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44 Cards in this Set

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  • Back
Any activity or group of activities that takes one or more inputs, transforms and adds value to them, and provides one or more outputs for its customers.
Customers who are either end users or intermediaries (such as manufacturers, wholesalers, or retailers) buying the firm's finished products and services.
external customers
One or more other employees who rely on inputs from earlier processes in order to perform processes in the next office, shop, or department.
internal customers
The concept of a process within a process.
nested process
The direction and control of the processes that transforms inputs into products and services
operations management
An operations management decision that is less structured and has long-term consequences.
strategic decision
An operations management decision that is more structured, routine, and repetitive which has only short-term consequences.
tactical desision
The value of outputs (goods and services) produced divided by the values of input resources (wages, costs of equipment, and the like).
An index of the output per person or hour worked.
labor productivity
An index of the output per machine or hours run.
machine productivity
An index of the output provided by more than one of the resources used in production.
multifactor productivity
It coordinates the firm's overall goals with its core competencies. It determines which customers the firm will serve, which new products or services it will produce, which responses it will take to changes in its business and socioeconomic environment, and which strategy it will employ in international markets.
corporate strategy
Categorizes a firm's customers, identifies their needs, and assesses competitor's strengths.
market analysis
Operating advantages that a firm's processes must possess to outperform its competitors.
competitive priorities
The unique resources and strengths that an organization's management considers when formulating strategy.
core competencies
An agreement with another firm that may take one of three forms and which is a way for a firm to open foreign markets.
strategic alliance
A strategic alliance that often arises when one firm has core competencies that another needs but is unwilling or unable to duplicate. These are common in buyer-seller relationships.
collaborative effort
A strategic alliance in which two firms agree to produce a product or service jointly. These are often used by firms to gain access to foreign markets.
joint venture
A strategic alliance in which one company licenses its production or service methods to another.
technology licensing
The process of identifying groups of customers with enough in common to warrant the design and provision of products or services that the larger group wants and needs.
market segmentation
Identifies the needs of each segment and assesses how well competitors are addressing those needs. It includes both tangible and intangible product attributes and features that a customer desires.
needs assessment
A core product or service and a set of peripheral products of services that the customer views as a whole.
customer benefit package
The means by which operations implements the firm's corporate strategy.
operations strategy
Operating advantages that are related to a firm's processes. Cost, quality, time, and flexibility are the four groups into which these are classified.
competitive priorities
These are the eight possible competitive priorites.
low-cost operations
high-performance design
consistent quality
fast delivery time
on-time delivery
development speed
volume flexibility
Determination of the level of operations performance required in making a product or performing a service.
high-performance design
Measurement of the frequency with which the product or service meets design specifications.
consistent quality
The elapsed time between receiving a customer's order and filling it.
fast delivery time
The way industrial buyers often refer to fast delivery time.
lead time
Measurement of the frequency with which delivery-time promises are met.
on-time delivery
Measurement of how quickly a new product or service is introduced, covering the elapsed time from idea generation through final design and production.
development speed
The process by which managers define the steps and time needed to deliver a product or service, and then critically analyze each step to determine whether they can save time without hurting quality.
time-based competition
A process during which design engineers, manufacturing specialists, buyers, and quality specialists work jointly to design a product or service and select the production process.
concurrent engineering
The ability to satisfy the unique needs of each customer by changing product or service designs.
The ability to accelerate or decelerate the rate of production quickly to handle fluctuations in demand.
volume flexibility
A competitive priority that is a requirement for doing business in a particular market segment.
order qualifier
The service strategy utilized by processes that provide services with little variety in high volumes.
standardized-services strategy
The service strategy that designs operations to include processes that produce a set of standardized services and processes that are devoted to assembling standardized offerings for a specific customer's needs.
assemble-to-order services strategy
A service strategy designed to provide individualized services.
customized-services strategy
A manufacturing strategy that involves holding items in stock for immediate delivery, thereby minimizing customer delivery times.
make-to-stock strategy
The approach used by firms that employ a make-to-stock strategy.
mass production
An approach to producing customized products from relatively few assemblies and components after customer orders are received.
assemble-to-order manufacturing strategy
A strategy used by manufacturers that make products to customer specifications in low volumes.
make-to-order strategy
An example of the assemble-to-order strategy, whereby a firm's flexible processes generate customized products or services in high volumes at reasonably low costs.
mass customization