up dated by Dr. Hegazy Elgazar Review class Process Book 24/05/2008 up dated by Dr. Hegazy Elgazar

Smith Wholefoods case study Please read the case study and answer the following questions. Smith Wholefoods case study 24/05/2008 up dated by Dr. Hegazy Elgazar

up dated by Dr. Hegazy Elgazar Chapter 1 Q1 : Think about this organization as an open system, and Identify the main activities it performs. List the main inputs and the main outputs of the operations. The company as an open system have direct interact with the environment. Open system have 3 major characteristics: Receive input from environment Convert input to output Discharge their outputs into their environment. Environment Input Output Conversion Material Ideas Staff Finance (budget) Location Manufacturing packaging Marketing Planning Production Bakery Service Breads Crispy potato Cakes 24/05/2008 up dated by Dr. Hegazy Elgazar

up dated by Dr. Hegazy Elgazar 2- Choose one area from the primary activities of Smith Wholefoods and apply it to the Porter’s value chain? Answer Select primary activity (e.g sales & marketing) Fig 5.3 p 57 (Process Book) 24/05/2008 up dated by Dr. Hegazy Elgazar

up dated by Dr. Hegazy Elgazar Q3: Kats & Khan sets 5 sub-systems at work. Identify them according to the case. Production sub-system: concern with bread and potato production (manufacture, customer service, products, …) Supportive sub-system: These are the systems which obtain the inputs and dispose of the outputs of the production sub-system. They also concern with relationship between the organization and external environment. ( café, bakery). Maintenance sub-system: concern with relatively stability of the organization (Management rules and reward the staff). Adaptive sub-system: concern with what the organization might become. How the manufacture is working and deliver services and product in unique way. ( more branches ) Managerial sub-system: controlling, coordinating, planning, and taking decision. Ch 1 p 11 (Process Book) 24/05/2008 up dated by Dr. Hegazy Elgazar

up dated by Dr. Hegazy Elgazar Q4. From your experience and readings, Do you consider HR department as an open or close system? Explain Identify system, open and close system, try to differentiate between them. Identify HR department duties in general Explain why you consider HR department as an open system by mention the characteristics of the open system and mention examples according to HR duties. Draw a diagram same as fig 1.2 p 6 See your book Ch.1 p. 5 & 6 24/05/2008 up dated by Dr. Hegazy Elgazar

up dated by Dr. Hegazy Elgazar Q5. Identify the common characteristics for any organization according to classical / rational school ? Katz & Khan , support each point with examples. See your book Ch. 1 p. 7 (Process Book) 24/05/2008 up dated by Dr. Hegazy Elgazar

up dated by Dr. Hegazy Elgazar Chapter 2 Q 1: What is the dominant transformed resources-materials, information or customers? List all the information resources The transformation process in operations is closely connected with the nature of its transformed input resources. Transformation mean using resources to change the state or condition. Material Process: Wholefoods using raw materials to develop their products (breads, cakes, potato crisp) Information Process: Wholefoods using customer’s ideas and suggestions to design new products. Customers Process: more branches in the village, and improve the product quality. Ch 2 p 20-21 (Process Book) 24/05/2008 up dated by Dr. Hegazy Elgazar

up dated by Dr. Hegazy Elgazar Q2: “ All parts of the organization are operations” Explain this statement through examples. Identify operation in the organization, the major and support function Explain how the organization departments & management are working effectively to reach the goal. Examples by using table 2.1 p 16 Ch. 2 P. 15 to 17 (Process Book) 24/05/2008 up dated by Dr. Hegazy Elgazar

up dated by Dr. Hegazy Elgazar Chapter 4 Q1: what the advice you might suggests to Mr. smith to shift into capabilities based competitors, and identify the 4 basic principles of capabilities based competitors to clarify the idea. - To be a competitor we need to focus on some effective points ( 5 dimensions) speed, consistency, acuity, agility & innovativeness. I identify the 4 steps that transferee the company into capabilities-based competitor: Shift the strategic framework to achieve aggressive goals Organise around the chosen capability and make sure employees have the necessary skills and resources to achieve it. Make progress visible and bring measurements and reward into alignment. Do not delegate (give) the leadership of the transformation. More clarification by mention the 4 principles : The building blocks of corporate strategy are not products and markets but business processes. Competitive success depends on transforming a company’s key processes into strategic capabilities that consistently provide superior value to the customer. Companies create these capabilities by making strategic investments in a support infrastructure that links together and go above traditional strategic business units (SBUs) and functions. Because capabilities necessarily cross functions, the champion (winner) of a capabilities-based strategy is the chief executive officer (CEO). Ch. 4 p. 42 - 47. (Process Book) 24/05/2008 up dated by Dr. Hegazy Elgazar

up dated by Dr. Hegazy Elgazar Q2. As employee in a Successful organization, what the advice you might suggests to the CEO to shift into capabilities based competitors, and identify the 4 basic principles of capabilities based competitors to clarify the idea. Same as last question Q3- “Smith Wholefoods is not a capability based competitor” Discuss this statement with reference to the case study material and B200 material. 24/05/2008 up dated by Dr. Hegazy Elgazar

up dated by Dr. Hegazy Elgazar Chapter 5 Q1: Identify Porter value chain and choose one area from the primary activities of Smith Wholefoods and apply it to the Porter’s value chain. Value chain definition: is a sequence of activities that found to be common to a wide range of firms. Select primary activity (e.g sales & marketing): The primary value chain activities are: Inbound Logistics: the receiving and warehousing of raw materials, and their distribution to manufacturing as they are required. Operations: the processes of transforming inputs into finished products and services. Outbound Logistics: the warehousing and distribution of finished goods. Marketing & Sales: the identification of customer needs and the generation of sales. Service: the support of customers after the products and services are sold to them. Ch 5 p 51 – 56 & Fig 5.3 p 57 (Process Book) 24/05/2008 up dated by Dr. Hegazy Elgazar

up dated by Dr. Hegazy Elgazar Q2 Competitive scope can have a powerful effect on competitive advantage. What are the major dimensions of scope that affect the value chain? Explain the 4 scopes with examples: Competitive scope can have a powerful effect on competitive advantage, because it shapes the configuration and economies of the value chain. There are four dimensions of scope that affect the value chain: Segment scope: The product varieties produced and buyers served Vertical scope: the extent to which activities are performed in house instead of by independent firms Geographic scope: the range of regions, countries or groups of countries in which a firm competes with a coordinated strategy Industry scope: The range of related industries in which the firm competes with a coordinated strategy See your book – Ch. 5 p. 62 – 64 (Process Book) 24/05/2008 up dated by Dr. Hegazy Elgazar

up dated by Dr. Hegazy Elgazar Q3 Identify the value activities which play important role distinct activities that depend on the particular industry and firm strategy? Identify value chain (We explained it before) Identify value chain activities: The primary value chain activities are: Inbound Logistics: the receiving and warehousing of raw materials, and their distribution to manufacturing as they are required. Operations: the processes of transforming inputs into finished products and services. Outbound Logistics: the warehousing and distribution of finished goods. Marketing & Sales: the identification of customer needs and the generation of sales. Service: the support of customers after the products and services are sold to them. Use the diagram p 52 Support each part of answer with example from your organization . See your book Ch. 5 P. 51, 52, 53, 54, 55, & 56 24/05/2008 up dated by Dr. Hegazy Elgazar

up dated by Dr. Hegazy Elgazar Chapter 6 Q1: There are five alternative concepts under which organisations conduct their marketing activities. List these five concepts, with a brief description of each. Identify marketing: We define marketing as “a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.” Marketing is not selling but it is satisfying customer needs. Five alternative concepts under which organizations can conduct their marketing activities: The production concept: customers will favor products that are affordable and that management should focus on improving production and distribution efficiency. The production concept is useful in two situations: When demand exceeds supply, When cost is too high and improved productivity is required to bring it down. 24/05/2008 up dated by Dr. Hegazy Elgazar

up dated by Dr. Hegazy Elgazar The product concept: customers will favor products that offer the most quality, performance and innovation, and organizations should make continuous product improvement. The product concept can lead to “marketing myopia”. 3. The selling concept: consumers will not buy enough of the organization's products unless it undertakes a large scale effort in selling and promotion. A selling oriented organization thus focuses on short term results. 4. The marketing concept: achieving organizational goals depends on determining needs and wants of target markets, and in delivering desired satisfaction more effectively and efficiently than competitors. Under the marketing concept, organizations produce what consumers want, thereby satisfying consumers and making profit. Sales come from new and repeat customers. Customer retention is achieved by customer satisfaction. Marketers must balance creating more value for customers against making profits for the organization. 5. The societal marketing concept: the organization should determine the needs, wants and interests of their target markets and deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the customer’s and the society well being (example is Johnson and Johnson, page 81 of the reader). Ch 6 p. 77 – 82 24/05/2008 up dated by Dr. Hegazy Elgazar

up dated by Dr. Hegazy Elgazar Q2- Using materials from B200 processes and giving examples, discuss the main factors for the core concepts of Marketing. The goal of marketing system: Maximize consumption Maximize consumer satisfaction Maximize choice Maximize life quality For details: Chapter 6 p. 82 - 84 24/05/2008 up dated by Dr. Hegazy Elgazar

up dated by Dr. Hegazy Elgazar Chapter 10 Q1: What are the means to control the manufacturing system? and What are the five inter-related stages of manufacturing system design? Manufacturing systems must be adaptive to survive through the control system which consider to be a dynamic process to ensure efficiently meet the system objective. Manufacturing system at all levels has to see controller function, information flow system, computers, …. There are two areas of control which have to integrate in practice: Process control – Production control. The 5 stages are: Subsystem input-output analysis working backwards from the product requirements. Steady-state design using specifications from stage 1. Dynamic design. Specification of data-collection system required. Control system design. Now Go through example 4 on page 141 of the Ch 10 p 141 – 144 24/05/2008 up dated by Dr. Hegazy Elgazar

up dated by Dr. Hegazy Elgazar Q2: What are the five inter-related stages of manufacturing system design? Q3- What are the means to control the manufacturing system? Same as last question 24/05/2008 up dated by Dr. Hegazy Elgazar

up dated by Dr. Hegazy Elgazar Chapter 11 Q1: Effective logistics management can provide a major source of competitive advantage. Explain. Identify logistics, productivity advantage, value advantage, supply chain management. Definition: Logistics is the process of strategically managing the obtain, movement and storage of materials, parts and finished inventory (and the related information flows) through the organization and its marketing channels in such a way that current and future profitability are maximized through the cost-effective fulfillment of orders. Effective Logistics management can provide a major source of competitive advantage. In other words a position of superiority over competitors in terms of customer preference may be achieved through logistics. 24/05/2008 up dated by Dr. Hegazy Elgazar

up dated by Dr. Hegazy Elgazar Productivity Advantage or Value Advantage: The ability of the organization to differentiate itself, to the customer from its competition. By operating at a lower cost and therefore at greater profit. Successful companies either have a productivity advantage or they have a "value" advantage or a combination of two. The productivity advantage gives a lower cost profile, and the value advantage gives the product a differential "plus" over competitive offerings. The Experience Curve: In many industries there will be typically one competitor who will be the low cost producer and more often then not that competitor will have the greatest sales volume in that sector. There is substantial evidence to suggest that big is beautiful when it comes to cost advantage. This is partly due to economies of scale which enable fixed costs to be spread over a greater volume, but also due to the impact of the "Experience Curve". Ch 11 p.150 – 153 Fig 11.3 24/05/2008 up dated by Dr. Hegazy Elgazar

up dated by Dr. Hegazy Elgazar Logistics and competitive advantage matrix In practice, successful companies will often seek to achieve a position based upon both productivity advantage and value advantage. A useful way of examining the available options is to present them as a matrix (See page 153 of the Processes book and See figure 11.3). 24/05/2008 up dated by Dr. Hegazy Elgazar

up dated by Dr. Hegazy Elgazar The Supply Chain and Competitive Performance : “The supply chain is the network of organizations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate consumer.” Thus for example a shirt manufacture is a part of a supply chain that extends upstream through the weavers of fabrics to the manufacturers of fibers, and downstream through distributors and retailers to the final consumer. Page 157, Processes book. 24/05/2008 up dated by Dr. Hegazy Elgazar

Q2: “Gaining competitive advantages through logistic” Explain ? “Competitive advantage cannot be understood by looking at a firm as a whole. It stems from the many discrete activities a firm performs in designing, producing, marketing, delivering, and supporting its product.” Each of these activities can contribute to a firm's relative cost position and create a basis for differentiation; the value chain disaggregates a firm in to its strategically relevant activities in order to understand the behavior of costs and the existing and potential sources of differentiation. A firm gains competitive advantage by performing these strategically important activities more cheaply or better than its competitors.” In brief: To gain competitive advantages we need to go back to the value chain, and focus on both primary and support activities. Through organization performance of activities more efficiently and in a unique way this will promote value to the customers. Logistic management can assist the organization to achieve both value / product advantages. Fig 11.6 p 155 So the way we serve customers has become a vital means of differentiation Pages 154 and 155 of Processes Book Go to figure 11.4 Marketing logistics’ strategic goal. Go to figure 11.5 The value chain. Go to figure 11.6 Gaining competitive advantage through logistics Ch 11 p 153 – 155 24/05/2008 up dated by Dr. Hegazy Elgazar

up dated by Dr. Hegazy Elgazar Chapter 12 Q1: Discuss why an organisation might choose to recall its products and how this recall take place. Give examples from the B200 Processes module. Or Q2: Discuss why an organisation might choose to recall its products and how this recall take place. Give examples from the B200 Processes module. Identify reverse logistic Classes of recall Steps of recalling Mention examples Ch 12 P 171 Fig 12.1 24/05/2008 up dated by Dr. Hegazy Elgazar

up dated by Dr. Hegazy Elgazar Q3: Draw a reverse distribution model? The success of a firms' recall will to a large extent be contingent upon prior planning and the clear assignment of responsibilities. The concern of logistics managers must be to determine in advance what, if any, modifications are needed in the existing distribution system to handle recalls. Management of the logistics aspects of the reverse distribution system should be assigned to a senior coordinator. Logisticians must be able to determine at short notice the number of effective products anywhere in the distribution system, be they in company warehouse or public warehouses. Good communications and order processing systems will allow the logisticians to substantially reduce the time and manpower required for a recall and limit geographical area of involvement. Transportation and traffic management reviewed with special emphasis on pinpointing shipping dates, orders, destinations, vehicle identifications ,and stoppage of further movement. An accounting and cost review of expenditures for the performance of activities involved in recall must be made. The figure is the most important, Ch 12 p 171 fig 12.1 24/05/2008 up dated by Dr. Hegazy Elgazar

up dated by Dr. Hegazy Elgazar Chapter 14 Q1: Define (OMC – Order Management Cycle) and how can be applied to the case study Identify OMC, explain each order with example. It can be apply through Improve product Pricing Café Working hours Distribution Management & staff Ch14 p. 188 – 190 24/05/2008 up dated by Dr. Hegazy Elgazar

General question for the process book “For their success, processes should be systems focused”. Discuss this statement using materials and examples from the B200 Processes module. Define process, system, competitive advantage, transformation process, OMC, logistic management, …….and any related topic. Ch 1, 2, 11, 14, …. 24/05/2008 up dated by Dr. Hegazy Elgazar