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106 Cards in this Set
- Front
- Back
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Operations Management (OM)
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The science and art of ensuring that goods and services are created and delivered successfully to customers.
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Good
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A physical product that you can see, touch, or possibly consume.
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Durable Good
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A product that typically lasts at least three years.
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Nondurable Good
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A perishable that generally lasts for less than three years.
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Service
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Any primary or complementary activity that does not directly produce a physical product.
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Service Encounter
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An interaction between the customer and the service provider
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Moments of truth
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Any episodes, transactions, or experiences in which a customer comes into contact with any aspect of the delivery system, however remote, and thereby has an opportunity to form an impression.
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Service Management
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Integrates marketing, human resource, and operations functions to plan, create, and deliver goods and services, and their associated services encounters.
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Customer Benefit Package (CBP)
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A clearly defined set of tangible (goods-content) and intangible (service-content) features that the customer recognizes, pays for, uses, or experiences.
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Peripheral Goods or Services
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Those that are not essential to the primary good or service, but enhance it.
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Process
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A sequence of activities that is intended to create a certain result.
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Value Chain
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A network of facilities and processes that describes the flow of good, services, information, and financial transactions from suppliers through the facilities and processes that create goods and services and deliver them to the customer.
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Value
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The perception of the benefits associated with a good, service, or bundle of goods and services in relation to what buyers are willing to pay for them.
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Value Proposition
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A competitively dominant customer experience.
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Supply Chain
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The portion of the value chain that focuses primarily on the physical movement of goods and materials, and supporting flows of information and financial transactions through the supply, production and distribution processes.
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Operational Structure
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A value chain is the configuration of resources such as suppliers, factories, warehouses, distributors, technical support centers, engineering design and sales offices, and communication links.
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Vertical Integration
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refers to the process of acquiring and consolidating elements of a value chain to achieve more control.
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Outsourcing
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The process of having suppliers provide goods and services that were previously provided internally.
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Backward Integration
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Refers to acquiring capabilities at the front-end of the supply chain (for instance suppliers)
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Forward Integration
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Refers to acquiring capabilities toward the back-end of the supply chain (for instance customers)
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Value Chain Integration
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The process of managing information, physical goods, and services to ensure their availability at the right place, at the right time,at the right cost, at the right quantity, and with the highest attention to quality.
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Offshoring
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The building, acquiring, or moving of process capabilities from a domestic location to another country location while maintaining ownership and control.
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Multinational Enterprise
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An organization that sources, markets, and produces its goods and services in several countries to minimize costs, and to maximize profit, customer satisfaction, and social welfare.
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Competitive Advantage
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Denotes a firm's ability to achieve market and financial superiority over its competitors.
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Dissatisfiers
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Requirements that are expected in a good or service.
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Satisfiers
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Requirements that customers say they want.
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Exciters/delighters
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New or innovative good or service features that customers do not expect.
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Order Qualifiers
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Basic customer expectations--dissatisfiers and satisfiers--are generally considered the minimum performance level required to stay in business.
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Order Winners
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Goods and service features and performance characteristics that differentiate one customer benefit package from another, and win the customer's business.
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Search Attributes
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Those that a customer can determine prior to purchasing the goods and/or services.
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Experience Attributes
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Those that can be discerned only after purchase or during consumption or use.
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Credence Attributes
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Any aspects of a good or service that the customer must believe in, but cannot personally evaluate even after purchase and consumption.
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Competitive Priorities
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Represents the strategic emphasis that a firm places on certain performance measures and operational capabilities within a value chain.
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Mass Customization
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Being able to make whatever goods and services the customer wants, at any volume, at any time for anybody, and for a global organization, from any place in the world.
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Innovation
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The discovery and practical application or commercialization of a device, method, or idea that differs from existing norms.
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Strategy
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a pattern or plan that integrates an organization's major goals, policies, and action sequences into a cohesive whole.
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Core Competencies
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The strengths that are unique to an organization.
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Operations Strategy
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Defines how an organization will execute its chosen business strategies.
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Operations Design Choices
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The decisions management must make as to what type of process structure is best suited to produce goods or create services.
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Infrastructure
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Focuses on the nonprocess features and capabilities of the organization and includes the workforce, operating plans and control systems, quality control, organizational structure, compensation systems, learning and innovation systems, and support services.
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Robust
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Goods that are insensitive to external sources of variation.
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Reliability
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The probability that a manufactured good, piece of equipment, or system performs its intended function for a stated period of time under specified operating conditions.
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Quality Function Deployment (QFD)
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Both a philosophy and a set of planning and communication tools that focuses on customer requirements in coordinating the design, manufacturing, and marketing of goods or services.
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Voice of the Customer
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Customer requirements, as expressed in the customer's own terms.
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Prototype Testing
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The process by which a model is constructed to test the good's physical properties or use under actual operating conditions, as well as customer reaction to the prototypes.
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Quality Engineering
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Refers to a process of designing quality into a manufactured good based on a prediction of potential quality problems prior to production.
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Value Engineering
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Refers to the cost avoidance or cost prevention before the good or service is created.
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Value Analysis
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Refers to cost reduction of the manufactured good or service process.
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Failure-Mode-and-Effects Analysis
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A technique in which each compnent of a product is listed along with the way it may fail, the cause of failure, the effect or consequence of failure, and how it can be corrected by improving the design.
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Product and Process Simplification
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The process of trying to simplify designs to reduce complexity and costs and thus improve productivity, quality, flexibility, and customer satisfaction.
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Green Manufacturing or Green Practices
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Focus on improving the environment by better good or service design
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Design for Environment
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The explicit consideration of environmental concerns during the design of goods, services, and processes and includes such practices as designing for recycling and disassembly
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Service Delivery System Design
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Includes facility location and layout, the servicescape, service process and job design, technology and information support systems, and organizational structure.
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Servicescape
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All the physical evidence a customer might use to form an impression. Also provides the behavioral setting where service encounters take place.
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Lean Servicescape Environments
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Provide service using more complicated designs and service systems (ex. hospitals, tickettron outlets, or FedEx kiosks)
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Elaborate Servicescape Environment
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Provide service using more complicated designs and service systems (ex. hospitals, airports, and universities)
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Service Process Design
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The activity of developing an efficient sequence of activities to satisfy both internal and external customer requirements.
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Service Encounter Design
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Focuses on the interaction, directly or indirectly, between the service-providers and the customers.
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Customer Contact
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Refers to the physical presence of the customer in the service delivery system during a service experience.
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High-Contact Systems
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Systems in which the percentage is high.
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Low-Contact Systems
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Systems in which the percentage is low.
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Customer-Contact Requirements
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Measurable performance levels or expectations that define the quality of customer contact with representatives of an organization.
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Empowerment
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Giving people authority to make decisions based on what they feel is right, to have control over their work, to take risks and learn from mistakes, and to promote change
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Service Upset
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Any problem a customer has --real or perceived-- with the service delivery system and includes terms such as service failure, error, defect, mistake, or crisis.
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Service Recovery
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The process of correcting a service upset and satisfying the customer.
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Service Guarantee
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A promise to reward and compensate a customer if a service upset occurs during the service experience.
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Custom or Make-to-Order, Goods and Services
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Generally produced and delivered as one-of-a-kind or in small quantities, and are redesigned to meet specific customers' expectations.
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Option or Assemble-to-Order, Goods and Services
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Configurations of standard parts, sub-assemblies, or services that can be selected by customers from a limited set.
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Standard or Make-to-Stock, Goods and Services
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Made according to a fixed design, and the customer has no options from which to choose.
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Projects
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Large-scale, customized initiatives that consist of many smaller tasks and activities that must be coordinated and completed to finish on time and within budget.
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Job Shop Processes
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Organized around a particular types of general purpose equipment that are flexible and capable of customizing work for individual customers.
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Job Flow Processes
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Organized around a fixed sequence of activities and process steps, such as an assembly line to produce a limited variety of similar goods and services
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Continuous Flow Processes
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Create highly standardized goods and services, usually around the clock in very high volumes.
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Product-Process Matrix
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A model that describes the alignment of process choice with the characteristics of the manufactured good.
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Pathway
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A unique route through a service system
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Customer-Routed Services
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Those that offer customers brad freedom to select the pathways that are best suited for their immediate needs and wants from many possible pathways through the service delivery system.
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Provider-Routed Services
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Constrain customers to follow a very small number of possible and predefined pathways through the service system.
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Service Encounter Activity System
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Consists of all those steps associated service encounters necessary to complete a service transaction and fulfill a customer's wants and needs.
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Product Life Cycle
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A characterization of product growth, maturity, and decline over time.
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Task
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A specific unit of work to create an output
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Activity
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A group of tasks to create and deliver an intermediate or final output.
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Process
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Consists of a group of activities.
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Value chain
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Network of processes.
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Process Map (Flowchart)
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Describes the sequence of all process activities and tasks necessary to create and deliver a desired output or outcome.
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Process Boundary
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The beginning or the end of a process.
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Value Stream
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All value-added activities involved in designing, producing, and delivering good and services to customers.
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Reengineering
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Has been defined as the "fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed."
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Utilization
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The fraction of time a workstation or individual is busy over the long run.
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Throughput
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The average number of entities completed per unit--the output rate--from a process
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Bottleneck
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The work activity that effectively limits throughput of the entire process.
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Flow Time or Cycle Time
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The average time it takes to complete one cycle of a process.
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Facility Layout
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The specific arrangement of physical facilities
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Product Layout
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an arrangement based on the sequence of operations that is performed during the manufacturing od a good or delivery of a service
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Process Layout
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Consists of functional grouping of equipment or activities that do similar work
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Cellular Layout
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The design is not according to the functional characteristics of equipment but rather by self-contained groups of equipment (called cells) needed for producing a particular set of goods and services.
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Fixed-Position Layout
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Consolidates the resources necessary to manufacture a good or deliver a service, such as people, materials, and equipment, in one physical location.
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Flow-Blocking Delay
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Occurs when a work center completes a unit but cannot release it because the inprocess storage at the next stage is full
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Lack-of-Work Delay
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Occurs whenever one stage completes work and no units from the previous stage are awaiting processing
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Assembly Line
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A product layout dedicated to combining the components of a good or service that has been created previously.
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Assembly Line Balance
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A technique to group tasks among work stations so that each workstation has the same amount of work.
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Cycle Time
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The interval between successive outputs coming off the assembly line
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Ergonomics
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Concerned with improving productivity and safety by designing workplaces, equipment, instruments, computers, workstations, and so on that take into account the physical capabilities of people
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Job
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The set of tasks an individual performs
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Job Design
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Involves determining the specific job tasks and responsibilities, the work environment, and the methods by which the tasks will be carried out to meet the goals of operations.
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Job Enlargement
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The horizontal expansion of the job given to the worker more variety--although not necessarily more responsibility.
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Job Enrichment
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The vertical expansion of job duties to give the worker more responsibility
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