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92 Cards in this Set
- Front
- Back
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External customers
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are those who purchase the goods and services
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Internal customers
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are those who receive the output of others within the firm. They are part of the transformation process.
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Manufacturing processes
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change materials in one or more of the following dimensions
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Goods Production
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*Tangible
*Can be inventoried *Low customer contact *Capital intensive *Quality easily measured |
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Service Production
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*Intangible
*Can't be inventoried *High customer contact *Labor intensive *Quality hard to measure |
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Value chains
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an interrelated series of processes that produce a service or product to the satisfaction of customers
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Core processes
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deliver value to external customers
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Support processes
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provide vital inputs for the core processes
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Customer relationship processes
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Indentify, attract, and build relationships with external customers and facilitate the placement of orders
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New service/product developement processes
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Design and develop new services or products from inputs received from external customer satisfaction
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Order fulfillment processes
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The activities required to produce and deliver the service or product to the external customers
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Supplier relationship processes
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Select suppliers of services, materials and information and facilitate the timely and efficient flow of these items into the firm
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Basic Desicion-making steps
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1. Recognize and clearly define the problem.
2. Collect the information needed to analyze possible alternatives. 3. Choose the most attractive alternative 4. Implement the chosen alternative 5. Follow up to make sure if it was right |
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Strategic Decisions (Long-term)
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-Development of new capabilities
-Maintenance of existing capabilities -Design of new processes -Development and organization of value chains -Key performance measures |
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Tactical Decisions (Short-term)
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-Process improvement and performance measures
-Management and planning of projects -Generation of production and staffing plans -Inventory management -Resource scheduling |
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Productivity
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the value of outputs (services and products) produced, divided by the value of input resources(wages, costs of equipment, etc.)
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Operations strategy
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means by which operations implements the firm's corporate strategy and helps to build a customer-driven firm
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Corporate strategy
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views the organization as a system of interconnected parts, each working with the others to achieve desired goals
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Core competencies
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the unique resources and strengths an organization possesses
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global strategy
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buying foreign services or parts and entering or expanding foreign markets
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market analysis
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one key to developing a customer-driven strategy and is accomplished in two parts
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market segmentation
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identifies groups of customers with enough in common to warrant developing services and or products for them.
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needs assessment
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identifies the needs of each market segment
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competitive capabilities
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the cost, quality, time and flexibility dimensions of competitive priorities that a process or value chain actually possesses and is able to deliver
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Low cost
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delivering a service or product at the lowest possible cost to the satisfaction of the customer
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top quality
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delivering an outstanding service or product
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consistent quality
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producing services or products that meet design specifications on a consistent basis
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delivery speed
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quickly filling a customer's order
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on-time delivery
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means meeting the delivery time promises
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development speed
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quickly introducing a new service or product
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time-based competition
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a strategy that focuses on development speed and delivery speed
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customization
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satisfying the unique needs of each customer by changing the service or product designs
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variety
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handling a wide assortment of services or products efficiently
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volume flexibility
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requires accelerating or decelerating the rate of production quickly to handle large fluctuations in demand
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Order winners
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criteria for differentiating services or products of one firm from those of another
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Order qualifiers
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demonstrated levels of performance required to do business in a particular market segment
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Development strategies
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1. Product variety-Offering a wide assortment
2. Design-ease of use and desirable features 3. Innovation-translate new technology into new products 4. Service-Products w/services added |
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Quality Function Deployment
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a means of translating customer requirements into the appropriate technical requirements for service or product development
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Concurrent Engineering
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brings product engineers, process engineers, marketers, buyers, information specialists, quality specialists, and suppliers together to design a product and the processes that will meet customer expectations
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Process structure
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determines how processes are designed relative to the kinds of resources needed, how resources are partitioned between them, and their key characteristics
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Customer involvement
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the ways in which customers become part of the process and the extent of their participation
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Resource flexibility
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the ease with which employees and equipment can handle a wide variety of products, output levels, duties, and functions
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Capital intensity
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the mix of equipment and human skills in a process
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Good process strategy
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a service process depends first and foremost on the type and amount of customer contact
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customer contact
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the extent to which the customer is present, is actively involved, and receives personal attention during the process
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Active contact
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the customer is very much part of the creation of the service and affects the service process itself
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passive contact
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the customer is not involved in tailoring the process to meet special needs or in how the process is performed
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process complexity
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the number and intricacy of the steps required to perform the process
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process divergence
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the extent to which the process is highly customized with considerable latitude as to how it is performed
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flexible flow
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the customers, materials, or information move in diverse ways, with the path of one customer or job often crisscrossing the path that the next one will take
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Line flow
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the customers, materials or information move linearly from one operation to the next, according to a fixed sequence.
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front office
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process with high customer contact where the service provider interacts directly with the internal or external customer
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hybrid office
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a process with moderate levels of customer contact and standard services with some options available
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back office
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a process with low customer contact and little service customization
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process choice
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a way of structuring the process by organizing resources around the process or organizing them around the products
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job process
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a process with the flexibility needed to produce a wide variety of products in significant quantities, with considerable complexity and divergence in the steps performed
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batch process
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a process that differs from the job process with respect to volume, variety and quantity
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line process
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a process that lies between the batch and continuous processes on the continuum
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continuous flow
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the extreme end of high volume, standardized production and rigid lines, with production not starting and stopping for long time intervals
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make-to-order strategy
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a strategy used by manufacturers that make products to customer specifications in low volume
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assemble-to-order strategy
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a strategy for producing a wide variety of products from relatively few assemblies and components after thr customer orders are received
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make-to-stock strategy
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a strategy that involves holding items in stock for immediate delivery thereby minimizing customer delivery times
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mass production
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a term sometimes used in the popular press for a line process that uses the make-to-stock strategy
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improved competitive capabilities
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more customer involvement can mean better quality, faster delivery, greater flexibility, and even lower cost
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emerging technologies
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companies can now engage in an active dialogue with customers and make them partners in creating value
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flexible workforce
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a workforce whose members are capable of doing many tasks, either at their own workstations or as they move from one workstation to another
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flexible equipment
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low volumes mean that process designers should select flexible, general purpose equipment
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capital intensity
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the mix of equipment and human skills in the progress, the greater the relative cost of equipment, the greater is the capital intensity
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automation
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a system, process, or piece of equipement that is self-acting and self-regulating
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fixed automation
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a manufacturing process that produces one type of part or product in a fixed sequence of simple operations
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Flexible automation
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a manufacturing process that can be changed easily to handle various products
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economies of scope
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economies that reflect the ability to produce mutiple products more cheaply in combination than separately
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Plants w/i plants (PWPs)
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different operations w/i a facility w/individualized competitive priorities, processes, and workforces under the same roof
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focused factories
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the result of a firm;s splitting large plans that produce all the company;s products into several specialized smaller plants
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process reengineering
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a fundamental rethinking and radical redesign of processes to improve performance dramatically in terms of cost, quality, service, and speed
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process improvement
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the systematic study of the activities and flows of each process to improve it
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project
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an interrelated set of activities with a definite starting and ending point, which results in a unique outcome for a specific allocation of resources
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three main goals of project management
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1. Complete the project on time or earlier
2. Do not exceed the budget 3. Meet the specifications to the satisfaction of the customer |
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Project management
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a systemized, phased approach to defining, organizing, planning, monitoring, and controlling projects
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Program
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a collection of projects
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cross functional effort
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a project may be under the overall purview of a single dept. other depts. likely should be involved
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Project Objective statement
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objectives and essence of the project
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work breakdown structure
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a statement of all work that has to be completed
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activity
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smallest unit of work effort comsuming both the time and resources that the project manager can schedule and control
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task ownership
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each activity must have an owner who is responsible for doing the work
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network diagram
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displays the interrelated activities using circles and arrows that depict the relationship between activities
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precedence relationships
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determines a sequence for undertaking activities, and specify that any given activity cannot start until a preceding activity has been completed
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activity slack
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the maximum length of time that an activity can be delayed w/o delaying the entire project
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Gantt Chart
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a project schedule, usually created by the project manager using computer software, the superimpose project activities, with their precedences relationships and estimated duration times, on a time line
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Free slack
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the amount of time an activity's earliest finish time can be delayed without delaying the earliest start time of any activity that immediately follows
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Crashing
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expeditin some activities to reduce overall project completion time and total project costs
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total project cost
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the sum of direct costs, indirect costs, and penalty costs
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