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This course is “Operations Management For Competitive Advantage”. Please answer the following questions and strictly follow the requirements of “Guidelines for weekly Journals” in the PDF file.

Be sure to read the documents in PDF 1 and PDF 2 before answering

200-250 words for each question

The most important grading requirement is: 10 pts

Easy to read entries reflect readings or research done well, are comprehensive, use personal examples and references when used, and relate directly to questions.

Week 10: The next competitive advantage


Please read the “1” pdf and answer the following questions


?
CSR and competitive advantages

Please research the following questions and provide evidence to support your answers. (PDF 1 page 15)

1. Explain the poverty tax. Do we have it in the U.S.? How can we get rid of it with the lessons we learned in OM?

2. What are the operational challenges for companies like Warby Parker and Toms Shoes in their charity efforts? How would you identify the needs then deliver products to meet these needs?

3. Do you have an idea of doing good while doing well? How can you make it feasible?





Reference video given by professor

Warby Parker co-founders on their business vision


https://www.youtube.com/watch?v=0NtYLUh7svg

Algramo

https://www.youtube.com/watch?v=d00CrSr2NcY

Carbon Neutral FlockDirect

https://www.youtube.com/watch?v=mEn9yUrLIWY

Please answer by reading the course description and zip file

? Inventyory

The culminating assessment is your instrument for gathering evidence that students have achieved the course purpose… It should be culminating in the sense that it provides an opportunity for students to ?put it all together.? Ideally, it should reflect an authentic practice of the discipline.*

4. What is your culminating experience for this course? Did you learn something new? And useful? And how would this course help you in your future endeavors?

Please answer based on the zip file and the following course description


Introduction of this course:

Course description

This course focuses on managing the activities involved directly in the creation of products and services such as design, production, and distribution of goods and services from raw materials, suppliers, plants, and retail channels to returns processing and customer service. It provides managers with the skills and tools to analyze, optimize, and improve production processes for competitive advantage. Key topics include value creation, product and service design, manufacturing processes, quality management, capacity planning, inventories, order fulfillment, reverse logistics, sustainability, and corporate social responsibility.

Operations management oversees the entire range of activities for efficient and effective delivery of an organization?s products or services to its customers. It uses resources available to managers to build an integrative process to unite all the people, money, materials, information, and technology involved. It also looks for ethical and innovative ways to solve problems firms encounter in the making goods or rendering services. Through an introduction to the history of production and service management, this course exposes the students to a business environment where all the operational functions are geared toward achieving excellence, adding value, and satisfying customers. Theories, concepts and applications of operations management are introduced to help understand some of the complicated issues faced by today’s managers. Real-life cases and exercises are used to engage the students in active learning and to give them a realistic, hands-on experience.

Course/Learning objectives

? Understand the analytical tools and the main concepts of operations management?including fundamental theories, performance measures, production processes, quality management, resource management?and how they can be applied in general management in an ethical, socially responsible, and environmentally sustainable manner to improve the productivity of an enterprise. (Evidence: Present and explain key concepts effectively with tools and examples.)

? Apply the main principles of operations management to improve strategic actions to achieve competitive advantages and meet the organization?s triple bottom line objectives (environmental, social, and economic sustainability). (Evidence: Document and analyze a case study, complete a project applying lessons learned, or participate in a meaningful professional discourse.)

Corporate Social Responsibility
CSR is a management concept that many companies
adopt to integrate social and environmental concerns
in their business operations and interactions with
their stakeholders.

Corporate Social Responsibility
Many companies practice a multifaceted version of
CSR that ranges from pure philanthropy to
environmental sustainability to the active pursuit of
shared value (creating economic value in ways that
also create value for society). Their activities include:
? Focusing on philanthropy and giving back to non-

profits and community organizations
? Reducing resource use, waste, or emissions to

lower costs and improve operational effectiveness
? Developing or redesigning new products and

services that benefit the society.
? Transforming existing or creating new business

processes and models using CSR principles

CSR Examples
? Reducing the supply chain impact on carbon footprint
? Reducing resource consumption in factory and office
? Conducting business (e.g. meeting, travel) in an environmentally

responsible manner
? Eco-designing products that use recycled or repurposed materials

and can be decomposed or disassembled in the end of the useful
product life

? Establishing an ethics charter against corruption and having a good
governance system

? Developing an ethical supply chain to fight against child labor or
unfair wages in every supply chain partner

? Integrating inclusion and diversity in HR
? Establishing prevention/health and well-being programs at work in

the company
? Raising consumer awareness about responsible consumption
? Allowing/encouraging employees to share their knowledge, skills,

and time for non-profit and community organizations
? Supporting and participating in humanitarian programs

Social Enterprises
Social enterprises are organizations that address a
basic unmet need or solve a social or environmental
problem through a market-driven approach.
? More companies are paying attention to social inequality

and create/join programs that advocate for social justice.
? Many entrepreneurs build companies to promote social

justice.

Social
Enterprises

? A new breed of
companies were
created with
social justice in
mind.

? Many existing
companies have
joined forces to
fight inequality
in society.

Certified B Corporations

Certified B Corporations
are a new kind of business
that balances purpose and
profit. They are legally
required to consider the
impact of their decisions
on their workers,
customers, suppliers,
community, and the
environment.

Warby Parker

A Social Entrepreneur saw opportunities to cut the
middleman in prescription eyeglasses then passed
the benefits to those in need.

Warby Parker?s New Supply Chain

Poverty Tax

Poverty Tax or Ghetto Tax: poor people pay higher
prices per unit because they buy small packages in
neighborhoods that lack competition. They also pay
more for financial services, appliances, and groceries.

http://sdg.shanda960.com/article/5705

Algramo?s Streamlined Supply Chain

TOMS Shoes

Toms’ business model is
known as the “one for one
concept” model, which is
referring to the company’s
promise to deliver a pair of
free shoes to a child in
need for every sale of their
retail product.

Starbucks
Buys
Fairtrade
Coffee

Starbucks is committed to buying 100%
ethically sourced coffee. They share
research and resources through their
Farmer Support Centers located in coffee-
producing countries around the world to
improve productivity and sustainability.

IKEA Builds Better Shelter

Spotify

Neil Young urges Spotify
workers to quit their jobs
before the company ‘eats
up your soul,’ and says CEO
Daniel Ek ‘is your big
problem ? not Joe Rogan.’

Discussion Questions

Please research the following questions and
provide evidence to support your answers.
Everyone: Explain the poverty tax. Do we have it in the
U.S.? How can we get rid of it with the lessons we
learned in OM?
Everyone: What are the operational challenges for
companies like Warby Parker and Toms Shoes in their
charity efforts? How would you identify the needs then
deliver products to meet these needs?
Everyone: Do you have an idea of doing good while
doing well? How can you make it feasible?

Group Discussion
Be sure your group is ready to lead and/or
discuss the following question in class, with
research or facts-based evidence.
There are many admirable companies actively
engaged in CSR. Find one good example and
analyze their efforts from an OM perspective.
Discuss how their work can be replicated by other
businesses. Be sure to cover as many areas as we
have discussed in the course.

Finally?
We have come a long way to this point!
And we have learned a thing or two about
operations management:
? Basic tools in the toolbox:
? How value is created in the circular economy:
? Design of products and services:
? How things are made:
? What is quality and how to manage it:
? Managing the supply side, capacity/inventory:
? CSR and sustainability:
? Anything else:

Competitive Priorities

? Speed/Lead Time
Ex: I have the fastest delivery time

? Flexibility
Ex: I let you customize colors, sizes,
functions, quantities, deliveries

? Quality
Ex: I have the freshest ingredients

? Costs
Ex: I have the lowest prices

Customers choose your products/services because of
one (or more) of these reasons:

And Values Are Important!

Management
According to

Drucker
? The primary goal of a

manager is ?make
people productive.?

? Managers should,
above all else, be
leaders.

? Effective leadership is
not about making
speeches or being liked;
leadership is defined by
results not attributes.

?Organize resources in preparation of future
challenges.

?”Effective leadership is putting first things
first. Effective management is discipline,
carrying it out.? Stephen R. Covey, author of
?The 7 Habits of Highly Effective People?

??They never have enough time for us to do it
right, but they always find the time for us to
do it over.?

?If it?s worth doing it, it?s worth doing it right
the first time!

Productivity and Effectiveness

Some Advice

West Point: ?Yes, sir.? ?No, sir.? ?No
excuse, sir.?

?A? managers hire ?A? employees;
?B? managers hire ?C? employees.

The best way to breed faster
rabbits is to introduce a fox.

Go west, young man!

Read the Practice of Management
every few years!

Don?t Be a
Paycheck Player!

From the movie Jerry Maguire:
All right, I?ll tell you why you don?t
have your ten million dollars. Right
now, you are a paycheck player. You
play with your head, not your heart.
In your personal life, heart. But when
you get on the field it?s all about
what you didn?t get. Who?s to blame.
Who under-threw the pass. Who?s
got the contract you don?t. Who?s
not giving you your love. You know
what, that is not what inspires
people. That is not what inspires
people! Shut up! Play the game, play
it from your heart.

Discussion Questions
The culminating assessment is your instrument for
gathering evidence that students have achieved
the course purpose… It should be culminating in
the sense that it provides an opportunity for
students to ?put it all together.? Ideally, it should
reflect an authentic practice of the discipline.*
Everyone: What is your culminating experience for
this course? Did you learn something new? And
useful? And how would this course help you in
your future endeavors?

* Center for Teaching and Learning, BYU.

courseware collection/1G OM Intro Line of Visibility (2).pdf

Operations Management
We?use?resources?efficiently?by?designing?and?

managing?processes?to?provide?quality?goods?and?
services?to?customers?for?our?long-term?success.

Operations Management
We?use?resources efficiently by?designing?and?managing?
processes to?provide?quality goods?and?services?to?
customers?for?our?long-term?success.

?Resources:
?Efficiency:
?Processes:
?Quality:
?Good?and?Services:
?Long-term:

Visible vs. Invisible
Operations?management?is?often?invisible?and?
unappreciated.?There?is?usually?a?BIG?problem?
when?it?s?visible!?
During?World?War?II,?US?naval?submarines?
accounted?for?2%?of?total?fleet,?but?sank?50%?
of?enemy?ships!

What you see vs. What you don?t see
What?you?don?t?see?is?oftentimes?more?important?
than?you?do?see.

Line of Visibility
In?service,?the?customer?is?usually?involved?in?service?
production.?The?provider?does?something?while?the?
customer?does?something?else?in?a?service?setting.??
The?guiding?principles?for?service?delivery?are:

? Hide?what?providers?do.?(line?of?
interaction,?line?of?visibility)
? Make?customers?do?more?at?no?cost.
? Make?customers?do?more?voluntarily?and?
happily?and?enjoy?the?process?at?no?cost!

Restaurant Service

Bank Operations

Express Mail Delivery

Service Blueprint at Blockbuster

Customer
Enters Store

No Video
Found

Customer
Leaves Store

Payment
Transaction
Completed

Customer
Receives
Video

Customer
Selects
Video

Customer
Reviews
Selections

Customer
Receives
Request

Clerk
Receives
Payment

Clerk
Retrieves
Video

Credit
Transaction

Change
Made

Line of Visibility

Returns Video

Returns
Change

Returns
Credit
Card

The Last Blockbuster Store

Exposed Line of Visibility
Some?companies?do?let?customers?see?part?of?their?
operations??Why?

Good OM Examples
If?customer?can?and?are?willing?to?do?it?for?free,?why?
hire?people?to?do?it?

? IKEA?self?service,?self?assembly
? Costco/Walmart?self?check?out
? Please?return?shopping?carts!?(Aldi)
? Where?have?all?the?bag?boys/girls?gone?
? Online?reservations
? Build?A?Bear!

Line of Interaction
(Customer Contact)

Service?delivery?involves?an?interaction?
between?the?provider?and?the?customer?via?
face-to-face,??phone,?e-mail?or?other?means.?
Every?time?a?customer?comes?in?contact?with
the?service?provider?is?a?moment?of?truth.?
The?moment?of?truth?determines?customer?
perception?of?the?service?and?the?many?
moments?of?truth?in?a?service?interaction?will?
together?constitute?the?line?of?interaction.

Discussion Questions
? Why?would?some?organizations?choose?to?expose?

activities?that?are?usually?hidden?behind?the?line?
of?visibility??

? In?your?work,?or?in?a?scenario?you?are?familiar?
with,?describe?the?activities?in?front?of?the?line?of?
visibility?and?those?behind?it.?

? Covid cases are surging.?Describe?the?operations?
involved?in?testing?people.?Draw?a?line?of?visibility?
and?describe?activities?visible?and?invisible.

courseware collection/2G Foundation Management (1).pdf

Management Fundamentals

? Industrial?revolution?and?the?use?of?
machines

? Scientific?Management:?Fred?Taylor?
applying?scientific?principles?to?
management

? Henry?Ford
? The?famous?Hawthorne?study?
? Peter?Drucker
? Michael?Porter

Fred Taylor: Scientific Management
1. Study?the?one?best?way?of?

doing?things?from?the?master.
2. Recruit/select?the?right?

people.
3. Train?them?the?one?best?way.
4. Share?efficiency?gains?

between?management?and?
workers.

There?is?only?one?way?of?doing?
everything.?(e.g. McDonald?s?
story,?Formula?1?pit?stop)

The One Best Way

The One Best Way

Each sport seems to need the right people to master. Some
are more obvious while others are less so (physically).

At Dingtaifung?

One Thing and One Thing Only

Netflix Movie: The Founder

Multimixer Efficient?Processes

Ketchup?Dispenser Standardization

Further Readings on Management
? Please?read/watch?the?Industrial?Revolution?stories?

www.history.com/topics/industrial-revolution/industrial-revolution

? Please?read?history?of?the?organization?of?work:?
www.britannica.com/topic/history-of-work-organization-
648000/State-organized-farming

? Please?read?Henry?Ford:?https://historycooperative.org/fast-
moving-henry-fords-contributions-america/

? Please?read?about?the?Hawthorne?Study:?
https://en.wikipedia.org/wiki/Hawthorne_effect

? Please?read?Drucker?s?main?ideas:?
https://en.wikipedia.org/wiki/Peter_Drucker

? Please?read?Porter?s?main?ideas:?
https://en.wikipedia.org/wiki/Porter%27s_generic_strategies

Industry 4.0

1. 1st?Industrial?revolution:?power?of?steam
2. 2nd IR:?power?of?electricity,?oil?(internal?

combustion?engine)
3. 3rd IR:?power?of?computers
4. 4th IR:?power?of?robots,?artificial?

intelligence,?and?IoT

Broken Window Theory
? Consider?a?building?with?a?few?broken?

windows.?If?the?windows?are?not?repaired,?
the?tendency?is?for?vandals?to?break?a?few?
more?windows.?Eventually,?they?may?even?
break?into?the?building,?and?if?it’s?
unoccupied,?perhaps?become?squatters?or?
light?fires?inside.?

? Police?focus?on?broken?windows?rather?than?
capital?crimes.?An?ounce?of?prevention?goes?a?
long?way.

Broken Window Theory
Fact:
There will never be enough police.

Challenge:
What should the police do to ensure
security?

Solution:
Prevention. Dummies. Fighting crime in one
area with dominant force and high visibility
then move on to another area.

Discussion Questions
Please?answer?the?following?questions:?
Everyone:?Explain?Scientific?Management?with?
3?examples?at?work?or?in?your?personal?life.
Everyone:?How?would?Industry?4.0?change?your?
profession?(or?your?personal?life)??List?and?
explain?3?major?impacts.
Everyone:?How?can?you?apply?the?broken?
window?theory?in?your?work/life?

courseware collection/2G Foundation OM Tools (2).pdf

Personal Productivity: Mise En Place

? Borrowed from French, mise en place literally
means “setting in place.? It?s a (kitchen) method of a
culinary process in which ingredients are prepared
and organized before cooking .

? Dan Charnas, author of ?Work Clean?: It’s not just
about organizing space, it’s actually about how you
relate to space, how you relate to time, how you
relate to motions within that space, how you relate
to managing resources, how you relate to managing
people, how you relate to managing your personal
energies, all of that.

? Is it a productivity booster? How does it relate to
the Japanese lean philosophy?

Mise En Place (Put in Place)

?”Effective leadership is putting first
things first. Effective management is
discipline, carrying it out.? Stephen R.
Covey, author of ?The 7 Habits of Highly
Effective People?

??They never have enough time for us to
do it right, but they always find the time
for us to do it over.?

?If it?s worth doing it, it?s worth doing it
right the first time!

?What else do you know about work

First Things First

? The Pareto Principle is named after Italian economist
and sociologist Vilfredo Pareto who is known for his
theory on mass and elite interaction as well as for his
application of mathematics to economic analysis.

? Pareto observed in Italy an uneven distribution of
wealth among people, that approximately 80% of the
land was owned by 20% of the population.

? Later, when Joseph Juran applied the Pareto Principle
to management, he specified that 80% of
consequences often came from 20% of the causes.
Managers need to pay attention to the 20% causes to
reap the most benefits of their efforts.

Pareto Analysis (80/20 Rule)

A Pareto chart is used to graphically summarize and
display the relative importance of the differences
between groups of data.

Pareto Chart

? Microsoft noted that by fixing the top 20% of the
most-reported bugs, 80% of the related errors and
crashes in a given system would be eliminated.

? In baseball, 15% of all the players produced 85% of
the total wins.

? In healthcare, 80% of healthcare costs are attributed
to 20% of the populace: the chronically ill.

? Adweek found that 70% of in-app purchase revenue
comes from just 10% of players (known as ?whales?),
who also account for 59% of total revenue.

? Most people wear 20% of their clothes 80% of the
time.

Pareto Examples

Pareto Example 1

Pareto Example 2

Fix these!

Pareto Example 3

Fix these!

What is the 2?2 Matrix?

The 2?2 Matrix is a visual tool that managers use
to help them make decisions. It?s a 2?2 matrix
with opposing characteristics on each end of the
spectrum. The manager then sorts their ideas and
insights according to where they fall in the matrix.

This common analytical tool has many variations,
including the Eisenhower Matrix, the BCG Growth
Share Matrix, and the SWOT Matrix that we will
discuss here.

Eisenhower Matrix
The Eisenhower Matrix is named after
Dwight D. Eisenhower, an American
army general and the 34th President of
the United States from 1953 to 1961. Because he
made tough decisions for the many tasks that
needed his attention, he invented this method to
help us prioritize by urgency and importance.
He was famously quoted as saying ?What is
important is seldom urgent and what is urgent is
seldom important.?

11

The Eisenhower Decision Matrix
1. ?Important? and ?Urgent? tasks. Highest priority and

should be your primary focus to complete ASAP.
2. ?Important?, but ?Not Urgent? tasks. Long-term goals

and tasks that are important and should be scheduled
in your calendar after you?ve finished everything from
the ?Do? quadrant.

3. ?Not Important?,
but ?Urgent? tasks.
These tasks are the
ones you can
delegate to others.

4. ?Not Important?
and ?Not Urgent?
tasks. Delete them!

The
Eisenhower

Decision
Matrix

Examples

The BCG Growth Share Matrix
The growth share matrix was created in
1968 by BCG?s founder, Bruce
Henderson. It is a portfolio management
framework that helps companies decide
how to prioritize their different
businesses. Each business is assigned to
one of these four categories,
representing a certain degree of
profitability: question marks, stars, dogs,
and cash cows.

The BCG Matrix

? Low Growth, High Share.
Companies should milk these
?cash cows? for cash to reinvest.
? High Growth, High Share.

Companies should significantly
invest in these ?stars? as they have
high future potential.
? High Growth, Low Share.

Companies should invest in or
discard these ?question marks,?
depending on their chances of
becoming stars.
? Low Share, Low Growth.

Companies should liquidate,
divest, or reposition these ?pets.?

The BCG
Growth
Share
Matrix

SWOT Analysis

SWOT analysis (or SWOT
matrix) is a strategic
planning technique used
to help a person or
organization identify
strengths, weaknesses,
opportunities, and
threats related to
business competition or
project planning. It is
useful in determining
the abilities and
disadvantages of a
business from an
internal and
external
perspective.

SWOT Analysis
Strengths: characteristics of the business or
project that give it an advantage over others.
One should ask if the strengths are sustainable.
Weaknesses: characteristics of the business
that place the business or project at a
disadvantage relative to others. One asks if
they can be improved?
Opportunities: elements in the environment
that the business or project could exploit to
its advantage, now and future.
Threats: elements in the environment that
could cause trouble for the business or
project, real and potential.

Facebook SWOT Analysis

Discussion Questions

Please research and answer the following
questions:
Everyone: Choose one of the 3 Pareto examples
to develop an action plan.

Everyone: New car dealerships usually have
revenues from 4 sources: new car sales, used
car sales, parts and services, and warranties and
financing. Research and analyze it using the
BCG matrix.

courseware collection/2G OM Foundation Science Statistics Economics (1).pdf

Why is Science Important?
? We manage by science

and facts; not by
opinions or emotions.

? Science helps us
analyze and evaluate
complex situations.

? Science helps us
develop possible
solutions.

? We need science ever
more now that we have
BIG data!

Science
? Causal relationships (A causes B to

happen) vs. correlation
? Primary data vs. secondary or

tertiary data
? Can you trust the Internet?

Pseudoscience and urban myths?

Science: Casual Relationship?

? Causal relationships means A causes B to
happen while A correlates with B means
they happen at the same time.

? Prove that milk does a body good.
? Prove that kids who learn to play music

perform better in school.
? Prove that we shouldn?t buy cars made

Friday afternoon (because workers are not
paying attention; they are planning for the
party ahead).

Causation or Correlation?

playing
music

good
SAT/GPA

What we think
happened?

rich
family

playing
music

good
SAT/GPA

What actually
happened?

Science: Data and Source

? Primary data (data you collect for the
purpose of your study) vs. secondary or
tertiary data (data collected by someone
else for other reasons)
? Which data type above is more reliable?
? What are the benefits and costs using primary data vs.

secondary data?

? Can you trust the Internet? Pseudoscience
and urban myths?
? Your examples of the above?

Understanding Science

? What is science? Making assumptions or
hypothesis, carrying out observations and
experiments, drawing conclusions and
generalization.

? Knowing statistics is necessary to learn
about science, and to apply scientific
(management) principles!

Science: Hypothesis Testing
? Parking meter experimentation (are parking

meters accurate in measuring time?) A girl went
shopping with her dad and they dropped a
quarter for 20 minutes of parking in Sacramento.
When they returned after 19 minutes, they
found a parking ticket. How would they prove
that they were not violating the parking
regulations?

? How do you prove prayers work?
? Are happy workers more productive?
? Are there differences between men and women?

Are women genetically disadvantaged for
science and engineering?

? Are Volvos safer than others?

Hypothesis Testing

Statistics
? Statistics is the study of the collection,

analysis, interpretation, presentation, and
organization of data. (If you have forgotten
what you learned, I strongly suggest you go
over this Wikipedia page again:
https://en.wikipedia.org/wiki/Statistics)

? Managers need to know statistics, not
necessarily how to do it but to understand
and reason with data, present arguments with
data, understand material presented in
publications.

Statistical Literacy
Please think about the following questions:
? The meanings of mean, median, standard

deviation, random sample/variable, normal
distribution, t-test, confidence level/interval.

? In math, 3 is always greater than 2.8. Is it also
true in statistics?

? How many college students in the U.S. (out of
20 million) do we need to survey to learn about
their Internet shopping preferences?

? If a professor says to you that students sitting in
the front of the room are better students. How
do you know it?s true?

Normal Distribution
Do you remember this chart?

Foundation: Micro Economics

? Production function: a set of
ingredients/production factors and their
relationships that make things happen

? Economies of scale (quantity/Costco): the more
you buy, the more you save

? Economies of scope (variety and coverage/Direct
TV, Macy?s): candy shop in mall, battery shop

? Utilities: satisfaction or values associated with
product attributes. Types of utilities: place, time,
form, possession, transaction

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