Productivity boundary and operating efficiencies, Operation Management

Assignment Help:

Productivity Boundary and Operating Efficiencies

In an alternative approach, Porter (1996) attempts to resolve the issue of trade-offs by introducing the concept of a productivity boundary and operating efficiencies. Porter suggests that the experiences of a firm are determined by its relative position to the productivity frontier shown in this figure. Porter contends that strategic positioning means performing different activities from rivals or performing similar activities in different ways. Whereas operational effectiveness means performing similar activities better than rivals perform them. Porter makes two other observations regarding the productivity frontier. He argues that as companies approach the frontier they are more liable to experience trade-offs: at the frontier only trade-offs. He also contends that the frontier is a moving target which is shifted outwards by new innovations and management approaches. He claims that this model explains the behaviour of Japanese manufacturers in the 1980s. And show that they moved towards the productivity boundary by improving on several fronts at one time: cost, TQM, JIT, increased variety and increased product innovation.

317_Productivity Boundary and Operating Efficiencies.png


Related Discussions:- Productivity boundary and operating efficiencies

Compute the value of the tax shield, You have a lease on an oil and gas pro...

You have a lease on an oil and gas property with 87.5% NRI that delivers your firm annual profits of $400,000 for five years, with equal production in each year (you will need to t

Explain what problems associated with planned change, What problems associa...

What problems associated with planned change should the OD practitioner be aware of? How might such problems be overcome?

Explain control board meeting to approve a scope change, Which of the follo...

Which of the following is normally not addressed in a change control board meeting to approve a scope change? Answer Cost of the change Which functional unit will perform

Explain attempt to change an organizations culture, How would an OD (organi...

How would an OD (organizational practitioner) attempt to change an organizations culture?

Explain a recruitment process, Describe a recruitment process that would pr...

Describe a recruitment process that would provide a pool of pre-qualified candidates for the seven open trainer positions.

Explain advertising budget, The production manager at company XYZ needs to ...

The production manager at company XYZ needs to prepare forecasts of product demand in order to plan for appropriate production quantities. In the past, demand for the product has b

Describe ethical to reduce the number of employees, 1. Based on GM's ...

1. Based on GM's current condition, do you think it is ethical to reduce the number of employees? Why or why not?

Central tendency of sample means, Central Tendency of Sample Means As...

Central Tendency of Sample Means As was shown earlier (Advantages of SPC: feedback, the use of individual output measurements as the basis for process adjustment is inappropr

Explain what is the probability that both are successful, DO NOT WORK A com...

DO NOT WORK A company is considering producing two new electronic games designed for the popular Gameboy toy. Based on market data, management believes there is a 60 percent chance

Explain cause organizations to redesign their products, What are some of th...

What are some of the factors that cause organizations to redesign their products or services?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd