MGT3059 Week 1 Discussion

Decision Making

As with any other managers in an organization, operations managers must make decisions on behalf of the

organization.  While there are many aspects to such decision making processes, it is often valuable to have

structured tools that can assist in framing the decision and comparing the alternatives.   Two such structured tools

are decision tables and decision tools.

A decision table is a tabular means of analyzing decision alternatives and the factors that impact the decision.  For

example, the location decision analyzed in an earlier supplemental media resource utilized a weighting scheme in

order to rank different locations for a restaurant.  The weights included factors such as the cotenants in the same

location, the traf�c in the area, etc.  Thus, such a tabular form of analysis allows decision alternatives, which are

often treated as columns in the table, to be compared systematically.

A decision tree is a graphical means of presenting the decision alternatives, including probabilities that certain outcomes will occur and monetary values associated with those outcomes.  Decision makers will make decisions

that are believed to generate the greatest value for the organization.  Due to the fact that the outcomes are often

probabilistic (meaning that none of them are certain to occur), the decision maker is faced with uncertainty in

what the outcome will be.  However, if the probabilities are accepted as the “most likely” distribution of outcomes,

then the decision tree can be used to identify the decision that provides the organization with the highest

expected value. 

Not all decisions can be made by using decision tables and decision trees exclusively.  For many organizations, the knowledge and intuition of those working in the industry may be valuable and may not be easily factored into

such structured approaches.  However, when analysis can be conducted, these structured tools can assist in the

creation of a more objective analysis of the decision under consideration.

SUO Discussion Rubric (80 Points) – Version 1.2 Course: MGT3059-Operations Management SU01

Response No Submission 0 points

Emerging (F-D: 1-27) 27 points

Satisfactory (C: 28-31) 31 points

Proficient (B: 32-35) 35 points

Exemplary (A: 36-40) 40 points

Criterion Score

Quality of Initial

Posting

/ 40No initial posting exists to evaluate.

The information provided

is inaccurate, not focused

on the assignment’s topic,

and/or does not answer

the question(s) fully.

Response demonstrates

incomplete understanding

of the topic and/or

inadequate preparation.

The information provided

is accurate, giving a basic

understanding of the

topic(s) covered. A basic

understanding is when

you are able to describe

the terms and concepts

covered. Despite this

basic understanding,

initial posting may not

include complete

development of all

aspects of the

assignment.

The information provided

is accurate, displaying a

good understanding of

the topic(s) covered. A

good understanding is

when you are able to

explain the terms and

topics covered. Initial

posting demonstrates

sincere reflection and

addresses most aspects

of the assignment,

although all concepts may

not be fully developed.

The information provided

is accurate, providing an

in-depth, well thought-

out understanding of the

topic(s) covered. An in-

depth understanding

provides an analysis of

the information,

synthesizing what is

learned from the

course/assigned readings.

Participation No Submission 0 points

Emerging (F-D: 1-13) 13 points

Satisfactory (C: 14-16) 16 points

Proficient (B: 17-18) 18 points

Exemplary (A: 19-20) 20 points

Criterion Score

Participation in

Discussion

/ 20No responses to other classmates were posted

in this discussion forum.

May include one or more

of the following:

*Comments to only one

other student's post.

*Comments are not

substantive, such as just

one line or saying, “Good

job” or “I agree.

*Comments are off topic.

Comments to two or

more classmates’ initial

posts but only on one day

of the week. Comments

are substantive, meaning

they reflect and expand

on what the other

student wrote.

Comments to two or

more classmates’ initial

posts on more than one

day. Comments are

substantive, meaning they

reflect and expand on

what the other student

wrote.

Comments to two or

more classmates’ initial

posts and to the

instructor's comment (if

applicable) on two or

more days. Responses

demonstrate an analysis

of peers’ comments,

building on previous

posts. Comments extend

and deepen meaningful

conversation and may

include a follow-up

question.

Total / 80

Overall Score

Writing No Submission 0 points

Emerging (F-D: 1-13) 13 points

Satisfaction (C: 14-16) 16 points

Proficient (B: 17-18) 18 points

Exemplary (A: 19-20) 20 points

Criterion ScoreWriting No Submission 0 points

Emerging (F-D: 1-13) 13 points

Satisfaction (C: 14-16) 16 points

Proficient (B: 17-18) 18 points

Exemplary (A: 19-20) 20 points

Criterion Score

Writing Mechanics

(Spelling, Grammar,

Citation Style) and

Information Literacy

/ 20No postings for which to evaluate language and

grammar exist.

Numerous issues in any

of the following:

grammar, mechanics,

spelling, use of slang, and

incomplete or missing

citations and references.

If required for the

assignment, did not use

course, text, and/or

outside readings (where

relevant) to support work.

Some spelling,

grammatical, and/or

structural errors are

present. Some errors in

formatting citations and

references are present. If

required for the

assignment, utilizes

sources to support work

for initial post but not

comments to other

students. Sources include

course/text readings but

outside sources (when

relevant) include non-

academic/authoritative,

such as Wikis and .com

resources.

Minor errors in grammar,

mechanics, or spelling in

the initial posting are

present. Minor errors in

formatting citations and

references may exist. If

required for the

assignment, utilizes

sources to support work

for both the initial post

and some of the

comments to other

students. Sources include

course and text readings

as well as outside sources

(when relevant) that are

academic and

authoritative (e.g., journal

articles, other text books,

.gov Web sites,

professional organization

Web sites, cases, statutes,

or administrative rules).

Minor to no errors exist

in grammar, mechanics, or

spelling in both the initial

post and comments to

others. Formatting of

citations and references is

correct. If required for the

assignment, utilizes

sources to support work

for both the initial post

and the comments to

other students. Sources

include course and text

readings as well as

outside sources (when

relevant) that are

academic and

authoritative (e.g., journal

articles, other text books,

.gov Web sites,

professional organization

Web sites, cases, statutes,

or administrative rules).

No Submission 0 points minimum

There was no

submission for this

assignment.

Emerging (F to D Range) 1 point minimum

Satisfactory progress has not been met

on the competencies for this

assignment.

Satisfactory (C Range) 56 points minimum

Satisfactory progress has been achieved

on the competencies for this assignment.

Proficient (B Range) 64 points minimum

Proficiency has been achieved on

the competencies for this

assignment.

Exemplary (A Range) 72 points minimum

The competencies for this

assignment have been

mastered.

Operations Strategy

An operations strategy should describe how an organization plans to reach its goal, which always involves

creating value for its customers.  An operations strategy needs to focus on how to use the resources available to

the organization to meet the overall objectives of the organization.

Many organizations state their purpose or overall goal in their mission statements.  For example, the mission statement of Starbucks is “To inspire and nurture the human spirit – one person, one cup and one neighborhood at

a time.”  Thus, the operations strategy will ensure that all resources are used in order to help achieve this goal. 

Whether pouring a cup of coffee or participating in community engagement, every action of the company is

targeted toward this objective. 

When developing an operations strategy, an organization needs to determine its position in the marketplace. This

is done through strengths, weaknesses, opportunities, and threats (SWOT) analysis.

A SWOT analysis helps a manager determine the organization’s position within the current business environment.

The strengths and weaknesses focus on the organization itself (meaning that they are internal to the

organization), while the opportunities and threats evaluate the environment (meaning that they are external to

the organization).

SWOT analysis is not only useful for OM, but is useful for the business in its entirety.  However, decisions that are

made in the OM area should be consistent with decisions that are being made for the organization as a whole. 

Thus, operations strategy should dovetail with the organization’s strategy. 

Since SWOT analysis is such a large part of developing an operations strategy, it should be noted that strengths

and opportunities are helpful in achieving the organization’s goals.  Similarly, weaknesses and threats make

achievement of those goals more dif�cult. 

Competitive Advantage

After an organization has a good understanding of its position in the marketplace and available opportunities, the

organization can develop the overall organization strategy.

An organization can choose to create a competitive advantage through differentiation, cost, or response. Think

of an organization that uses each of these strategies and you will probably come up with some of the leaders in that industry. For example, Nordstrom has utilized a differentiation strategy in department stores. Nordstrom is

known for a high level of customer service, and customers expect more when shopping there. Walmart is known

for its everyday low prices and cost advantages. McDonald's is known for competing on cost. Amazon has built a

reputation on its response to changes in the marketplace. Through its innovative technology, Amazon can update

its website and information offered to each customer based on previous purchases.

Depending on the overall strategy, there are six speci�c strategies that an operations manager can utilize.  These are: 

Flexibility in design and volume

Low cost

Delivery

Quality

After-sales service

Broad product line

An operations manager must consider all aspects of OM when determining the strategy appropriate for meeting

the overall organization goals. Each aspect will have an impact on the costs of the operations functions. However,

in some cases, customers are willing to pay extra for the products based on a strategy. For example, a high-quality

product with after-sale support may be more worthwhile to a customer to have the peace of mind such a

purchase ensures.

Part of achieving a competitive advantage is designing a process that will deliver a product or service in which people are interested.  When considering process design, it is useful to think of your product or service has being

largely standardized (little variety, as with adhesive bandages) or more easily customizable (lots of variety, as with

how you order a Subway sandwich).  Similarly, it is also helpful to think of the product as being one that is

produced in large numbers (like a Snickers candy bar) or in small batches (as with the production of wedding

cakes).  The Supplemental Media entitled “Process Design Dimensions” goes into greater depth with these two

dimensions of process design. 

Additional Materials

Process Design Dimensions

(media/week1/SUO_MGT3059%20W1%20L3%20Process%20Design%20Dimensions.pdf?

_&d2lSessionVal=SWzqLkE3HvLXZkZ375Dqp03nU&ou=86458)

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Process Design Dimensions Standard vs. Customized, High Volume vs. Low Volume

When considering process design, the following graphic is very useful. Based on the variety of products offered and the expected volume, this graphic can assist an operations manager in determining an appropriate strategy.

For example, McDonald’s has a repetitive focus strategy for preparing foods in each restaurant. Typically, a customer does not ask for special requests at McDonald’s. Burger King, on the other hand, has tried to differentiate itself from McDonald’s with the slogan “Have it your way.” Burger King encourages customers to request what toppings they want on their hamburger. This has led to a repetitive focus that leans more toward mass customization.

Think about where a barber shop would fall in this graphic. Can you determine which operations strategy is being pursued by your local hair stylist? Think about where toilet paper would fall in this graphic. Can you determine which operations strategy is being pursued in the production of Charmin, Northern, etc.? © 2017 South University