Operations Management Discussion: Takt Time and Competitive Advantage

This discussion board post analyzes the competitive advantage strategy for the Banana Smartwatch, suggesting a differentiation strategy focusing on high-quality products. It explores ways to increase multi-factor productivity, such as adopting innovative production methods and recruiting skilled workers. The post defines takt time, explaining its role in optimizing production to meet customer demand and its historical significance in manufacturing. The author provides references to support the analysis, covering topics like customer-perceived value, strategic mistakes, and value stream mapping. This assignment, available on Desklib, offers insights into key operations management concepts and their practical applications.

Operations Management
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Running head: OPERATIONS MANAGEMENT

OPERATIONS MANAGEMENT
Discussion
5.
a. The suggested competitive advantage strategy for the Banana Smart watch in the market is
differentiation strategy as the company focuses on providing high quality products to their target
customers. The differentiation strategy helps a company to distinguish their product/ service
from other similar form of products that are provided in market by other rivals. The
differentiation strategy encourages a company to develop their product/service so as to offer
uniqueness to customers in context to product design, features, brand image, quality or customer
encounter. The differentiation strategy will enable the company to differentiate the Banana
Smartwatch product from other competitor’s competitive products in the market based on the
quality of the product. The differentiation strategy is the most suitable strategy for Banana Smart
watch company to gain competitive advantage in the market as the company cannot compete
with other competitors based on costs as it is newly established in market. Therefore the
company can compete in market based on quality of the Banana Smart Watch which is superior
than other products in the market, as such the differentiation strategy of the company will help
them to gain competitive advantage in the market.
As stated by Echchakoui (2018, p. 143) in order to adopt differentiation as the competitive
advantage strategy of the organization, Banana Smart watch company needs to research on
particular wants and demands of a specific market segment which has not been fulfilled with the
existing products available in market. Based on the research Banana Smart watch company needs
to design their products which will help in fulfilling the unmet demands of the customers
belonging to the identified segment. As stated by Viltard (2017, p. 484) in order to pursue
differentiation as a competitive advantage strategy, Banana Smart watch company also needs to
ensure that the basis of their competitive strategy is not imitated by other competitive business
organizations as such events will not enable Banana Smart watch to differentiate their product in
the market.
b. The two ways through which multi-factor productivity can be increased in Banana Smart
watch company are as follows:
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OPERATIONS MANAGEMENT
 The first way through which the business of Banana Smart watch company can increase
multi-factor productivity is by adopting innovative methods and techniques in the
production process of the company. This will not only enable Banana Smart watch
company to increase multi-factor productivity of the organization but will also enable the
company to enhance the quality of product which will help in creating increased demand
for the product.
 As stated by Foster (2015, p. 33) another way through which the business of Banana
Smart watch company can increase multi-factor productivity is by recruiting highly
skilled and trained production workers in the company who will not only help in
increasing the multi-factor productivity of the company but will also help in enhancing
the production process of Banana Smart watch company.
c. (i). Takt time is defined as the rate at which a business organization needs to complete the
manufacture of a product in order to satisfy the demands of the customers. For instance, if a
business organization receives an order regarding a new product in 4 hours, therefore in order to
meet the demand of the market, the business organization needs to finish manufacturing the
production in 4 hours or less. Takt time is actually the sell rate of the company and it can be
perceived as heartbeat of the work process of a business organization. Takt time allows a
business organization to optimize their capacity in the most appropriate manner in order to meet
the demands of the business organization without keeping too much inventory in reserve. The
word takt time originates from the German word Takt which means beat or pulse. Takt time was
primarily used as a metric in 1930’s for a German Manufacturing company and after twenty
years it contributed significantly to the rise of Toyota from a small Japanese car maker to the
largest automobile company in the world. Takt time is calculated by dividing total available
production time by average customer demand. As stated by Salunkhe & Shinge (2018, p. 47) takt
time helps in creating a constant pulse across the various business process of an organization
which in turn helps to identify and analyse various issues regarding capacity, regarding
synchronization, regarding quality and different other issues. Takt time helps in ensuring that the
right products are delivered to the customers at the right time and at the right quantity. Takt time
also ensures that all the business capacities are planned and utilized and has the capability of
meeting customer demand.
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OPERATIONS MANAGEMENT
References
Echchakoui, S. (2018). An analytical model that links customer-perceived value and competitive
strategies. Journal of Marketing Analytics, 6(4), 138-149.
doi:http://dx.doi.org/10.1057/s41270-018-0043-9
Foster, J. (2015). The multi-factor productivity growth illusion. The Australian Economic
Review, 48(1), 33. Retrieved from https://search.proquest.com/docview/1660119528?
accountid=30552
Salunkhe, R. T., & Shinge, A. R. (2018). Value stream mapping to reduce lead time and improve
throughput time in a manufacturing organization: A review. IUP Journal of Operations
Management, 17(3), 42-52. Retrieved from
https://search.proquest.com/docview/2105003973?accountid=30552
Viltard, L. A. (2017). Strategic mistakes (Avoidable): The topicality of Michel Porter’s generic
strategies. Independent Journal of Management & Production, 8(2), 474-497.
doi:http://dx.doi.org/10.14807/ijmp.v8i2.580
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