers, Voice mail, mobile phones, Email,
computerized billing, software, and others. Other
factors, which influence productivity are standardizing
processes and procedures, quality differences, use of
internet, computer viruses, searching for lost or
misplaced items wastes time, scrap rates, new workers,
safety, shortage of information technology workers and
other technical workers, layoffs, labor turnover, design of
the workspace, and incentive plans (Stevenson, 2014).
Thank You for
listening
Questions and discussions are now open.