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

Fig.4.1
 
Approaches
to
achieving cost competency
Scale
‐
related
 
cost
Cost
competency
Total
 
landed
 
cost
Total
 
cost
 
of
 
ownership
 
Variety
‐
related
 
cost
Cost
‐
based
technology
Cost
‐
based
process
Cost
‐
based
resource
Cost
‐
based
facility

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CASE EXAMPLE: RYANAIR AIRLINE
Case questions
1.
Why did Ryanair decide to implement a low-cost strategy?
2.
What are the benefits to being a low-fare airline?
3.
Which approach (see Fig.4.1) has Ryanair used to achieve cost 
competency?
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4.3 FLEXIBILITY COMPETENCY
4.3.1 Concepts of flexibility and flexibility competency
Flexibility is a competency which is associated with uncertainties and 
risks, and with an ability to respond and conform to new environments. 
Upton (1994) has defined flexibility as “the ability to change or 
react with little penalty in time, effort, cost or performance” (p. 
73), and thinks flexibility can be characterized by three major 
attributes: dimensions, time horizon and elements. 
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4.3 FLEXIBILITY COMPETENCY
4.3.1 Concepts of flexibility and flexibility competency
The changes in the global environment and to global risks have made 
flexibility one of the competencies that firms must deal with. 
Globalization increases exchange-rate risks, political risks and global 
customer heterogeneity risks, and imposes new requirements on 
flexibility competency. 
Furthermore, globalization has influenced the scope (e.g., product 
scope) and time (e.g., increasing delivery time due to global 
transportation networks as opposed to regional logistics) of 
flexibility, in addition to having affected the difficulty of handling 
flexibility on a global scale. 
On the other hand, globalization has provided more methods (e.g., 
increasing operational flexibility under exchange-rate risks or 
considering global tax system differences), resources (e.g., increasing 
the number of suppliers available) and processes (e.g., manufacturing 
and design out-scouring) with which to deliver flexibility competency.
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4.3 FLEXIBILITY COMPETENCY
4.3.1 Concepts of flexibility and flexibility competency
The dimension of flexibility
1.
Hierarchical classification
A simple classification of flexibility can be made according to a 
hierarchy: 

flexibility in an individual machine or server,

flexibility in manufacturing workshop or service units, 

flexibility in a manufacturing plant or service system and 

flexibility in a multi-plant manufacturing system or multiple-
facility service system.
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4.3 FLEXIBILITY COMPETENCY
4.3.1 Concepts of flexibility and 
flexibility competency
The dimension of flexibility
2. Scope and time dimensions

Scope flexibility is a competency in 
an environment with uncertainties of 
product mix or product scope, and it 
allows a firm to adapt to a changing 
demand mix. 

Time flexibility, or agility (the 
more common term), is a competency 
which allows firms to rapidly shift 
their focus between activities. 

Full flexibility covers both scope 
flexibility and agility.
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