Microsoft PowerPoint gos-chapter4-Competency ppt [Compatibility Mode]

Table
 
4.1
Evolution
of
competencies
in
history
Time Competency 
Examples 
Pre-1960s 
Cost 
Carnegie and scale, Ford assembly-line production 
Mid-1960s 
Productivity and cost
(Focused factories) 
SKF (Swedish ball bearing factory) 
1970s 
Flexibility 
Honda-Yamaha variety war, GM 
1980s 
Quality 
Ford-GM quality competition, Martin, Toyota 
1990s 
Time 
Toyota, Dell, Honda, Citicorp, AT&T, GE, HP 
2000s VBC 
Nestlé, Walmart, GE, Google, IBM 

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CASE EXAMPLE: TOYOTA
Case questions
1. How has Toyota contributed to the historic development of 
operations strategy?
2. What are the competencies to which Jidoka, JIT, TPS, lean 
manufacturing and the Toyota way, respectively, contribute?
3. In January 2010, Toyota suspended US sales of several car and truck 
models to fix sticking gas pedals; as part of this course of 
action, Toyota recalled 2.3 million vehicles. How do you view new 
challenges of global quality risk facing Toyota?
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4.2 COST COMPETENCY
4.2.1 Concept of cost competency
A 
defensive cost-based strategy 
is achieved by maintaining low prices 
to attract price-sensitive customers in the targeted market segment, or 
via the low price-performance ratio, which refers to a product’s 
ability to deliver performance while charging a lower price. 
An 
aggressive cost-leadership strategy 
provides products and services 
at the lowest price, tries to win the largest market share, uses costs 
and price as strategic weapons with which to attack rivals and builds 
dominance in the global marketplace. 

Prior to 2009, laws in France essentially forbade retailers from 
price competition. Carrefour was therefore forced to pursue a 
quality-based strategy. When the pricing laws were subsequently 
loosened, Carrefour found it was not as competitive as it had been. 
After Lars Olofsson became chief executive, in January 2009, 
Carrefour restored its low-price strategy in hypermarkets as a means 
of combating discounters. Whereas Carrefour stores previously had 
banners which bore the slogan “quality for all”, most in-store 
advertising now focuses on “the lowest price”. Carrefour has used 
low cost to win cost leadership in the global marketplace.
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4.2 COST COMPETENCY
4.2.2 Approaches to the achievement of cost competence
1. Scale-related cost
2. Variety-related cost
3. Total landed cost
4. Total cost of ownership
5. Cost-based technology 
6. Cost-based process
7. Cost-based resources
8. Cost-based facilities
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