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Competitive Priorities

The document discusses competitive priorities for companies, originally proposed by Hayes and Wheelwright as quality, lead time, cost and flexibility. It notes that others have since expanded on this list, such as adding service and manufacturing technology. It then provides examples of how the original four competitive priorities could be defined or measured in more detail, such as dimensions of quality like performance, reliability, conformance, etc. or dimensions of time like manufacturing lead time, delivery lead time and frequency of delivery.

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J Christopher Xavier
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92 views

Competitive Priorities

The document discusses competitive priorities for companies, originally proposed by Hayes and Wheelwright as quality, lead time, cost and flexibility. It notes that others have since expanded on this list, such as adding service and manufacturing technology. It then provides examples of how the original four competitive priorities could be defined or measured in more detail, such as dimensions of quality like performance, reliability, conformance, etc. or dimensions of time like manufacturing lead time, delivery lead time and frequency of delivery.

Uploaded by

J Christopher Xavier
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Competitive Priorities

In 1984 Hayes and Wheelwright suggested that companies compete in the marketplace by virtue of one or more of the following competitive priorities:

Quality Lead-time Cost Flexibility

Many authors and practitioners have added to and adapted this list over the years. Foo and Friedman (1992) for example proposed a set of six competitive priorities, adding `Service' and `Manufacturing Technology' to the above while expanding `Time' into:

`time to market' and `lead times'.

Others have added


`Innovation', `Dependability' etc.

Quality, time, cost and flexibility can be defined in various different ways to include, for example:

Dimensions of quality:

Performance - the primary operating characteristics. Features - optional extras (the "bells" and "whistles"). Reliability - likelihood of breakdown. Conformance - conformance to specification. Technical durability - length of time before the product becomes obsolete. Serviceability - ease of service Aesthetics - look, smell, feel, taste. Perceived quality - reputation. Value for money.

Dimensions of time:

Manufacturing lead time. Due date performance. Rate of product introduction. Delivery lead time. Frequency of delivery.

Dimensions of price and cost:


Manufacturing cost. Value added. Selling price. Running cost - cost of keeping the product running. Service cost - cost of servicing the product. Profit.

Dimensions of flexibility

Material quality - ability to cope with incoming materials of varying quality. Output quality - ability to satisfy demand for products of varying quality. New product - ability to cope with the introduction of new products. Modification - ability to modify existing products. Deliverability - ability to change delivery schedules. Volume - ability to accept varying demand volumes. Product mix - ability to cope with changes in the product mix. Resource mix - ability to cope with changes in the resource mix.

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