University Operations Management Discussion: Cost Advantage & Lean

This document presents a discussion on key concepts in operations management. It begins by identifying the drivers of competitive advantage, emphasizing cost advantages achieved through process design and supply chain configuration, and differentiation through product features. The discussion then delves into the relationship between capacity management and lean synchronization, highlighting how lean systems contribute to efficient operations by minimizing waste and optimizing production. A table is included to illustrate the benefits of adopting lean synchronization, such as increased product quality, improved lead times, sustainability, employee satisfaction, and increased profits. The document incorporates relevant academic references to support its arguments.

Running head: Operations Management 1
Operations Management
Student’s Name
University
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Operations Management 2
Discussion Question 1:
Identify the drivers behind competitive advantage and discuss how process design and
supply chain configuration can produce cost advantages.
Competitive advantage is an essential element that is required in every organization to
survive in the market. Competitive strategy is an advantage that is generated and motivated
by other factors behind, therefore making more sales due to a large market share. These
drivers are many according to the market environment, but two of them are main. According
to the Algieri, Aquino, and Succurro, (2018) these are:
Cost advantages – The organization uses the drive-through price strategies. The
organization allows charging less price on their product and services compared to its
competitor in the market, thus gaining competitive edges. The drive is motivated by lower
production cost; production volume is high according to the economy of scale, and lower
price in the raw material.
Differentiation – Differentiation is another main drive which deals with product
features which competitor cannot achieve. The mechanism creates product benefits and
advantages in the market. Superior performance and high-quality products benefit the
company and increase its brand and reputation in the market.
Other drivers include:
Resources – Organization composed of highly-skilled workers will have higher
quality product design compared to the competitor. However, this is a result of utilizing
available resources well, including other resources like information, technology, and current
decision-making tools.

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Capabilities – Organization which utilizes its resources to create stronger capabilities
will gain competitive edges compared to others. An illustration is the development of an
efficient supply chain system, which will create more market opportunities to react on.
Cost advantages are achieved through an effective supply chain and process design
configuration system. Smooth flow without barriers creates processes that consume less time
in production, thus saving cost. Increasing supply chain operations in the company will
develop an end-to-end cost process, which is achieved through the networking process.
Conflicting objectives like sourcing, logistics, manufacturing, and sales customer services,
among others, optimize the performance of the supply chain, therefore gaining cost advantage
(Gouda and Saranga, 2018).
Discussion Question 2:
Critically analyze the relationship between capacity management and lean
synchronization. Your answer should include a table of benefits on the adoption of lean
synchronization.
Capacity management and lean synchronization are two essential systems that
contribute to effective supply chain operations within the organization. The two systems are
related directly or indirectly according to the concept of production and supply chain. Using
all set conditions in the organization, capacity management should ensure maximum
utilization of production out-put and potential operations. However, the system is required to
measure the capacity which an organization can achieve, produce, and sell within a scheduled
time (Chen, Guiffrida, and Datta, 2018). Therefore, through a lean synchronization system,
the organization will produce the exact volume through achieving the production floor, which

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lowers the cost of production. Furthermore, the system helps to eliminate necessary waste
resources and make minimal inventory rates (Schniederjans, Schniederjans, and Cao, 2018).
Finally, no effective capacity management without lean synchronization.
The following is the table indicating the benefits of developing and implementing lean
synchronization within the organization.
No. Benefit Explanation
1. Increased product quality The wasted resources are now used innovatively,
therefore improving efficiency and quality. Employees
are currently free.
2. Improved lead time The system produces streamlined manufacturing
processes, which creates time for more and better
improvement. Businesses can respond to another market
variable within a short period.
3. Sustainability The future of the business is stabilized due to less waste
and improved adaptability, which competitive
advantages.
4. Employee satisfaction The lean system enhances not only productivity but also
workers' satisfaction. However, this is recognized
through a daily routine, which affects the more workers.
5. Increased profit High production inline with less waste and high-quality
products attract more profit levels.

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References
Algieri, B., Aquino, A., and Succurro, M., 2018. International competitive advantages in
tourism: an eclectic view. Tourism management perspectives, 25, pp.41-52.
Chen, L., Guiffrida, A.L., and Datta, P., 2018. Capacity-delivery coordination in supply
chains: a cost-based approach. International Journal of Operational Research, 32(3), pp.290-
312.
Gouda, S.K., and Saranga, H., 2018. Sustainable supply chains for supply chain
sustainability: impact of sustainability efforts on supply chain risk. International Journal of
Production Research, 56(17), pp.5820-5835.
Schniederjans, M., Schniederjans, D., and Cao, R.Q., 2018. Topics in lean supply chain
management. World Scientific.