group 1 TQM

• Competitiveness


  The capacity of a company or industry to innovate and improve, produce, and market products in better conditions of price, quality, and opportunity than its rivals
• Critical factors of customer satisfaction in relation to business competitiveness

  • Product quality
  • Service quality
  • Price
• Competitive advantage


  • Something that cannot be easily replicated and is exclusive to a company or business
  • Value created internally that sets the business apart from its competition
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  The productivity with which a location uses its human, capital, and natural endowments to create value
• Strategy


  Plans for achieving organizational goals
• Tactics


  Methods and actions used to accomplish strategies
• Types of operational strategies


  • Corporate strategy
  • Customer-driven operational strategy
  • Core competencies strategy
  • Competitive priorities strategy
  • Product or service development strategy
  • Cost-driven strategies
  • Outsourcing strategy
  • Flexibility strategy
• SWOT analysis


  Analyzing the organization's strengths, weaknesses, opportunities, and threats
• Technological changes can bring both opportunities and threats for businesses
• Productivity


  A measure of how efficiently and effectively products and services are produced
• Productivity


  Doing things right (efficiency) and doing the right things to meet customer requirements (effectiveness)
• High productivity can be a significant source of competitive advantage
• Productivity


  The ratio between process output units and process input units
• Productivity measures how well resources are used
• Productivity is important for both businesses and whole countries
• Productivity


  Effective use of resources, usually expressed as the ratio of output to input
• Productivity for nonprofits


  Means they can keep costs down while still doing a lot of good
• Productivity for companies trying to make a profit


  Shows how well they can compete with other businesses
• Productivity


  About getting more done with the resources you have, whether that's time, money, or people
• Productivity measures are used to assess how well an entire industry or a whole country is performing
• Business leaders pay close attention to productivity because it affects competitiveness
• Forecasting


  The process of making predictions of the future based on past and present data
• Forecasting within operations management impacts all other operations decisions
• Forecasts drive strategic operations decisions such as choice of competitive priorities, and large technology purchases
• Different departments lie on the predictions of forecasting
• Principles of forecasting

  • Forecasts are rarely perfect
  • Forecasts are more accurate for grouped data than for individual items
  • Forecasts are more accurate for shorter than longer time periods
• Qualitative forecasting methods


  Judgmental methods, generated subjectively, rely on educated guesses and characterized by human judgment and opinions
• Quantitative forecasting methods

  Mathematical modeling, based on mathematics
• Executive opinion forecasting

  Managers collaboratively develop a forecast, often used for strategic planning or adjusting for unusual events
• Market research forecasting

  Uses surveys and interviews to gauge customer preferences and generate new product ideas, often conducted by external firms
• Delphi method forecasting

  Aims to achieve consensus among experts while keeping their identities anonymous
• Time series models


  Assume information needed to generate a forecast is contained in a time series of data
• Naive method


  Assumes that the next period's forecast is equal to the current period's actual values
• Simple mean or average method


  The forecast is made by computing the average of all data
• Moving average method


  Only the data from the most recent periods are included in the average, as new data is added, the oldest data points are removed
• Causal models


  Explore cause and effect relationships, assume the variable being forecast is influenced by other variables
• LEGO bricks empower individuals to explore endless creative possibilities by assembling various pieces
• System design in operations management

  Strategically combining resources and processes to achieve exceptional outcomes in delivering products and services
• System design requires meticulous planning and innovation to integrate different elements effectively
• System design demands continuous improvement and adaptation, companies must undergo multiple iterations, learning from trial and error