For an organization to prosper in today’s business it must be familiar with the happenings in the world for the purpose of future improvement. This enables the organization to be aware of the developments in the fields of media, technology, economy, and political changes and therefore able to foresee the future threats and opportunities. Through understanding these factors the organization gauges itself with the current performance and plans on how to improve, the strategies to take and the type of market to target, whether local or international. The determinants of the success of an organization are the type of products and services offered and the relationship with the customers and suppliers. Coming up with a good process capability model enables the organizations to compete well in the international market and improve the organization in terms of revenue and future markets.
Process capability
Process capability is the ability of a given organization to meet its objectives, missions and visions in a strategic organized manner in order to communicate the essential information in regard to the organization to improve its performance and help it compete in the market. In addition, the process capability combines the data collected to assist in the processing of the information which helps in utilizing the available technology to create innovations. Therefore, process capability seeks to make use of the available knowledge from the members and other stakeholders in the organization in order to create innovations which improve the business outputs. From the above definition it is clear that process capability is important in an organization in that it helps in improving the performances through development of ne...
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... the organization should be different from the competitors, the organization should set the internal goals to motivate the members, always give a summary of the plans intended to improve the organization, and give the SWOT analysis of the planned project. Therefore, for the process capability to work there must be an agreement between the organization and the customer (Loon, 2007).
References
QualityTrainingPortal. (2011). What is Process Capability? Resource Engineering, Inc.
Retrieved from: http://www.qualitytrainingportal.com/resources/spc/spc_process_capability.htm
Boudreaux, J.C. (2007). Focused Program Competition 97-02: Motor Vehicle Manufacturing
Technology. Retrieved from: http://www.atp.nist.gov/atp/focusprg.htmv
Loon, V. M. (2007). Process Assessment and Improvement: A Practical Guide. Spring science +
Business Media, New York. 2nd ed. p 27
The United States recession (which lead to a world recession), began in 1997 and significantly impacted the United States automobile industry during the recession period. The United States automobile industry is still reeling from the effects of the recession throughout the period of economic recovery that continues today. According to Chu and Su, “In this credit-driven recession, one of the hardest hit sectors was the automotive industry, along with the housing and financial markets. Chrysler and General Motors were pushed into bankruptcy; and 276,000 jobs in the automobile and parts industry were destroyed, a whopping 36 percent of the total employment in the sector”.
The growth of the automobile industry caused an economic revolution across the United States. The beginning of the 20th century, horse-drawn vehicles and the railroads were the dominant sources for transportation of both goods and people.
Business processes perspective is an opportunity for the company to set goals to improve areas of their business which may be not as strong as other areas, such as increasing efficiency on the manufacturing line. It could also be setting goals to launch new products or services quicker than when planned. As stated above, the business processes could progress from the learning and growth perspective (Savkin,
This perspective is concerned with the exploitation of emerging IT capabilities to impact new products and services (business scope), influence the key attributes of strategy (distinctive competencies) and develop new forms of relationships (business governance).
This source of competitive advantage, ‘dynamic capabilities’, accentuates two angles. Initially, (Teece, 2007) it alludes to the moving character of environment; second, it underscores the key part of strategic management in properly adjusting, coordinating, and re-arranging internal and external organizational skills, resources, and utilitarian skills toward evolving environment (Teece, 1977). Just as of late have scientists started to concentrate on the specifics of growing firm-particular capabilities and the way in which skills are restored to react to shifts in the business environment (Simon, H. 2002). The dynamic capabilities approach gives a sound system to incorporate existing applied and exact information, and encourage remedy (Simon, H. 2002).
In relation to this report a businesses capabilities will be referring to the organisations, in this case 3M, ability to use their resources, expertise and capacity to perform core functions (Elgar, 2005, pp. 17-21). (Woods, 2012, pp. 2-5) State that strategy is the long-term direction of an organisation, furthermore strategic capability is the capabilities that contribute to long term survival or competitive advantage (Woods, 2012, pp. 50-52). Competitive advantage is...
Processes provide clarity to think through the recommendation and the process to make coherent decisions. Processes improve our ability to think clearly and a company that adopts a common decision making process improves the outcome and efficiency of decisions made. A process will map out how to plan, frame and resea...
Selecting a business strategy that details valuable resources and distinctive competencies, strategizing all resources and capabilities and ensuring they are all employed and exploited, and building and regenerating valuable resources and distinctive competencies is key. The analysis of resources, capabilities and core competencies describes the external environment which is subject to change quickly. Based off this information a firm has to be prepared and know its internal resources and capabilities and offer a more secure strategy. Furthermore, resources and capabilities are the primary source of profitability. Resources entail intangible, tangible, and human resources. Capabilities describe environment and strategic environment. Core competencies include knowledge and technical capability. In this section we will attempt to describe in detail the three segments which are resources, capabilities, and core competencies.
The capability research of the firm encompasses a broad group of scholarship built on the combined basis of partly overlapping theoretical frameworks. It ranges from the resource- based views and knowledge-based views (Wu, Y., 2011). In the knowledge-based views, viewing knowledge as the core resource of a firm, capabilities are defined as the know-how that enables organizations to perform certain activities (Dosi,
Pitts and Koufopoulos (2012) argue that resources and capability are highly important internal factors that should be taken into account by the organization in order to obtain the successful performance in the long run.
Firstly, there is a need to focus on the company competitive dimensions before embarking on the decisions. In this aspect, the Competitive capabilities are the Cost, Quality, Time, and Flexibility dimensions that a process or value chain actually processes and is able to...
The most important value of BPM is transparency over the business. Transparency means obtaining a deep understanding of how the organization works which enables us to manage the complexity of organization effectively [11]. Business process models enables the process practitioners to achieve this by documenting: control flow (i.e., what we need to do and when), artefacts (i.e., what we need to work on either physical or electronic), and resources (i.e., who does the work either humans
This strategy emphasizes the use of an organization’s resources and capabilities to achieve a core competence that cannot be imitated by competitors. Furthermore, the resource based school argues that if an organization distinctively improves its internal capability; that is being able to have effective inside machinery to deliver products and services to customers, the organization will enjoy a massive advantage in the market. This school also argues that in order to have a competitive advantage, an organization must have resource and capabilities that are sophisticated to those of competitors (QuickMBA, 2010).
In past few years, companies and industries of various sizes have become aware that they need to improve business processes such as product development, order fulfilment, planning, distribution, and customer service. So everybody is now focusing on doing process improvement or redesigning.
It is important for organisations to achieve their goals, as this can assist them to reach a competitive advantage, which is a highly attractive position for a firm to be in.