Value Disciplines PPT.ppt
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This document discusses different value disciplines that companies can pursue to achieve competitive advantage: operational excellence, product leadership, and customer intimacy. It provides examples of companies that exemplify each discipline. Operational excellence focuses on reliable, low-cost products and services, like McDonald's. Product leaders focus on cutting-edge products through invention and development, like Johnson & Johnson. Customer-intimate companies focus on advisory services and relationships, like Home Depot. Companies must align their operating models, including processes, structure, culture and management systems, with their chosen value discipline to succeed.
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Organized around five-step plan, DMAIC
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Measure
Analyze
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Control (Reid, 2012)
This Photo by Unknown Author is licensed under CC BY-NC
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Controlled by taking statistical samples
Sampling used for detecting and correcting faults
Provides:
Standard of desired action or result
Means of measuring or comparing the actual action or result
Corrective action when the result deviates from acceptable standard
This Photo by Unknown Author is licensed under CC BY-NC-ND
Just in Time
Faster customer response and reduced waiting time
Improves productivity
Reduces waste and excess inventory
This Photo by Unknown Author is licensed under CC BY-NC-ND
Factors for Location Decision
Proximity to customers
Proximity to labor source
Proximity to suppliers
Community considerations
This Photo by Unknown Author is licensed under CC BY-SA
Three Step Process
Identify dominant location factors
Develop location alternatives
Evaluate location alternatives
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Key concepts related to capacity planning and facility location for the new location
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Session | The Neurological Levels of Team-working: Harmony and Tensions
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- 2. Introduction Three areas to achieve Competitive Advantage : - Operational Excellence - Product Leadership - Customer Intimacy. Operational Excellence: providing customers with reliable products or services at competitive prices. Little inconvenience. Product Leadership: state of the art. Customer Intimacy: Superior Customer- relationship management
- 3. Learn From Examples What do we learn from operating models made up of operating processes, business structure, management systems, and culture, all organized to create value at a profit. Different value disciplines demand different operating processes. McDonaldss customers love consistency, speed, and meal value.
- 4. Operationally Excellent Stellar at core processes/product supply. Expedient customer service/demand management. Plus fine tune your structure to empower the people who can make a difference in producing value. You make sure your staff is indoctrinated with your specific definition of success.
- 5. Product Leaders vs. Customer-Intimacy Critical processes include invention, product development, and market exploitation. See details about this topic in this article. Customer Intimacy companies demonstrate superior aptitude in advisory services and relationship management. Products Leaders: Johnson & Johnson Customer Leaders: Home Depot.
- 6. Companies that exceed in the same disciplines have remarkably similar operating models. Management systems, business structures and the culture of product leaders look alike. The similarities end. Homogeneity exists only among leaders in the same value discipline. Product Leaders vs. Customer-Intimacy
- 7. Operational Excellence Operationally excellent companies deliver a combination of quality, price, and ease of purchases that no one else in their market can match. Remember they are not product or service innovators and they are not known for their one-to-one relationships with customers. They execute exceptionally and guarantee low price and/or hassle-free service to their customers.
- 8. Operational Excellence Focused on the delivery system outsmarting Compaq and IBM. Outperformed PC computer dealers by selling to customers directly and by building to order rather than carrying a large inventory. Integrated companys logistics with its suppliers. Undercut Compaq and other PCs in price while providing high quality products and services.
- 9. Check Out Price Operational Excellence Example Club store with only 3,500 items compared to 50,000 in competitors. As a customer Price/Costco evaluates leading brands and best values for customers and makes the decision for you. New items are added that meet the criteria. This keeps you coming back. Follows an operating model buying larger quantities and negotiate better prices, carrying items that sell well. They have good tracking systems on products. They optimize floor space and the organization operates well.
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