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BUAD446 Exam 1
Operation Strategy and Supply Chain
Term | Definition |
---|---|
Operation Management | The systematic design, direction, & control of processes that transform inputs into services & products for internal & external customers |
Process | Any activity or group of activities that takes one or more inputs, transforms them, and provides one or more outputs for its customers |
Operation | A group of resources performing all or part of one or more processes |
Supply Chain | An interrelated series of processes within across firms that produces a services or products to the satisfaction of customers |
Supply Chain Management | Synchronization of a firm's processes with those of its suppliers & customers to match the flow of materials, services, & information with customer demand |
External Customers | A customer who is either an end user or an intermediary buying the firm's finished services or products |
Internal Customers | One or more employees or processes that rely on inputs from other employes or processes in order to perform work |
External Suppliers | The business or individuals who provide the resources, services, products, & materials for the firm's short a& long-term needs |
Internal Suppliers | The employee or processes that supply important information or materials to a firm's processes |
Nested Process | Concept of a process within a process |
Core Process | A set of activities that delivers value to external customers |
Supplier Relationship Process | A process that selects the suppliers of services, materials, & information & facilitates the timely & efficient flow of these items into the firm |
New Services/Product Development Process | A process that designs & develops new services or products from inputs received from external customer specifications or from the market through customer relationship process |
Order Fulfillment Process | A process that includes the activities required to produce & deliver the services or product to the external customer |
Customer Relationship Process | A process that identifies, attracts, & builds relationships with external customers, & facilitates the placement of orders by customers |
Support Process | A process that provides vital resources & inputs to the core processes & therefore is essential to the the management of the business |
Operation Strategy | The means by which operations implements the firm's corporate strategy & helps to build a customer driven firm |
Developing a corporate strategy involve what four considerations? | 1.monitoring & adjusting to changes in the business environment 2.identifying & developing the firm's core competencies 3.developing the firm's core processes 4.developing the firm's global strategies |
Core Competencies | The unique resources & strengths that an organization's management considers when formulating strategy |
What are the four core competencies? | 1.Workforce 2.Facilities 3.Market & Financial Know-How 4.Systems & Technology |
Lead Time | The elapsed time between the receipt of a customer order & filling it |
Competitive Priorities | The critical dimensions that a process or supply chain must possess to satisfy its internal or external customers, both now & in the future |
Competitive Capabilities | The cost, quality, time, & flexibility dimensions that a process or supply chain actually possesses and is able to deliver |
Time-based Competition | A strategy that focuses on the competitive priorities of delivery speed & development speed |
Order Winner | A criterion customers use to differentiate the services or products of one firm from those of another |
Order Qualifier | Minimal level required from a set of criteria for a firm to do business in a particular market segment |
What are the 4 core process? | 1.customer relationship 2.new service/product development 3.order fulfillment 4.supplier relationship |
Capacity | maximum rate of output of a process or a system |
Utilization | -how much of the capacity is used -measured as the ratio of average output rate to maximum capacity (expressed as a %) |
Economies of Scale | the average unit cost of a service or good can be reduced by increasing its output rate |
Diseconomies of Scale | occurs when the average cost per unit increases as the facility's size increases |
Capacity Cushion | The amount of reserve capacity a process uses to handle sudden increases in demand or temporary loses of production capacity |
Capacity Requirement | What a process's capacity should be for some future time period to meet the demand of customers |
Capacity Gap | positive or negative difference between projected demand and current capacity |
Base Case | The act of doing nothing & losing orders from any demand that exceeds current capacity or incur costs because capacity is too large |
Quasi Manufacturing | running a service project like a manufacturing business |
Volume Flexibility | the ability to increase or decrease the level of a product or service |
Bottleneck | a resource whose capacity is inadequate to meet demand requirements |