Microsoft PowerPoint gos-chapter4-Competency ppt [Compatibility Mode]
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See discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/299706608 Basic Concepts of Global Operations Strategy Chapter · April 2013 DOI: 10.1007/978-3-642-36708-3_1 CITATION 1 READS 41,240 1 author: Yeming Gong emlyon business school 197 PUBLICATIONS 2,812 CITATIONS SEE PROFILE All content following this page was uploaded by Yeming Gong on 21 November 2018. The user has requested enhancement of the downloaded file. CHAPTER OBJECTIVES • To introduce the evolution of operational competencies. • To present a competency-based view of global operations strategy. • To introduce concepts of global operational competencies, including time-, quality-, cost-, flexibility- and value-based competencies. • To discuss the roles of competencies in global operations strategy. • To address approaches to achieving competencies. 2 4.1 INTRODUCTION TO OPERATIONAL COMPETENCIES Prior to the 1960s, the common operational competency was cost and economies of scale represented the main approaches to achieving cost competency. Andrew Carnegie (1835-1919) increased the scale available to his operations by vertically integrating iron and coal mines, steel production and other steel-related operations to become the most efficient steel producer in the world. Another representative thought is the famous quote by Henry Ford, the founder of the Ford Motors, “You can have any color you want as long as it is black”. Ford applied assembly line manufacturing to the mass production of affordable automobiles. 3 4.1 INTRODUCTION TO OPERATIONAL COMPETENCIES Prior to the 1960s, the common operational competency was cost and economies of scale represented the main approaches to achieving cost competency. Andrew Carnegie (1835-1919) increased the scale available to his operations by vertically integrating iron and coal mines, steel production and other steel-related operations to become the most efficient steel producer in the world. Another representative thought is the famous quote by Henry Ford, the founder of the Ford Motors, “You can have any color you want as long as it is black”. Ford applied assembly line manufacturing to the mass production of affordable automobiles. 4 4.1 INTRODUCTION TO OPERATIONAL COMPETENCIES In the middle of the 1960s, responding to a “productivity crisis”, Japanese manufacturers identified a new source of competitive advantage—the focused factory, which produced goods either made nowhere else or which targeted a high-volume market segment. Western manufacturers such as the Swedish ball-bearing factory SKF adopted Japanese strategies and focused each factory on products best suited to the particular factory. Skinner (1974) summarized these strategies and proposed the concept of “focused factories”, which suggested that manufacturers focus each plant on a limited, concise, manageable set of products, technologies, volumes, and markets, and that they structure their basic manufacturing policies and support services to focus on a specific manufacturing task. 5 4.1 INTRODUCTION TO OPERATIONAL COMPETENCIES Alfred Sloan made creative use of product varieties and market segment strategy—exemplified by the maxim, “a car for every purse and purpose”—by positioning Chevrolet at the low end of the market to attack Ford and Cadillac at the high end of the growing automobile market. In the 1970s, flexible factories and strategies focused on product variety became popular, highlighted in particular by the so-called “variety wars” of the late 1970s and early 1980s, a business war fought between Honda and Yamaha in the motorcycle market. In 18 months, Honda introduced 113 motorcycle models, and in the process devastated Yamaha. 6 4.1 INTRODUCTION TO OPERATIONAL COMPETENCIES In the 1980s, quality became a popular operational competency, although it had been considered as a success element for long time. In explaining quality management, Philip Crosby famously wrote, “Quality is free”. This realization contributed to Crosby’s decision to initiate a “zero defects” program at the Martin Company. The increase in quality competency was associated with increased competition between Ford and GM in the 1980s. In 1981, Ford’s sales were falling, which led the company to recruit a quality management guru, W. Edwards Deming, to assist the company in improving the quality of its products. Donald Petersen, then Chairman of Ford, said, “We are moving toward building a quality culture at Ford and the many changes that have been taking place here have their roots directly in Deming’s teachings.” In 1986, Ford’s earnings exceeded those of its rival GM for the first time since the 1920s. 7 4.1 INTRODUCTION TO OPERATIONAL COMPETENCIES Stalk (1988) introduced the concept of “time-based competition” and argued that a firm’s competitive advantage lay in its ability to rapidly deliver products or services. By the 1990s, many firms had adopted time-based operations strategies, including Toyota, Honda, Citicorp, AT&T, GE and HP. Dell used an on-time-delivery (OTD) strategy, a cornerstone of many operations strategy, which promised product shipment within five days of receiving the order and two-day delivery. 8 4.1 INTRODUCTION TO OPERATIONAL COMPETENCIES In the 2000s, firms emphasized social and environmental values in global manufacturing and service. Going beyond corporate social responsibility (CSR), Porter introduced the concept of “creating shared value” (CSV), which sought to link social and economic values, exert a larger influence without the limitations of a CSR budget and achieve value-based competency (VBC). Many companies, including GE, Google, IBM and Nestlé, have since sought to implement a global operations strategy (GOS) to aid in their pursuit of VBC. 9 4.1 INTRODUCTION TO OPERATIONAL COMPETENCIES 10 Yüklə 260,62 Kb. Dostları ilə paylaş:
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