Competitive Priorities
In 1984 Hayes and Wheelwright suggested that companies compete
in the marketplace by virtue of one or more of the following
competitive priorities:-
- Quality
- Lead-time
- Cost
- Flexibility
Many authors and practitioners have added to and adapted this
list over the years.
Foo and Friedman (1992) for example proposed a set of six
competitive priorities, adding `Service' and `Manufacturing Technology'
to the above while expanding `Time' into:
- `time to market' and
- `lead times'.
Others have added
- `Innovation',
- `Dependability' etc.
Quality, time, cost and flexibility can be defined in various
different ways to include, for example:
Dimensions of quality:
- Performance - the primary operating characteristics.
- Features - optional extras (the "bells" and "whistles").
- Reliability - likelihood of breakdown.
- Conformance - conformance to specification.
- Technical durability - length of time before the product
becomes obsolete.
- Serviceability - ease of service
- Aesthetics - look, smell, feel, taste. Perceived quality
- reputation.
- Value for money.
Dimensions of time:
- Manufacturing lead time.
- Due date performance.
- Rate of product introduction.
- Delivery lead time. Frequency of delivery.
Dimensions of price and cost: Manufacturing cost.
- Value added.
- Selling price.
- Running cost - cost of keeping the product running.
- Service cost - cost of servicing the product.
- Profit.
Dimensions of flexibility
- Material quality - ability to cope with incoming materials
of varying quality.
- Output quality - ability to satisfy demand for products of
varying quality. New product - ability to cope with the introduction
of new products.
- Modification - ability to modify existing products. Deliverability
- ability to change delivery schedules.
- Volume - ability to accept varying demand volumes.
- Product mix - ability to cope with changes in the product
mix.
- Resource mix - ability to cope with changes in the resource
mix.
References
- Hayes, Robert H., and Wheelwright, Steven C., Restoring Our
Competitive Edge: Competing Through Manufacturing. New York:
John Wiley, 1984.
- Foo, G., Friedman, D.J., 1992, "Variability and Capability:
The Foundation of Competitive Operations Performance", AT&T;
Technical Journal, July/August, pp 2-9.
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