36 terms

IF-AT OPM Quiz 1

doing something at the lowest possible cost
doing the right things to create the most value for the company
ratio of quality to price paid. competitive "happiness" is being able to increase quality and reduce price while maintaining or improving profit margins. (this is a way that operations can directly increase customer retention and gain market share.)
operations and supply management
design, operation, and improvement of the systems that create and deliver the firm's primary products and services
transformation process
system by which resources are used to convert inputs into desired output
mass customization
producing products to order in lot sizes of one
operations and supply strategy
setting broad policies and plans for using the resources of a firm to best support the firm's long term competitive strategy
occurs when a firm seeks to match what a competitor is doing by adding new features, services, or technologies to existing activities. This often creates problems if certain trade-offs need to be made.
order winner
a dimension that differentiates the products or services of one firm from those of another
order qualifier
a dimension used to screen a product or service as candidate for purchase
activity-system map
a diagram that shows how a company's strategy is delivered through a set of supporting activities
core capabilities
skills that differentiate a manufacturing or service firm from its competitors
a measure of how well resources are used
the amount of output that a system is capable of achieving over a specific period of time
strategic capacity planning
determining the overall capacity level of capital-intensive resources that best supports the company's long-range competitive strategy
best operating level
the level of capacity for which the process was designed and the volume of output at which average unit cost is minimized
capacity utilization rate
measures how close a firm is to its best operating level
capacity focus
can be operationalized through the plants-within-plants concept, where a plant has several suborganizations specialized for different products-even though they are under the same roof. this permits finding the best operating level for each suborganization
economies of scope
exist when multiple products can be produced at a lower cost in combination than they can be separately
capacity cushion
capacity in excess of expected demand
supply chain
how organizations are linked together, as viewed from a particular company
inventory turnover and weeks of supply
measures of supply chain efficiency that are mathematically the inverse of one another
cost of goods sold
the annual cost for a company to produce the goods or services provided to customers
average aggregate inventory value
the total value of all items held in inventory for the firm valued at cost
weeks of supply
a measure of how many weeks' worth of inventory is in the system at a particular point in time
bullwhip effect
the variability in demand is magnified as we move from the customer to the producer in the supply chain
functional products
stapled that people buy in a wide range of retail outlets, such as grocery stores and gas stations
innovative products
products such as fashionable clothes and personal computers that typically have a life cycle of just a few months
service supply chain
a term that stresses the unique role of the customer as a supplier of input and recipient of output for a service firm
moving some a firm's internal activities and decision responsibility to outside providers
logistics management
functions that support the complete cycle of material flow: from the purchase and internal control of production materials; to the planning and control of work-in-processes; to the purchasing, shipping, and distribution of the finished product
design for logistics
this concept involves consideration of material procurement and distribution costs during the product design phase
transportation mode
how an item is shipped
value density
the value of an item per pound of weight
mass customization
the ability of a company to deliver highly customized products and services to different customers around the world
process postponement
delay of the process step that differentiates a product to as late in the supply chain as possible