Competitive Priorities in a Service Organization: WP Tech

This article discusses the competitive priorities in a service organization, WP Tech, and the role of the operations manager in ensuring their achievement. The competitive priorities include cost, quality, flexibility, and speed. WP Tech, an IT service company, provides monthly solutions to WordPress companies and offers customized services.

Operations
Management

Contents
1.Outline the similarities and differences between manufacturing and services in terms of operations
management................................................................................................................................................3
INTRODUCTION...................................................................................................................................3
TASK......................................................................................................................................................4
2. Does your organization emphasize time – based competition? What are the advantages and
disadvantages of time – based completion for your organization?...............................................................6
INTRODUCTION...................................................................................................................................6
TASK......................................................................................................................................................6
3. Identify the competitive priorities (CSFs) in a service organization of your choice. What is the role of
the operations manager in ensuring that these CSFs are achieved in the organization?...............................8
INTRODUCTION...................................................................................................................................8
TASK......................................................................................................................................................8
4. Investigate the types of qualitative forecasting techniques used in your organization. How do senior
managers identify the appropriate forecasting technique to use in different circumstances? Do you think
these techniques are used appropriately in your organization?..................................................................10
INTRODUCTION.................................................................................................................................10
TASK....................................................................................................................................................10
5. What criteria are used for purchasing decisions of key components in the supply chain in your
organization (or one with which you are familiar......................................................................................12
INTRODUCTION.................................................................................................................................12
TASK....................................................................................................................................................12
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................15

1.Outline the similarities and differences between manufacturing and services in
terms of operations management.
INTRODUCTION
The operations management refers to the management of the resources and the methods which
converts the input into output. Operations management is a field of management which includes
the designing, managing and controlling the process for production. Every business whether a
product based or a service based has to manage its operations. For reference purpose this report
has taken an example of a company name, Tesco. Tesco is a British multinational company
which deals in retail business. The company sells groceries and general merchandise. The
founder of the company is Jack Cohen and it was founded in the year 1919 (Krajewski, Ritzman
and Malhotra,2013). Currently the company has a total number of 6800 shops across the world.
Tesco served in the countries like UK, Ireland, India, Malaysia, Thailand, Czech Republic,
Slovakia, Hungary, Poland and so on.
TASK
The service based company which has taken in this question for references is WP Tech Support.
The company is located in Braddan, UK. The company deals in providing IT managed services
to their clients and considers as profit making company.
Manufacturing and services tasks have contrasts, yet in addition similitudes. For instance,
both make statements of purpose and a dream for how the association will be run and seen by
clients. Every supplier or producer needs to lead the market in its particular industry. In any case,
manufacturing and service operations tasks answer various inquiries and detail various
procedures with regards to arranging and dealing with the manner by which an association is run.
Some of the differences between manufacturing operations management and services operations
management are as follows:
Characteristics: Assembling activities produce unmistakable merchandise, which are physical
items that can be held and seen. Assembling can be separated into two branches: process and
discrete assembling. While process makers produce products that regularly utilize a recipe and
fixings, for example, soft drink or pharmaceutical medications, discrete makers produce
merchandise from parts, for example, gadgets, machines and cars. Then again, administration
tasks offer certain immaterial types of assistance that may not be effectively recognizable.
Services tasks can be ordered into numerous businesses, for example, banking, cordiality,
publicizing and consultancy. As in the case with tesco. The company sells tangible merchandise
products to the customers and the WP Tech gives the IT services to their clients which is an
intangible product for their customers as it can’t be touch, feel or see (Reid and Sanders,2015).
Customized V/s standardization: As a rule, makers have a normalized method of delivering
products. Merchandise are delivered as once huge mob in an industrial facility or distribution
center sort condition. One completed item is commonly equivalent to the following.

Administration tasks, on the other hand, have more chances to redo the administrations they
give. For instance, beauticians and hair specialists must redo the styling and medicines to
coordinate the client's hair, state of face and different attributes. Indeed, even in administration
tasks where you get an unmistakable item, the administration you get from laborers may not
generally be the equivalent (Peng and Lai ,2012). The products which are offered by the Tesco
are very much standardized for example fruits, vegetables, vegetable oils, soaps, shampoos and
etc. But the services rendered by the WP tech is very much customized i.e. according to the
requirements of client.
Production Environment: Assembling and administration activities both arrangement the earth
wherein work happens, yet they center on various components. Assembling activities, for
example, think about the manufacturing format. For instance, the assembling format can be
fixed, process-centered or item centered, for example, in a sequential construction system
production line. These issues influence the maker's workforce execution and all out yield.
Administration tasks, on the other hand, plan the earth as indicated by how it influences clients.
For instance, servive tasks are worried about how the climate appears to clients. Measurements
of the administration condition incorporate the format of decorations, course of action of signs
and substantial signals, for example, hues and sounds intended to upgrade the client experience.
As in the case with Tesco, the company needs a physical store or layout at which they can put
their products or run their stores, but this is not the case with WP tech, they don’t need a physical
store they more concern about the presentation which they have to give it to the clients.
Operations management: In a manufacturing domain, tasks supervisors direct the exercises
required to deliver products from crude materials. Issues directors in this condition face
incorporate dealing with the space to store crude materials, the progression of materials through
the assembling procedure, how much item to create and nature of yield. In a help activity, tasks
supervisors plan laborers to deal with client request. They should mentor and train workers to
offer ideal types of assistance to clients. Administration activities that likewise sell physical
products additionally face stock control issues, for example, the amount to stock and when to
arrange. Tesco has to keep an account of the stick which are available to them whereas this may
not be the case with WP tech as they are service providers company which do not have to worry
about their inventories and stock.
There are many similarities between the service and manufacturing based operations
management and they are:
 Both the service and manufacturing companies set their own mission, visions and values
for them. As in the case with Tesco the company has a mission to provide the groceries
and merchandise at a quality and reasonable prices which are comparatively lower than
the other retailers (Subramanian and Ramanathan,2012).

 Both the organization concentrates at cutting cost. The service and manufacturing based
organization have the main purpose and i.e. to cut the cost for the operations as much as
possible and gain the competitive advantage.
 Both takes the help of promotional and advertisement activities are educate their market
about the respective service renders and products offer.
2. Does your organization emphasize time – based competition? What are the
advantages and disadvantages of time – based completion for your organization?
INTRODUCTION
The above question discuss about the time based competition. Time based competition is
a method in which the companies know about the external situation which is prevailing into the
market. According with it, the company sets its speed, and innovation for operations or process
or in its products and gains competitive advantage (Galindo and Batta ,2013). The company
tesco has been taken for reference purpose. The merits and demerits included in this particular
task.
TASK
This concept of time based competition was first found by BCG in the year 1980 in one
perspectives. This concept is still a tenant of businesses for strategies and totally relevant for
today’s speed of change. Time based competition is the augmentation of JIT into each feature of
the item conveyance cycle, from innovative work through showcasing and circulation of the last
item. Indeed, even quality, while still basic to progress, isn't the upper hand it used to be in
numerous enterprises. Manufacturing firms at that point have three key alternatives: look for
concurrence, retreat even with contenders, or assault (legitimately or in a roundabout way). It has
been said that system is and consistently has been a moving objective. For certain organizations
who decide to assault, this objective has moved to speed and time sensitive rivalry.
Time based competition is a wide based serious technique which underlines time as the
central point for accomplishing and keeping up an economical upper hand. It tries to pack the
time required to propose, create, assembling, advertise and convey its items. So as to do this, the
firm should change its present procedures and adjust the choice structures used to configuration,
create and convey to the client.
The method shows up in two distinct structures: quick to market and quick to deliver. Firms that
contend with to-advertise speed accentuate decreases in configuration lead-time. As such, the
firm can limit the time it takes to grow new items or make quick structure changes. Items 50%
over financial plan however presented on time have been found to create higher benefit levels
than items brought to showcase inside spending plan yet a half year late (Thomé, Scavarda and
Scavarda, 2016). Additionally, this structure permits firms to increase a market edge by having

the option to reliably present all the more new items or huge quantities of item
enhancements/varieties quicker than its rivals, along these lines overwhelming the market.
This method has the following advantages:
Manufacturing: Organizations utilize in the nick of time creation and adaptable processing
plants, prompting less workers being expected to deliver more merchandise in less time, with
lower costs. By diminishing or taking out time delays, it delivers a time sensitive upper hand.
Sales and Distribution: The following stage is to advance deals and conveyance channels to
forestall the loss of whenever based additions from refining the assembling procedure. A case of
this is an organization just transportation what they sell, which means less capacity prerequisites
and less workers being required since there is no stock (Choi ,Wallace and Wang ,2016).
Innovation and product development: Organizations must bring out items quicker than their
rivals with regards to development cycles. At the point when an organization diminishes its new
item improvement and presentation cycle, they increase a prompt preferred position by offering
the item for sale to the public first, assisting with moving the level of influence in an industry
and compelling contenders to respond.
The company, Tesco has adopted this strategy for its operations management. Through
this strategy the company now is able to keep their fair accounts for inventories and able to
manage them very effectively and efficiently. It eliminates any delay in operations and process.
It helps the company in performing all the process at time and in effective way. The company
also brings innovation in its operations like innovation in information management system and
layout management. This method has also helped the Tesco in better sales and distribution of its
products to all its stores or outlets at proper time delivering time and product utility. Time utility
refers to the delivery of products at the right time whereas product utility refers to the availability
for the product at the store.
There are various disadvantages of this method also, and they are as follows:
Costly method: The time based strategy is quite a costly method for an organization. As this
method keep the company up to date about the external market situations or factors which helps
the company in bringing the required change into system and structure. But the constant change
into the system and structure causes cost to the company, as frequent change needs funds or
finances for changes. Therefore this method involves the huge cost to the company.
Frequent changes: Through the adoption of time based competition the organization has to
bring very frequent changes into its operational activities which are very hard and confusing task
for the employees. Frequent changes might bring de- motivation into an employee and it also
confuses and irritates the minds of employees (Hoyos and Akhavan-Tabatabaei,2015). For

establishing the frequent changes the company has to very much updated about external market
and need the required resources to bring up the changes.
Unstable environment: This method brings instability into the operations of the business.
Instability into the organization is not a good thing for an organization as it would not yield
proper profits to the company. Instability also results in increase in turnover ratio into the
employees.
3. Identify the competitive priorities (CSFs) in a service organization of your
choice. What is the role of the operations manager in ensuring that these CSFs are
achieved in the organization?
INTRODUCTION
Every business sets its priorities regarding its business and always tries to stand by upon
these priorities. Similarly there are competitive priorities which every business has to fulfills for
its survival and growth. These priorities are speed, cost, quality and flexibility. For reference this
part has taken an example of a company, WP tech.
TASK
The competitive priorities operationalise the association's competitive methodology. The
two conventional competitive focal points — cost and differentiation — are operationalised as
far as cost, quality, flexibility and speed. By relegating priorities to these measurements, the
association operationalises its procedure. The priorities would then be able to be utilized to
produce gracefully goals identified with quality and development, accessibility and lead-time,
provider administration and responsiveness and cost decrease that are predictable with the
association's competitive technique.
WP tech is an IT service company which provides the monthly solutions to the wordpress
companies. From their services their clients would be up to date with the required change. The
company also renders the company with customized services which uses the word press into
their operations. The company is located in Braddan, UK.
Competing on cost: Associations that contend on cost determinedly seek after the disposal of all
waste. Before, associations in this classification delivered normalized items for enormous
markets. They improved yield by settling the creation procedure, fixing profitability gauges and
putting resources into computerization. Today, the whole cost structure is analyzed for decrease
potential, not simply direct work costs. High-volume creation and computerization might
possibly give the most financially savvy elective (Slack ,2018).
Associations that are cost effectively on cost understand that minimal effort can't be
supported as an upper hand if increments in profitability are gotten exclusively by transient cost
decreases. A drawn out efficiency 'portfolio' is necessitated that exchanges off current

consumptions for future decreases in working expense. The portfolio comprises of interests in
refreshed offices and foundation; gear, projects, and frameworks to smooth out tasks; and
preparing and advancement that improves the aptitudes and capacities of individuals. As in the
case with WP tech the company tries to reduce its cost of operations. They apply many strategies
and methods which enable them in reduction of costs. As they is a service rendering services
they might not need much capital or finances as compared with other manufacturing companies.
The company also does not need to invest much at his inventories and stock as the manufacturing
companies has to do.
Competing on quality: Most associations approach quality in a protective or responsive mode.
Quality is bound to limiting imperfection rates or fitting in with plan particulars. To contend on
quality, associations must view it as a chance to satisfy the client, not only an approach to
maintain a strategic distance from issues or decrease improve costs. To satisfy the client, one
should initially comprehend client mentalities towards and desires for quality. The WP Tech
concentrates more at improving their quality which they render to their clients or to customers
along with the low costs. The main motive of the company is to provide the quality services with
low cost to their customers and clients (Pesci-Anderson and Carignan,2014).
Flexibility: Creation will for the most part oppose this pattern since assortment agitates the
soundness (and productivity) of a creation framework and expands costs. The capacity of
Production to react to variety has opened up another degree of rivalry. Adaptability has become a
serious weapon. It incorporates the capacity to deliver a wide assortment of items, to present new
items and change existing ones rapidly, just as to react to client needs. The company WP Tech
moulds their terms and conditions according to the need to their clients. The company has to
establish flexibility into their work and culture so that the employees exercise some freedom of
work. Flexibility into the operations and process of a company is very much necessary which
WP Tech exercise.
Speed: Like never before previously, speed has gotten a wellspring of upper hand. The web has
molded clients to anticipate quick reaction and fast item shipment. Contending on speed requires
an association described by quick moves, quick adjustments and tight linkages. Dynamic is
pushed down the association as levels of the executives are crumpled and work is acted in cross-
useful groups. Change is grasped and hazard taking supported. Close contact is kept up with the
two providers and clients. Execution measurements reflect time, speed and rate, notwithstanding
cost and benefit. System is time-paced to make an anticipated mood for change. Shaping
partnerships is one of the best roads for contending on speed.
The best model is the material business' speedy reaction (QR) activity, intended to
improve the progression of data, normalize recording frameworks and diminish turnaround time
along the whole gracefully anchor from fiber to materials to clothing to retailing. Car, gadgets
and hardware makers support comparative collusions inside their individual enterprises with an
activity called “Agile manufacturing”. E-commercial centers and company sponsored B2B

locales are drastically accelerating the time required to find providers, arrange contracts and
convey obtainment needs. The company WP Tech maintains the speed in their operations and
work so that their company meets the target with time. Meeting the goal or project at time
portraits many good things about a company that it is very much discipline, hard working,
motivated towards its work.
4. Investigate the types of qualitative forecasting techniques used in your
organization. How do senior managers identify the appropriate forecasting
technique to use in different circumstances? Do you think these techniques are
used appropriately in your organization?
INTRODUCTION
Forecasting is very much necessary for every business without proper forecasting a
business can never be able to plan for its future plans or objectives. There are many forecasting
techniques methods available with a company. Also there are majorly two types of forecasting
techniques and they are qualitative and quantitative technique. Quantitative method is for
forecasting the actual value for a thing, here the result is in some numeric value. Whereas
qualitative method is used for arriving upon a particular judgment. This part would be covering
the qualitative method for forecasting.
TASK
Qualitative methods refer to the usage of such methods which cannot be converted or expressed
in the numerical form. These methods are in the quality and give the results or the value in non
numeric. The qualitative (or judgmental) approach can be helpful in formulating short-term
forecasts and can likewise enhance the projections dependent on the utilization of any of the
quantitative techniques.
There are many kinds of techniques for forecasting which an organization can use. Some of
these techniques are as follows:
Executive opinions: The abstract perspectives on officials or specialists from deals, creation,
money, buying, and organization are arrived at the midpoint of to produce a forecast about future
deals. Typically this technique is utilized related to some quantitative strategy, for example,
pattern extrapolation. The supervisory group adjusts the subsequent forecast, in view of their
desires (Matta and Chahed,2014).
The advantages of this method: The forecasting is done rapidly and effectively, without
need of elaborate measurements. Additionally, the jury of official sentiments might be the main
methods for forecasting attainable without satisfactory information.

The disadvantages of this method: This, be that as it may, is that of mindless obedience.
This is a lot of issues inalienable to the individuals who meet as a gathering. Foremost among
these are high cohesiveness, solid administration, and protection of the gathering. With high
cohesiveness, the gathering turns out to be progressively conforming through gathering pressure
that helps smother disagreement and basic idea. Solid initiative cultivates bunch pressure for
consistent sentiment. Protection of the gathering will in general separate the gathering from
outside assessments, whenever given.
Delphi method: This is a gathering method where a board of specialists is interrogated
separately concerning their impression of future occasions. The specialists don't meet as a
gathering, so as to decrease the likelihood that accord is reached in light of prevailing character
factors. Rather, the estimates and going with contentions are summed up by an outside gathering
and came back to the specialists alongside further inquiries. This proceeds until an agreement is
reached. The Delphi technique was initially imagined during the 1950s by Olaf Helmer and
Norman Dalkey of the Rand Corporation. The name alludes to the Oracle of Delphi, a priestess
at a sanctuary of Apollo in old Greece known for her predictions. The Delphi strategy permits
specialists to move in the direction of a shared understanding by leading a flowing arrangement
of polls and discharging related input to promote the conversation with each resulting round. The
specialists' reactions move as rounds are finished dependent on the data delivered by different
specialists taking an interest in the examination.
Advantages: This sort of technique is valuable and very successful for long-go guaging.
The strategy is finished by poll design and dispenses with the detriments of gathering think.
There is no panel or discussion. The specialists are not affected by peer strain to conjecture a
specific way, as the appropriate response isn't planned to be reached by accord or unanimity.
Disadvantages: Low unwavering quality is refered to as the principle hindrance of the
Delphi technique, just as absence of accord from the profits.
Sales force polling: A few organizations use as an estimate source sales reps who have ceaseless
contacts with clients. They accept that the salesmen who are nearest to a definitive clients may
have critical bits of knowledge in regards to the condition of things to come showcase.
Conjectures dependent on deals power surveying might be found the middle value of to build up
a future estimate (Benzarti, Sahin and Dallery ,2013). Or on the other hand they might be utilized
to alter other quantitative or potentially qualitative conjectures that have been produced inside in
the organization.
Advantages
 It is easy to utilize and comprehend.
 It utilizes the particular information on those nearest to the activity.
 It can put duty regarding achieving the figure in the hands of the individuals who most
influence the real outcomes.

 The data can be separated effectively by an area, item, client, or sales rep.
Disadvantages: salesmen's in effect excessively idealistic or negative with respect to their
forecasts and mistakes because of more extensive financial occasions that are to a great extent
outside their ability to control.
Consumers survey: A few organizations lead their own market overviews with respect to
explicit customer buys. Reviews may comprise of phone contacts, individual meetings, or
surveys as a methods for acquiring information. Broad measurable examination for the most part
is applied to study brings about request to test theories in regards to customer conduct.
The technique which is been followed by the company for forecasting is sales force
method and customer survey. Through sales force method the company detects the products
which consumers prefer the most along with the time and the price at which the customers made
a purchase. By analyzing the sales force method, tesco can determine the types of products are in
demand and according to it, the company would make its future orders for inventories. For
example the company from the sales force techniques had noticed that sunscreens crème are
mostly have huge sales in summers as comparative to winters, then the company would always
plan to have a full stocks for sunscreens at summer time so that the customers and the company
does not face the problem for lack of inventories. Apart from this method, tesco also opt for
customer survey in which it asks the questions to the customers about their taste and preferences
regarding an idea, product or a service. The survey helps the tesco in knowing the taste and
behavior of the customers regarding the same. These two qualitative method for forecasting used
by the managers are totally apt for the company’s operational activity, it forecasts the right
results for the tesco which benefits it.
5. What criteria are used for purchasing decisions of key components in the supply
chain in your organization (or one with which you are familiar)
INTRODUCTION
Supply chain refers to a process through which the suppliers delivers the materials, good
or products to the company and actual customers. Various factors need to be taken under account
before setting up a final chain for supply (Chiarini and Vagnon ,2015). A business undertakes
these factors as they are very much important to consider for an organization. This part includes
the factors which affects or considers for regarding purchasing decisions into the supply chain in
tesco.
TASK
A supply chain is a system between an organization and its providers to create and
appropriate a particular item to the last purchaser. This system incorporates various exercises,
individuals, substances, data, and assets. The supply chain additionally speaks to the means it
takes to get the item or administration from its unique state to the client. Organizations create

supply chains so they can decrease their expenses and stay serious in the business scene. A
supply chain includes a progression of steps required to get an item or administration to the
client. The means incorporate moving and changing crude materials into completed items,
moving those items, and disseminating them to the end-client. The substances associated with
the supply chain incorporate makers, sellers, stockrooms, transportation organizations,
appropriation focuses, and retailers. Buying and acquirement is utilized to mean the capacity of
and the duty regarding securing materials, supplies, and administrations. As of late, the
expression "flexibly chain the board" has progressively come to portray this procedure in
accordance with an expert limit. Representatives who serve in this capacity are known as
purchasers, buying operators, or gracefully administrators. Contingent upon the size of the
association, purchasers may additionally be positioned as senior purchasers or junior purchasers.
The components of a supply chain incorporate all the capacities that start with getting a request
to meeting the client's solicitation. These capacities incorporate item advancement, promoting,
tasks, appropriation systems, account, and client care. Supply chain the executives is a
significant piece of the business procedure (Prashar, 2015). There are a wide range of
connections in this chain require ability and skill. At the point when supply chain the board is
compelling, it can bring down an organization's general expenses and lift productivity. On the off
chance that one connection separates, it can influence the remainder of the chain and can be
exorbitant.
There are few factors which should be taken under account by the company before setting up of
supply chain for the organization. These factors are as follows:
Vendor consolidation: In the event that you work with a chosen few support, fix and
operational (MRO) sellers, at that point you can haggle better costs since you are offering a
higher volume of business. As in the case with Tesco, after collecting the available alternatives
of the suppliers, the company chose a particular supplier which it believes would provide the
products to the company at a reasonable or low prices and also at time. After setting a particular
vendor the company tries to fix that particular for the future orders so that the company again
does not have to go through all the process again.
Product standarisation: Some portion of the thought in picking your progressively smoothed
out seller pool is which providers can give similar items to all the properties in the portfolio. This
will drive down the expense of everything. The vendor chosen by the company should deliver
the standardized products. The product should not get differ in their size, quantity, quality,
features and etc.
Compliance communication: A very much idea out and arranged buying technique possibly
works if all property administrators consent to it and track their consumptions. Furthermore, the
executives needs to suitably speak with the individual property chiefs about the system, the seller
pool, and the buying and announcing instruments. The motive and the path for supply should be

clearly get communicate by the company and the vendor. When the motives and objectives are
clearly convey and communicate between the two parties the chances for the mistakes or any
kind of confusion is very much less for them which ultimate benefits both the parties.
Group purchasing organization: It guarantees that the initial three segments recorded here are
set up. With a GPO, the entirety of the merchant pool is set, the limits have been arranged, and a
buying stage as of now exists.
Efficient path: The path which is been chosen by the company for supply chain should be very
much efficient that it cost low to the company. When the company has low costs, it would have
the ability to save costs for the company.
Competitive advantage: The efficient supply chain of the tesco helps it in achieving the
competitive advantages for the company. Competitive advantage refers differentiating the
company from all the other companies. By adopting the proper supply chain the company can
gain competitive advantages for itself which ultimately would benefits the tesco in achieving its
goals and objectives.
CONCLUSION
From the report discuss above various factors has been discussed. The difference and
similarities between the service and manufacturing operations management has mentioned. The
various factors which a company must taken under account for regarding purchasing decisions
for supply chain has been mentioned. The report also includes the different types of qualitative
method for forecasting, some of them are Delphi method, sales force method, executive
suggestions and customers surveys method. The report also mentioned the competitive priorities
of a company and how they handle it, the competitive priorities are cost, quality, flexibility and
speed.

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