Business Operation Questions
- What are core competencies, key performance indicators and critical success factors? How do they differ?
Core competencies are the functions and procedures applied by an organization to successfully utilize its resources. In the review of strategic capacity, the consideration and deployment of the resources are important. There are two distinct competency levels. There are threshold competencies which incorporate the operations one must be proficient at to receive consideration as a potential supply chain element.
The core competencies are functions in which mastery is attained and they are very difficult for the competition to replicate. The core competencies form the foundation for competitive advantages. Paradigms of core competencies would entail the following:
- An intricate IT department which facilitates precise and complex demand forecasting.
- An organizational culture promoting innovation.
- The capacity of sharing k knowledge throughout the entire organization.
Key performance indicators are a collection of metrics facilitating the evaluation of an organization’s production over a period. Management personnel and stakeholders use the metrics to ascertain the manner a company is attaining its strategic and organizational objectives. In addition, the KPI’s enable the comparison of the organization to other actors in the industry.
In the creation of the strategy, the organizations will take into consideration the alignment between their proprietary competencies and the mastery required to effectively compete in the selected markets. An important factor of success with the businesses is the potential of whether they have the capacity of achieving the important success elements. The attainment of the critical success factors empowers the organization to more effectively compete with rivals in the environment. The significant success components are elements required for performance that is integral to the success of the business.
In this perspective, the CSFs should be perceived as the features of the product or service desired by the clients. The critical success elements enable the organization to perform more efficiently than competitors. The critical success factors in the automotive industry are the more efficient marketing network, organizational production and styling of the car. In the food processing industry, an example is the application of low-fat ingredients to make the food more healthful.
2. Explain what factors affect the degree to which operation managers are involved across a company’s entire supply chain, why?
The primary factors affecting operations managers’ integration of their activities in the supply chain involves communication and interpersonal aptitudes. Operational managers have the requisite of effective communication abilities and interpersonal skills to enable the coordination of the functions of the distinct parts of an organization. The operation managers enable communication between the departments and staff. There are instances when the operation managers will mediate disagreements and disputes. The operation manager occupies an important role in an organization.
The duties of the operations manager are different with each industry. The operations manager primary function is the flow of effective communications. The administration of resources is another area where the operation manager must have expertise. The review of purchasing and inventory are important aspects of the operation managers’ function. The human resource responsibilities of the operations manager include the hiring of staff and the determination of the organization’s needs.
3. If in forming supply strategies as an accompaniment to operational strategies begins with managing the relationship between the firm and other organizations with which it deals directly, what are the goals of the supplier relationship and how do these goals affect operations?
The first goal of the relationship between the organization and its supply chain elements is customer satisfaction. The reasoning behind supply chain administration is to make the inventory accessible to the client regarding situations to satisfy demand. It is impossible to sell from an empty cart. The products must be ready and available to the clients. Businesses have the goal of coordinating supply and demand through the effective application of supply chain resources.
The second objective of the supply chain – organization relationship is the creation of value for the consumers. It is not enough to provide cost efficient satisfaction. There must be a market driven approach founded on the concisely comprehended customer requisites. The design of the supply chain and its capacities should originate from the requisites of the clients. The third goal is the improvement of the organization’s capacity of responding to changing conditions. The adaptability to changing conditions including globalization, increased client anticipations and times of economic distress.