FINALFINALS3 PDF - Competitiveness and Productivity Update

Section Three –Competitiveness and Productivity Update on Team Topics Tuesday, October 1, 2024 14 Topics Approved – Halfway There! With an approved topic, you can now proceed to conduct research. Remember to try to remain focused on your specific topic. Please continue to communicate with the teacher about problems or questions. Team Leader: you might begin to give some thought to creating a presentation. What is Forecasting? This component pertains to the process of relying on historical data, facts, ﬁgures, and sta7s7cs to make decisions for produc7on. Proper forecas7ng is necessary to know how much of a speciﬁc product should be produced. This will allow your facility to only produce what is needed to avoid being stuck with excess inventory or have too many shortages. Loca%on Strategies This component of operations management involves selecting the right location for your organization. A number of factors are involved in selecting the appropriate location. For example, the location of a manufacturing facility may be decided based on the availability and proximity to certain materials or skilled labor resources. Transportation costs might also play an important role. Maintenance This component involves scheduling all of the regular maintenance checks and adjustments for your machines and equipment. Proper machine maintenance creates a safer workplace environment for your employees while reducing the risk of unexpected breakdowns and failures that could halt production. Purchasing This component pertains to ensuring that you have enough raw materials to supply the incoming demands for products. Purchasing can be done using centralized, decentralized, or combined strategies. Centralized purchasing occurs when a single department is in charge of purchasing for the entire organization. Decentralized purchasing occurs when each department or branch is in charge of purchasing to meet their individual needs. Scheduling This component of opera7ons management involves assigning jobs or opera7ons to the right loca7on, machine or labor resource. When an opera7on schedule is done right, it allows your company to decrease your overall produc7on 7me and allow for more items to be produced and shipped out in 7me. Total Quality Management (TQM) TQM is a strategy that is used to create a customer-focused organization and involves improving all employees and activities of the company to meet customer requirements. The focus of total quality management is usually on improving the processes rather than the outcomes and enables the organization to work towards having zero defects. Materials Requirements Planning (MRP) This component ensures that you are receiving the right amount of the right material on time to be able to complete your production on time. MRP involves taking inventory of the items you currently have, identifying which additional materials are required, and scheduling the production of materials or their purchase. Layout of Facili3es This component ensures that the most optimal workflow is used within your production facility. One of the 7 wastes identified in lean manufacturing involves the unnecessary movement of items throughout the facility caused by poor workflow, poor layout, and inconsistent working methods. An optimal facility layout is one that minimizes the motion of items. Number of restaurants in Vietnam that belongs to Domino's Pizza as of March 2023, by city The Master Bánh Mì Kẹp Franchisee Big Bowl for Domino’s Burger King is Vietnam Domino’s Pizza Food & Expresso To Go Beverage Gạo Restaurant Service, a fully Kaisha Sushi owned Next Noodles subsidiary of Popeyes the Imex Pan Saigon Café.Bar.Kitchen Paciﬁc Group Saigon La Poste - Café (IPP Group). Lounge The ﬁrm’s Star Café other brands: Thai Village What is the IMEX Pan Pacific Group? Imex Pan Paciﬁc Group (IPPG) was established in 1985 by Mr. Johnathan Hanh Nguyen. IPP Group (IPPG) is a mul7- industry corpora7on, with businesses in fashion, food & beverage, airport management, travel retail, distribu7on across mul7ple product sectors, investment, technology, out-of-home adver7sing, and much more. Types of Mergers 1. Horizontal mergers occur when companies within the same industry with similar supplier and customer bases combine their opera7ons. 2. Ver3cal mergers take place when companies at diﬀerent stages of the same supply chain, such as suppliers or distributors, merge together. 3. Conglomerate mergers involve the combina7on of companies that operate in completely unrelated businesses. Domino’s Strategies to Boost Sales In the U.S., Domino’s refused to use food delivery companies, until this year. For 2024, Domino’s agreed to a one-year (exclusive) deal with Uber Technologies. Working with Uber made sense given the company’s willingness to share information about customers who ordered on its platforms. And exclusivity comes with better rates. Expanding to other apps will likely mean giving up some of the more favorable terms, but the trade-off is potentially reaching more customers. Logis3cs Logis7cs focuses on planning and execu7ng the delivery of goods or services. It involves managing the transporta7on, storage, and distribu7on of goods from point A to point B. Logis7cs also includes ac7vi7es that support the movement of goods, such as warehousing, packaging, tracking, and customer service. Logis7cs refers to the ac7vi7es needed to deliver a product or service to the customer. In supply chain management, last-mile or last kilometer describe logistical challenges during the last phase of transporting products to their final destinations. Other Changes at Domino’s U.S. Domino’s is pumping up its offerings with a new yearly target for menu additions, setting a goal of adding two new menu items a year. New menu items are expensive. There is extensive testing and even more costly is the operational rollout to ensure that stores have the ingredients and know-how to make a new item. Limited time offers are talked about by a lot of the competition; those are very expensive exercises because of the amount of work that goes into it. OM Components Outsourcing Vs. Domino’s Pizza Offshoring Imex Pan Paciﬁc Group Tolerance Design External Growth Foreign Direct Logis7cs Investment (FDI) Variants Circular Products East Versus West Lego Compe77ve Advantage Generation Z Measuring Proﬁtability The Gig Economy Cost of Goods Sold Opportunity Cost Compara7ve Advantage Core Competencies Presenta?ons Please, no videos, unless you make your own. Presenta(on Content is the most important part of your presentation. Are you “on topic” and is there evidence that you worked hard to reveal interesting and important details. Is there any evidence of teamwork? Is the presentation organized, and can it be easily understood. Did the team make the best use of its twenty minutes? Economies of Scale Economies of scale refer to the cost advantage experienced by a firm when it increases its level of output. The advantage arises due to the inverse relationship between the per-unit fixed cost and the quantity produced. The greater the quantity of output produced, the lower the per-unit fixed cost. In addition, fixed cost gets spread over more output than before. Source CFI What is Franchising? A franchise is a license to use a franchisor’s business knowledge, processes, and trademarks to sell a good or service. The franchisee pays the franchisor a start-up fee and a regular operating fee, often related to the franchisee revenue. Franchising allows a business to quickly expand to new locations and provides an entrepreneur with a packaged entry into owning a business. Guest: Professor Gary Giss of Keuka College Collier & Evans Chapter Six The Chinese Employee Understanding diﬀerences in values across cultures helps explain the behavior of employees from diﬀerent countries. According to Hofstede’s framework for assessing cultures, Asian naEons rank high in long-term orientaEon. They also ranks high in power distance, where the inequality of power and wealth within the country is accepted by ciEzens as part of their cultural heritage. Ranking low in individualism, Asian naEons have a strong collecEvist culture that fosters relaEonships where everyone takes responsibility for group members. Using these and other raEngs can help organizaEons considering doing business in Vietnam and elsewhere to predict the behavior of employees. a Compe33ve Advantage The goal of much of business strategy is to achieve a sustainable competitive advantage. A competitive advantage exists when the firm delivers the same benefits as competitors but at a lower cost (cost advantage) or delivers benefits that exceed those of competing products (differentiation advantage). Competitive advantage creates superior value for its customers and superior profits for itself. Source: Professor Michael Porter Team Presenta7ons Upcoming Team Schedule Teams are formed. Topics are mostly approved. Friday, October 4 – Final Deadline for Obtaining Approved Team Topic Saturday, October 5 – Deadline for Choosing Presentation Date Presentations – October 9 and 10 Teacher will assign topics to teams without approved topics on Saturday, October 5. Team Leader Responsibilities 01 02 03 Coordinate Pay Close Inform Teacher Of Team Member Attention to Noncontribu3ng Ac[vi[es Deadlines Members Maintain Contact With Teacher Choose a Date All Members Must Be Present You Decide Who Will Speak Measuring Profitability Profitability Ratios The proﬁtability ra6os indicate the proﬁt derived from sales. Deduc3ons in Calcula3ng Net Sales Sales discounts are price reductions granted to buyers to encourage early payment. Sales returns are sales deductions due to the return of goods from the buyer. Sales allowances are reductions in the selling price when a buyer agrees to accept a less than satisfactory product. A company with a high gross margin compared to its peers likely has a compe33ve advantage to charge a premium for its products. This could include lower cost or the ability to charge a higher price. Apple’s Gross Margin as Percentage of Revenue As of the ﬁrst quarter of 2024, Apple’s gross margin amounted to around 45.87 percent. Price $1,000.00 COGS 541.30 GP $458.70 Gross Margin $458.70 /$1,000 = 45.87% Markup is 84.74%. Can you calculate it? Common Examples As an investor, you must decide when to sell a stock. Sell it now and you lock in your gains. However, you lose possible future gains. As a student, you must decide on how much effort to make in a course. Working hard, you learn more and obtain a better grade. However, you give up time that could be devoted to other activities and relaxation. As a business, you must make a decision about investing in a new product line. The money you spend will not be available to take advantage of future opportunities. Opportunity cost is what is given up when one choice is selected over another. There’s no such thing as a free lunch. - Milton Freidman (1912-2006) Focus on Core Competencies Some examples: Apple Computer focuses on design, marketing, and product service. An EV manufacturer purchases its batteries, motors, and tires. Your teacher delegates many personal tasks. Leverage the utilization of outside production and services. Business Applica-on: Outsourcing Outsourcing is a business prac[ce in which companies use external providers to carry out business processes that could otherwise be handled internally. Poten[al Beneﬁts of Outsourcing Reduce Labor Costs Access Specialized Services Focus on Core Competencies Complete Short-Term Projects Get Hard-To-Find Skills Drive Business Growth Source: Prialto Oﬀshoring is the reloca7on of a business process from one country to another— such as manufacturing or a suppor7ng service. Can offshoring be accomplished without outsourcing? Reshoring A new “reshoring” trend is set to upend global supply chains as firms look to source products — such as clothes and computer chips — closer to home, turning away from manufacturing powerhouses like China. Top reasons include reducing lead times, rising offshore wages, domestic financial incentives, improved responsiveness & coordination, and lower intellectual property risk. Tolerance Design Tolerance Design For most manufactured goods, design blueprints specify a target dimension (called the nominal), along with a range of permissible varia[on (called the tolerance); for example, 0.500 ± 0.020 cm. Here, the nominal dimension is 0.500 cm but may vary anywhere in the range from 0.480 to 0.520 cm. This is some[mes called the goal-post model. Narrow tolerances improve product func[onality and performance but tend to raise manufacturing costs because they usually require higher precision technology. An exhibit shows the regions of loss and no loss. A line shows markings for 0.480, 0.500, and 0.520. The region before 0.480 and after 0.520 is labeled loss. The region between 0.480 and 0.520 is labeled no loss and tolerance. The Taguchi Quality Loss Func7on points out that in any devia7on from the ideal, some customers will experience some level of dissa7sfac7on and loss. LSL – Lower Specification Limit USL – Upper Specification Limit Early Tolerance Planning By considering tolerances early in the design process, potential issues can be identified and addressed before they become costly problems. This proactive approach can lead to a smoother manufacturing process and a higher-quality end-product. Delaying tolerance decisions can lead to last-minute changes, increased manufacturing costs, and potential product recalls. Early planning ensures that the design is optimized for manufacturing, reducing waste and ensuring product reliability. Mistakes to Avoid Overlooking the impact of the opera&ng environment on materials. Diﬀerent types of materials respond diﬀerently to condi[ons such as hea[ng. For example, metals might expand or contract more than plas[cs under similar circumstances. These factors should be factored in when senng tolerance limits. Neglec[ng geometric tolerances can lead to assembly issues, even if dimensional tolerances are met. For instance, a hole might be the correct size but drilled at the wrong angle, making assembly diﬃcult or impossible. A key misstep when orchestra[ng a mul[-component design, it is impera[ve to gauge how individual tolerances might aggregate. when you assemble parts each with its own tolerance, the collec[ve eﬀects can escalate, introducing no[ceable devia[ons that might hinder the assembly’s performance. Source: ACO Mold International Tolerance Standards Manufacturing in our global era frequently spans con[nents. It’s essen[al to s[ck to interna[onal tolerance standards for consistency and global compa&bility. Adhering to ISO (Interna[onal Organiza[ons for Standardiza[on) and ASME (American Society of Mechanical Engineers) Standards They oﬀer tolerance design blueprints that ensure parts from various corners of the globe mesh together without a hiccup. Ensuring Accurate and Comprehensive Tolerance Records Proper documenta[on ensures that everyone involved in the manufacturing process, from designers to assembly line workers, understands the tolerance requirements. Boeing’s Operational Problems Boeing Outsourcing The development of the 787 Dreamliner was a challenging period for Boeing. The company aimed to develop the aircraft quickly and inexpensively to compete with the Airbus A380. Instead of developing the aircraft in- house and sourcing parts from suppliers, however, Boeing decided to outsource 70% of the design, engineering and manufacturing of entire modules to over 50 strategic partners. These partners, in turn, could outsource various parts to their suppliers. Toyota Development Process This strategy of leveraging suppliers for rapid and frugal product development was an amempt to imitate the Toyota development process. In addi7on to close communica7on and coordina7on with suppliers, Toyota shares informa7on with suppliers and conducts joint improvement ac7vi7es, making these key suppliers an extension of Toyota. Problems, Big Problems The 787 development program turned out to be extremely over budget and late, and production problems led to safety concerns. Boeing continued this outsourcing process with the 737 Max aircraft, and two crashes in 2018 and 2019 were blamed on design and production. One supplier, Spirit AeroSystems has admitted to having drilled holes in fuselages that did not meet Boeing’s specifications Source: Industry Week Foreign Direct Investment A foreign direct investment (FDI) is a substan[al, las[ng investment made by a company or government into a foreign enterprise. FDI investors typically take controlling posi[ons in domes[c ﬁrms or joint ventures and are ac[vely involved in their management. With a horizontal FDI, a company establishes the same type of business opera[on in a foreign country as it operates in its home country. In a ver[cal FDI, a business acquires a complementary business in another country. Vietnam Textile Industry The Vietnam Textile and Apparel Association (VITAS) said that Vietnam was home to around 3,500 foreign- invested textile and garment projects worth $37 billion, boosting the sector’s production capacity and making a significant contribution to export turnover. Major investors mainly come from South Korea, Taiwan, Hong Kong, and China. In 2023, Vietnam’s textile industry posted an export turnover of $40.3 billion. The US is the top export market for Vietnam’s textile and garment products, followed by the EU, South Korea, China, and Japan. Interes?ng Facts The industry currently imports nearly all of its co4on and spends tens of billions of dollars on raw fabric each year. The leading locali9es in FDI a4rac9on in the tex9le and garment sector are Dong Nai, Binh Duong, Tay Ninh, Long An, Nam Dinh, Hai Duong, and Binh Phuoc. Vietnam Na9onal Tex9le and Garment Group (VINATEX) is the leading tex9le company in Vietnam. Circular Products Made with circular materials (Recycled, Upcycled, Rene wable content). Designed to extend the life of the product (Preloved, Refurbished, Repairable, Durability, Reusable, Reﬁllable). Designed to be recycled or composted at the end of their useful life. Source: Wrap Textile and garment industry is currently the industry with the most regulations and standards related to circular economy. The reason is that this industry Tex3les & has large emissions, on average a year there is about 100 million Circular tons of solid waste. from old Economy clothes. Developing a circular economy is considered a key strategy to help Vietnam's textile and garment industry deeply participate in the global value chain. Source: Vietnam.VN Lego Comes to Vietnam Lego kicked oﬀ construc[on of a 44- hectare state-of-the-art factory at the Vietnam-Singapore Industrial Park in the southern province of Binh Duong in November 2022. The investment is the largest by a Danish company in Vietnam to date and part of the company’s strategy to expand its supply chain network to support long-term growth and locate produc[on facili[es close to its major markets. What is Generation Z? Genera2on Z (oSen shortened to Gen Z), also known as Zoomers, is the demographic cohort born between 1997- 2012. How to Attract, Engage, and Retain Gen Z in The Workplace Genera3on Z In The Workplace Generation Z will soon surpass Millennials as the most populous generation on earth, with more than one-third of the world’s population counting themselves as Gen Zers. As Gen Zers are about to step onto the world stage, the impact of their entry will be swift and profound, its effects rippling through the workplace, retail consumption, technology, politics, and culture. Radically different than Millennials, this generation has an entirely unique perspective on careers and how to define success in life and in the workforce. Source: Deloitte Many employers believe that Genera7on Z is the most demanding working genera7on so far. They are career driven, and they expect a lot from their employers. On the other hand, employers are yet to ﬁnd the best ways to amract and keep them in the workplace. Six Traits of Genera?on Z In The Workplace They change jobs frequently. For employers, this means harder employee retention. They prefer diverse workplaces relaUve to race, ethnicity, gender, disability, sexual orientaUon, and religion. They are smartphone lovers. Employers need to offer mobile access to almost everything employees need to do their jobs. Con=nued Next Page Six Traits of Generation Z In The Workplace Workplace tech is important to them. With the emergence of remote work, technology has completely transformed the way we communicate and do our jobs. ConUnuous learning is a must. Many Gen Z employees are ambiUous, career driven, and eager to learn new things. They are stressed out. More than 1 in 3 working Gen Zers ﬁnd it diﬃcult to cope with pressure and stress at work. Source: Haiilo What Can Employers Do? Many employers have started implementing employee well-being programs. 82% of Generation Z employees find it important to have mental health days. Leaders must be transparent, supportive, and listen to what employees have to say. Implement employee surveys to gauge satisfaction. Encourage in-person socialization among colleagues. 73% of Gen Z employees report feeling alone sometimes or always. Do your best to hire without bias and in alignment with the best Diversity & Inclusion practices. Con2nued Next Page What Can Employers Do? (Continued) Ensuring eﬃcient and easy knowledge sharing with the right communica[ons technology is cri[cal for improving your employees’ experience at work. Invest in social intranets to enable employees to communicate the right informa[on to the right employees at the right [me. Make sure you have a structured employee onboarding program with designated onboarding materials, videos, and guides. Con2nued Next Page What Can Employers Do? (Continued) Employers need to provide mobile access to important workplace applica[ons and data. Consider social media recruitment eﬀorts. Almost half of Gen Z employees report they found their current jobs on social media. Don’t limit employee advocacy to social recrui[ng only. Happy Gen Zers can be your best brand ambassadors! Make being a good ci[zen a priority for the company. One of the leading reasons Gen Zers quit their jobs is that the company’s culture doesn’t match their personal values. Source: Haiilo The Modern Social Intranet The intranet is designed to be a hub where coworkers can toss around creative ideas, get advice from colleagues, and form bonds over projects and shared interests. With the space to confidently share, employees are more likely to feel connected to their coworkers, team, and the company. A social intranet should have places for profiles so employees can see at a glance who does what and where they’re doing it. Source: Atlassian In the past, freelancing involved mostly crea[ve work (designers, writers, etc.) and contrac[ng was ouen connected with IT-related posi[ons. Now this phenomenon exists in prac[cally every profession, from university teaching to nursing care. But, where’s the organiza[on in all of this? Gig economy companies are learning to beneﬁt from labor ﬂexibility by hiring independent workers in response to real-[me demand. Gig – a live performance by a musician or other performer. (slang for engagement) Early in the pandemic, a ﬂood of newly unemployed people shiped to high- and low-skill gig work; Pandemic this glut led to a drop in Changed individuals’ hourly pay due to Everything supply severely outstripping demand — for everyone from marketers to Uber drivers. As a result, an unprecedented increase in compe77on has forced many exis7ng and new gig workers — many of whom are young and shut out of the job market — to scramble for their next paycheck. Source: Benjamin Laker, University of Reading Adjunct Teaching Contract Temporary No Beneﬁts “This on-demand, or so-called gig, economy is creating exciting economies and unleashing innovation. But it is also raising hard questions about workplace protections and what a good job will look like in the future.” Hillary Clinton A different technological revolution – The Gig the digital revolution – is partially responsible for the recent return to peer-to-peer exchange. Economy In the gig economy, traditional full- time salaried employment is giving way to temporary, part-time, and independent contracting and freelancing. The advent of the high-tech gig economy means very different things to these two kinds of workers: skilled and unskilled. “The app that oﬀers more advantages will retain users. However, if users only s7ck to an app because of good promo7ons, they will turn away when the promo7ons end,” Jinwoo Song – CEO of Baemin Vietnam told Vietnamnet. According to the survey conducted by Rakuten Insight, approximately 21 percent of the Vietnamese respondents stated that they ordered food from food delivery apps three to six [mes a week. Nine percent of respondents even ordered several [mes a day. The same survey showed that Vietnamese mainly ordered lunch on food delivery apps. Vietnam Food Delivery Service The second quarter of 2023 also saw a surge in demand for online meal orders. As a result, revenue in the online food delivery market is expected to reach approximately US$1.93 billion in 2023. As of 2022, GrabFood emerged as the dominant food delivery service in Vietnam, with a substantial market share of 45 percent. ShopeeFood followed as the second most popular food delivery platform in the country with a market share of 41 percent. However, Baemin has shown significant growth by implementing strong marketing strategies, building an impressive brand identity, and offering attractive promotional programs. Stir-Fried Cabbage, Tofu and Red Pepper Food Delivery in India Rohan Agarwal at Redseer, a management consultancy, estimates that over 40m online food orders worth about $135m were made in India in October 2018 — more than double the figures from a year before. In a country of 1.3bn people, there are only about 100,000 restaurants, according to the National Restaurant Association. In China, Meituan- Dianping boasts 6.5m restaurant listings. Indian users are allowed to pay for their food in cash when it arrives. Also, market research shows that many users were seeking “an authentic home meal replacement”. Source: FT 12/20/18 The Home-Cooked Meal The homemade lunch, delivered to oﬃce workers who can’t go home for their midday meal, has been the standard for 127 years. Known as dabbas, the delivered lunches, made by the family, come in large circular metal Ens. Pickup and delivery is extremely complex, oTen requiring rail for part of the journey. Independent 8/4/17 Vietnam Ride-Hailing According to Statista's data in 2020, the total market share of the three largest enterprises in the market, including Grab, Gojek, and Be Group, has reached nearly 99%. That means the remaining 17 "made in Vietnam" ride-hailing apps share just over 1% of the market share. The biggest problem for Vietnam’s companies is spending on investment. Unlike foreign investors, Vietnamese companies cannot and do not accept that their investment may take up to 10 years to make any profit. Uber is no longer available in Vietnam. It ceased opera7ons in the country in 2018 aper being acquired by Grab, a Southeast Asian ride- hailing company. Grab is now the dominant ride- hailing app in Vietnam, and it oﬀers a variety of services, including car rides, motorbike rides, and food delivery. A Driver’s Story A Didi Chuxing driver in Beijing surnamed Zhang told the Post in June that he had seen orders and income decline for the three months he had been on the platform. "There are just lots of people like me who started driving for Didi after losing jobs in the last two years, making it hard especially for new drivers to get enough orders," said Zhang, in his late 20s. Source: SCMP, August 5, 2023 Australia & Industry Regula3ons Gig economy workers in Australia including ride-share drivers and food delivery riders could soon benefit from minimum pay and protection against “unfair deactivation”. Deactivation is the process of removing a gig economy worker from an app, ending their ability to earn income despite claims workers are “independent” of the platform. Source: The Guardian, August 30, 2023 Nguyễn Khuyến Nguyễn Khuyến was a Vietnamese scholar, poet, and teacher living in the 19th century. He was the ﬁrst Vietnamese poet who put opinions about current ma|ers in classical poems. He was one of the few upper- class poets who wrote favorably about poor farmers. Among his best poems are: "Group of three poems about Autumn: Fishing in Autumn, Drinking in Autumn, Versing on Autumn" which express sadness and loneliness and "Paper Doctor" which ridicules incapable scholars. Fishing in Autumn by Nguyễn Khuyến The fall pond cheerless, the water clear I fish from a small boat drifting here. Tiny blue ripples roll through the mist The wind, the leaves fly past with the year From a deep blue sky hang rows of clouds On a bamboo path, no one appears Knees to chest, I can’t put down this pole, Many fish tug at the duckweed here.

FINALFINALS3 PDF - Competitiveness and Productivity Update

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