By Donald Waters
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Extra info for 101 Ways to Improve Business Performance
If several computer systems have all the qualifying factors, price and speed might be the order-winning factors that decide which one you buy. Your marketing strategy aims at delivering products that consistently have the qualifying factors, and score well with orderwinning factors. There are two ways of doing this: cost leadership makes comparable products more cheaply; and product differentiation makes products that customers cannot find anywhere else. Lyons Bakeries are cost leaders who make standard cakes so efficiently that their unit costs are low; La Patisserie Française use product differentiation to make different types of cakes with much higher prices.
Typically, 85 per cent of productivity is set by the process which is designed by managers and only 15 per cent is due to the individual workers. In brief Productivity is the most common direct measure of how well you do your operations. 55 101 WAYS TO IMPROVE BUSINESS PERFORMANCE WAY 39 DEFINE PRODUCTIVITY CAREFULLY When you talk about productivity, you have to be careful to explain exactly what you mean. 3. 3 Meal preparation Old system New system Meals prepared a day 12,000 18,000 Number of employees 120 100 Asset value £300,000 £900,000 The operations manager was happy to report that productivity had increased from 100 meals per employee to 180 meals per employee.
In brief There are many benefits of empowerment, which passes responsibility for work to the person actually doing it. WAY 29 FLATTEN YOUR ORGANIZATION Your organization should have the best structure for achieving its goals. This structure shows the internal divisions of the organization, and the relationships between them. The structure is not fixed, but evolves to meet changing conditions. Unfortunately, this generally means a drift towards more complex structures, with more divisions, extra layers of management, longer chains of command, less delegation and more centralization.