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55 Cards in this Set

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what are the 3 primary functions? pg 11
operations, marketing, finance
what are the 4 operations decisions? pg 10
process, quality, capacity, inventory
what are the 6 functions that make up the internal environment of a business operations? pg 14
HR, Engineering, marketing, Accounting, Finance, MIS
define lean pg 15
lean is concerned with eliminating waste (non value adding) activities in every part of the business and improving flow; JIT production; motorola phone
operations strategy is a consistent pattern of _________ for the transformational system and associated _______ _______ that are linked to hte business strategy and other functional strategies, leading to a _________ ______ for the firm. pg 21
decisions, supply chain, competitive advantage
def mission pg 22
look up
in a ________ company, decisions are handled differently in each country around the world pg 24
traditional
in global markets, ________ companies are a c competitive disadvantage pg 24
traditional
what are the 4 elements of the operations and supply chain strategy? pg 22
mission, objectives, decisions (capacity, inventory, quality, process), distinctive competence
name the 2 fundamental supply chain strategies and give brief explanations of each pg 25
imitation: imitators have products similar to those of thier competitors and ar oriented toward efficiency and low cost as a way of competing; innovators: differentiate thier product as their way of competing and can charge higher prices
the objectives of a firm should be long-range oriented (___ - ____ years) to be strategic pg 29
5-10 yearzzz
def benchmarking pg 29
look up
how does wal-mart's "cross docking" process work? pg 31
cross docking is aimed at lowering the prices of shipping; goods from suppliers trucks are transferred across the loading dock to waiting walmart trucks and delivered to the stores without entering the warehouse
T or F: it is cheaper to prevent errors and mistakes than to correct them after they occur pg 32
TRUE
when rework, scrap, inspection, and other non-value-added steps are eliminated from operations, the time to ______, _______, and _______ the product is also reduced pg 32
order, produce deliver - the idea here is to get you to understand wat would need to happen i delivery time was the key objective in an operation
if we reduce ________, flexibility will also improve pg 32
time
flexibility can be achieved directly by
a. adding capacity
b. buying more flexible equipement
c. redisigning product for high variety
d. all the above
pg 32
all the above, duuuhhhh
T or F, quality improvemnet and time reduction are the places to start for operations objectives pg 32
TRUE - every other function stems offf these 2 things, what we do to directly attack these, we do indirectly to things like flexibility and keeping costs low
def order winner pg 34
objective that will win orders from customers in particular segment marketing has selected (price, for example)
def order qualifier pg 34
flexibility, quality, and delivery can be considered order qualifiers in that the compnay must have acceptable levels of the 3 objectives to qualify to get the order;
insufficient levels of performance on order ________ can lose the order, but higher performance on order ________ cannot by themselves winthe order. only the order ______ will win the order (price, cost, etc) pg 34
qualifiers, qualifiers, winner (ex: us bank competes on superior service as the oder winner; however, it must offer competieive interest rates on loans and deposits as an order qualifier)
in the product innovator strategy, the order winner is ________ to introduce superior prducts rapidly and effectively; order qualifiers are ______, ______, and _____ pg 34
flexibility, cost, quality, delivery
sustainability refers to minimizing or eliminating the environmental impact of operations, once the strategy to pursue sustainability is set, it is usually best to start with a few of these initiatives... pg 34
1. eliminate air, water, landfill use
2. reduce energy consumption
3. measure and minimize transportation and total carbon footprint
4. work with suppliers to use recyclable and biodegradable packaging
incorporate product reuse, end of life return, and recycling --- the first step most companies take is to measure thier environmental impact in any or all five of these areas
WHEN A SUPLIER IS CONSIDERED A POTENTIAL COLLABORATION THE FOLLLOWING 4 CRITERIA should be ocnsidered pg 47
techincal expertise, capability, capacity, low risk
what is QFD?
quality function deployment; it is a tool for linking customer requrements as defined by customer to technical specs; facilitates interfunctional cooperation between markeitng, engineeringm and manufacturing; house of quality - customer attributes vs. engineering characteristics
in a "house of quality" matrix, what variables represent the left side, "chimney", "roof", and right side?
left side: customer attributes
chimney: relative importance
roof: engineering characteristics
right side: customer perceptions
roof of quality house shows ...
trade offs betwen one engineering characteristic and another
in the house of quality, target values are located...
on the bottom - ultimate resul of th house is translation of the CA's into target values for ECs on the bottom of the matrix
design for manufacturing is a approach that consists of two things...
1. simplification of products 2. manufacture of multiple products using common parts, processes, and modules
modular design is a prerequisite to _____ __________ pg 54
mass customization
def reverse engineering
Reverse engineering is the process of dismantling a competitor's products to understand the strengths and weaknesses of the designs
def design for manufacturing
Design for manufacturing (DFM) is a set of methodologies that can be used to design process so product fabrication and assembly will have low cost, low assembly time, high labor productivity, low manufacturing cycle time, and high conformance quality.
def QFD (better answer)
Quality Function Deployment (QFD) is a method for ensuring that the customer has a voice in the product specification. QFD uses cross-functional teams to define customer needs and then break these needs down into customer requirements.
what is a prototype and what is it used for in NPD?
In the product development context, a prototype is an example built for evaluation purposes. This is often done to evaluate the market demand for the product. Prototypes can also be used to make sure that the process is capable of meeting the product specifications.
what are the 4 things a firm should consider when picking a process for manufacturing?
1. market conditions
2. capital requirements
3. availability and cost of labor
4. the state of techonolgy for process and product
order these processes from highest to lowest risk (based on the 4 decision criteria for choosing a process): batch, assembly, project
assembly, batch, project
The______ _____ is the best measure for make-to-stock products
fill rate
The X and Y axes for the learning curve are normally:
The X-axis is the cumulative units produced and the Y-axis is the cost per unit. The main idea of the learning curve is that as cumulative production increases, the cost per unit goes down.
def postponement
The postponement principle is the idea of delaying differentiation (customization) for a product as long as possible in order to minimize complexity and inventory. Note that postponement is just one approach to mass customization. Note also that increas ing customization and/or variety is not necessarily postponement.
what is a learning curve
The concept of a learning curve is based on the cumulative production. With an 80% learning curve, every time the cumulative production doubles the cost per unit goes down by 20%. Note that the x-axis here is the cumulative number of units produced
the service-product bundle consists of what 3 elements? pg 86
explicit service (tangible), implicit service (intangible of psychological benefits of the serviec), facilitating goods (physical goods)
def a customer routed service pg 89
customers want a unique, highlyl customized experience (personal trainers, internet shopping, museums)
def co-routed service pg 90
offer moderate number of choseces to customers, using moderately standardized processes; medical (plastic surgery) and stockbroker services, golf course
def provider-routed services pg 90
highly standardized; few options during delivery and matched with customers whose needs are very similar to one another; ATMs, eating at McDonald's, getting a blood test
service process design tends to vary with customer volume, T or F pg 90
F - it doesn't vary with volume
what are the 5 types of customer-introduced variability? (SCARE)
arrival (uncertain when they will arrive), request (uncertainty in what they will ask for), capability (uncertainty in ability of customers to participate), effort ( uncertainty in willingness to perform necessary actions), subjective ( uncertainty in intangibel preferences of cusomters in how service is carried out)
a service guarantee has 2 components, what are they? pg 94
promise of what service will be delieverd and waht the payout will be if promise is not fulfilled; service guarantees also provide motivation for employees of exactly what htey should be doing for cusomters; must be "meaty" - if guarantee is too small, it will not provide adequate incentive for delivering better service; importance of this is that it procedes ao CONCRETE DEFINITION of the level of service that must be provided; as a result, service process can be designed to meet this required target and in the event of failure, service recovery can be defined
what are the 6 steps to service recovery?
The six steps to service recovery are (1) listen, (2) apologize and show empathy, (3) ask the service recovery question “What can we do to completely satisfy you?” (4) fix the problem quickly (prioritize customers and escalate if needed), (5) offer symbol ic atonement (something tangible that the customer will appreciation), (6) follow up to make sure that the relationship is fixed. The slogan here is "It is much easier to keep an existing customer than to find a new one."
what is the main idea of the service-profit chain?
The key idea of the service profit chain is that engaged and satisfied workers will result in satisfied customers, which will in turn lead to customer loyalty, revenue growth, and profitability growth.
what are the 4 types of costs of inventory?
item cost, ordering (setup) cost, carrying cost (or holding), and stockout cost
what are the 3 components of carrying costs? pg 366
cost of capital, cost of storage, costs of obsolescence, deterioration and loss
what is the total cost minimization approach (inventory)?
tie apporoach in inherently cross functional in nature and does what is best for hte entire firm
for independent demand, a ________ philosophy is used - as the stock is used, it is replenished so products are always on hand for customers pg 368
replenishment
for dependent demand, a ________ philosophy is used, where the amount of stock ordered is based on requirements for higher-level items; dependent demand items follow a strict schedule and to not have "replenishment points) pg 368
requirements
the Economic Order Quantity formula is based on 6 assumptions. what are they? pg 369
1. demand rate is constant, recurring, and known
2. lead time is constant and known
3. no stockouts are allowed
4. items or materials are ordered or produced in a lot or a batch
5. unit item cost is constant, not discounts are given for large purchases
6. item is a single item without interactions with other inventory items