DISCUSSION QUESTIONS

Directions: Please answer question 1 differently than my classmates post and comment on both of my classmates posts since it's a discussion.

We all have to answer the same question and comment on each other post. 

MGMT 651

1) Conduct a literature review for the following items using the textbook, the Internet, a journal article, or other sources. Write a brief description of each and record the source of the information.

• How to build a SIPOC diagram
• How to construct strategy maps
• Dimensions of competitive advantage
• Measuring and tracking productivity

Below are the posts from my classmates. Please respond to their post based on what they wrote. It's a discussion assignment:

Post 1: from Ralph Pollard

How to build a SIPOC diagram.

The supplier, input, process, output, customer (SIPOC) diagram defines the scope of work for a team and identifies at a high level the potential deficiencies between what a process expects from its suppliers and what customers expect from the process.

First, a team must know the beginning and end of the process. Next, the outputs of the process must be defined or “what does the process do?” Then the team must indicate the customers of the process. Next, the suppliers, or those entities that provide inputs into this process must be defined. Then the team must determine what is needed to execute this process and deliver the outputs. Finally, the diagram should indicate the five to seven highest-level steps in the process as they exist today to show how the process operates.

By using a SIPOC diagram, a team is able to better understand how the suppliers, inputs, process steps, and outputs affect customer needs.

How to construct strategy maps.

The strategy map is used to visually display the strategic objectives to assist organizations with the implementation of that strategy.

A strategy map is typically constructed with a set of 15 to 25 causally linked strategic objectives. Each strategic objective will contain the required projects or processes to complete the objective. This also includes the appropriate key performance indicators (KPI) measures and targets, and it will take into account key risk indicators. Selecting and measuring the appropriate KPIs are critical – you get what you measure.

Dimensions of competitive advantage.

According to Dr. Jean-Paul Rodrigue of Hofstra University, there are three major dimensions over which competitive advantages can be challenged. First, added value. A high added value is derived from something that is very difficult to replicate. This implies that a product is systematically offered at a lower cost or is of higher quality than a competing product. Second, the scarcity of a product is often related to the existing market size or to the resources sector. If a market for a good is relatively small and thus scarce, potential competitors may be unwilling to enter this market. Third, the imitation costs of a product or service. A complex product, such as a high tech device, is much more difficult to replicate and often translates to a competitive advantage.

Measuring and tracking productivity.

Operations management is responsible for managing the transformation of numerous inputs into a range of outputs, such as goods or services, but the challenge becomes the efficiency of the process. A measure of how efficiently inputs are converted into outputs is called productivity and measures how well resources are used. In other words, productivity = output/input.

Although an easy calculation of outputs to inputs, the interpretation of productivity is not so simple. Productivity is a relative measure that should be tracked over time. This allows organizations to benchmark internally and externally against competitors and the industry as a whole.

American Society for Quality. (2015). SIPOC Diagram. Retrieved from: http://asq.org/service/body-of-knowledge/tools-sipoc (Links to an external site.)

Cokins, G. (2013, July 22). The balanced scorecard, strategy maps and dashboards: Why are they different? GGMA Magazine. Retrieved from: http://www.cgma.org/magazine/features/pages/20138186.aspx (Links to an external site.)

Rodrigue, J. (2015). Competitive Advantages. Retrieved from: https://people.hofstra.edu/geotrans/eng/ch1en/conc1en/competitiveadvantages.html (Links to an external site.)

Sanders, N. (2014, January 23). Operations Management Defined. Person Education. Retrieved from: http://www.ftpress.com/articles/article.aspx?p=2167438&seqNum=5 (Links to an external site.)

Reply

Post 2: from Jessica Monaco

How to build a SIPOC diagram
A SIPOC diagram is flow chart that models an input-output model between suppliers, process and customers. It is used when certain specifications are unclear and defining them can systematize a complex project. To build this diagram, working backwards will create a better idea. I will use an example of feeding my dog, the customer (I just admitted I work for a dog). Once the customer is identified, make a clear, step-by-step process of the customers’ expectations and needs. Once the process is in production, create the outputs of the process and also the inputs of what is needed for this process to successfully happen. Once all other items of the SIPOC are identified, lastly identify what suppliers are needed to fulfill the entire production.

S- suppliers: PetSmart, Grocery store

I- input: Shop for food; Scrutinize ingredients in dog food; Buy dog food

P- process: Make sure dog bowl is out; Give dog fresh water; Open pantry door; Open dog food container; Scoop 1 cup of dog food; Pour into dog bow; Return scoop to bag

O- output: Nourishment; Good health

C- customer: Vaught, my 1 year old German Shorthaired Pointer

Reference: Simon, K. (2000). SIPOC Diagram. Retrieved August 14, 2015, from http://www.isixsigma.com/tools-templates/sipoc-copis/sipoc-diagram (Links to an external site.)

How to construct strategy maps
Strategy maps are a newer concept used to set clear targets in financial and customer results. Constructing a proper strategy will show critical capabilities or flaws in the business process. According to MK Partners, LLC, there are many different themes a strategy map can depict, however every map has 4 distinct notions. Before building your strategy map, a company will choose what their focus of the strategy map is and then depict the support functions to achieve this goal. For example, my dog food business wants to create a strategy of achieving healthy animals through quality ingredients with an affordable price by redesigning the dog food industry. The below strategy map organizing the main focuses of my business to help create a successful business model.
Financial Results- increased revenue, low operating costs, affordability
Customer results- healthy animals
Business process- Quality ingredients, affordable price
Organizational capabilities- redesign dog food industry
Reference: Strategy Maps: A Primer. (2013). Retrieved August 14, 2015, from http://mcknightkaney.com/Strategy_Maps_Primer.html

Dimensions of competitive advantage
As business professionals, we all know a competitive advantage comes from the right strategy of offensive and defensive business practices. According to the Competitive Advantage model of Porter, there are 2 basic types of competitive advantages and a third competitive strategy. The first type of competitive advantage is cost leadership. Within cost leadership, a firm tries to have the lowest costs in their industry. If all dog foods are selling for the same price, then the firm with the lowest cost will in-line have the best cost/profit ratio and the competitive advantage. The next competitive advantage is differentiation. Being unique in an industry or rare, reduces the market size, driving competition down. Also being different is harder to replicate, making it harder for competitors as well to enter the market. The last competitive advantage and strategy is the focus to be the best in that particular market, whether it is cost or differentiation.
Reference: Competitive Advantage. (2014). Retrieved August 14, 2015, from http://www.valuebasedmanagement.net/methods_porter_competitive_advantage.html (Links to an external site.)

Measuring and tracking productivity
Measuring and tracking productivity is a great operational and employee business practice. The sooner productivity is tracked; the better a firm can notice trends and compare historical data. More than surface level factors should be measured. For example, if it is taking an hour longer than the schedule prohibits for 1 bag of dog food to come off the line, the productivity of the sub factors should begin to be tracked. Are the employees moving at the pace they are required? Are the suppliers meeting their suspense’s when it comes to ingredients and packaging? The measurements should address relationships between inputs and outputs. Tracking is an excellent mechanism for finding your short falls and being able to pin point where an issue is, instead of a quick reaction aiming to fix a more than surface level issue.
Reference: Chew, W. (1988). No-Nonsense Guide to Measuring Productivity. Retrieved August 14, 2015, from https://hbr.org/1988/01/no-nonsense-guide-to-measuring-productivity