ORDER-WINNERS AND QUALIFIERS Adding Value to the Manufacturing Operation.

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Presentation transcript:

ORDER-WINNERS AND QUALIFIERS Adding Value to the Manufacturing Operation

LEARNING OBJECTIVES …to understand what is added value …to understand the difference between order- winning and order-qualifying characteristics …to recognise the characteristics of lean and agile manufacturing

ADDED VALUE MANUFACTURING The ultimate aim with added value manufacturing is to increase in the value of the manufacturing process in the eyes of the customer.

THE TEXTILE SUPPLY CHAIN First tier supplier Second tier supplier SUPPLY SIDE Agent/DCRetailer MARKETING MANUFACTURER Information flow Physical flow (Products and Services) Feedback, Customer Demand etc. Product Availability, Production Requirements, Orders etc.

ORDER-QUALIFIERS An order qualifier is a characteristic that is required for a product or service to be considered by a customer. Firms must provide the qualifiers to get into or stay in a market. To provide qualifiers, they need only to be as good as their competitors. (Hill, 2000)

ORDER-WINNERS An order winner is a characteristic that will win the bid or customer's purchase. To provide order winners, firms must be better than their competitors. (Hill, 2000)

THE ORDER-WINNER AND QUALIFIER MATRIX

CHARACTERISTICS OF SUPPLY Mason-Jones et al. (2000) (COST) (ADDED VALUE)

THE FIVE COMPETITIVE OBJECTIVES COST Lower prices (or higher profits) On-time deliveries QUALITY DEPENDABILITY FLEXIBILITY SPEED Wider variety More customisation More Innovation Cope with volume fluctuations Error-free Products and services Faster customer response

MANUFACTURING REQUIREMETNS COST QUALITY DEPENDABILITY FLEXIBILITY SPEED Minimum cost, maximum value Reliable operation Ability to changeError-free processes Fast throughput