Chapter 2: Operations and Supply Chain Strategy

27 terms by katepolley

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operations strategy

A set of competitive priorieties coupled with supply chain structural and infrastructural design choice intended to create capabilities that support a set of value propositions targeted to address the needs of critical customers.

corporate strategy

determines the overall mission of the firm and the types of businesses that the firm wants to be in.

strategic business unit (SBU)

The semi-independent organizaitons used to manage different product and market segments.

business unit strategy

determines how a strategic business unit will compete.

functional strategy

determines how the function will support the overall business unit strategy.

customers

parties that use or consume the products of operations management processes.

critical customer

a customer that the firm has targeted as being important to its future success.

order winners

product traits that cause a customer to select one product over its competitors.

order qualifiers

product traits that must be met at a certain level for the product to be considered by the customer.

order losers

product traits that if not satisfied, cause the loss of either the current order of future orders.

value proposition

a statement of what the firm offers the customer that is viewed as attractive to the customer and different from what is offered by its competitors.

quality

a product's fitness for consumption in terms of meeting customers' needs and desires.

timeliness

the degree to which a product is delivered or available when the customer wants it.

lead time

The amount of time that passes between the beginning and ending of a set of activities.

time to market

The total time that a firm takes to conceive, design, test, produce, and deliver a new or revised product for the marketplace.

order to delivery lead time

the time that passes from the instant the customer place an order for a product until the instant that the customer receives the product.

cost

the expenses incurred in acquiring and using a product.

innovation

both radical and incremental changes in process and products.

flexibility

an operation's ability to respond efficiently to changes in products, processes (including suppl chain relationships), and competitive enviroments.

Sustainablity

maintaning operation that are both profitable and nondamaging to society or the environment.

risk management

developing operations that antcicipate and deal with problems resulting from natural events, social factors, economic issues, or technological issues.

capabilities

unique and superior operational abilities that stem from the routines, skills, and processes that the firm develops and uses.

core capabilities

The skills, processes, and systems that are unique to the firm and that enable it to deliver products that are both valued by the customer and difficult for competitors to imitate.

fit

the extent to which there is alignment between the firm's operational capabilities, its value proposition, and the desires of its critical customers.

strategic profit model

a model that shows how operational changes affect the overall performance of a business unit.

balanced scorecard

an integrative approach for developing strategic, organizational-level metrics.

supply chain operational reference model (SCOR)

a model for assessing, charting, and describing supply chain processes and their performance.

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