107 terms

Operations Management Exam 1

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Good
a physical product that you can see,touch,or possibly consume
durable good
does not quickly wear out and typically lasts at least three years.
Service
any primary or complementary activity that does not directly produce a physical product
Nondurable good
is no longer useful once it's used
Service Encounter
an interaction between the customer and the service provider
Moments of Truth
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
Service Management
integrates marketing, human resources, and operations functions to plan, create, and deliver goods and services, and their associated service encounters
Customer Benefit Package or CBP
is a clearly defined set of tangible (goods-content) and intangible (service-content) features that the customer recognizes, pays for, uses, or experiences
PRIMARY Good or Service
the "core" offering that attracts customers and responds to their basic needs
PERHIPHERAL Good or Service
are those that are not essential to the primary good or service, but enhance it
Variant
a CBP feature that departs from the standard CBP and is normally location-or firm-specific "fish pond at auto dealer"
Process
is a sequence of activities that is intended to create a certain result
Value Creation Process
focused on producing or delivering an organization's primary goods or services, such as filling and shipping a customer's order, assembling a dishwasher, or providing a home mortgage
Support Processes
process such as purchasing materials and supplies used in manufacturing, managing inventory, installation, health benefits, technology acquisition,
Sustainability
efers to an organization's ability to strategically address current business needs and successfully develop a long-term strategy that embraces opportunities and manages risk for all products, systems, supply chains, and processes to preserve resources for future generations.
Environmental Sustainability
an organization's commitment to the long-term quality of our environment.
Social Sustainability
an organization's commitment to maintain healthy communities and a society that improves the quality of life
Economic Sustainability
is an organization's commitment to address current business needs and economic vitality, and to have the agility and strategic management to prepare successfully for future business, markets, and operating environments
Value Chain
is a network of facilities and processes that describes the flow of materials, finished goods, services, information, and financial transactions from suppliers, through the facilities and processes that create goods and services, and those that deliver them to the customer.
Supply Chain
is 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
Value
is the perception of the benefits associated with a good, service, or bundle of goods and services (i.e., the customer benefit package) in relation to what buyers are willing to pay for them
Value Proposition
A competitively dominant customer experience
Operational Structure
the configuration of resources such as suppliers, factories, warehouses, distributors, technical support centers, engineering design and sales offices, and communication links
Vertical Integration
the process of acquiring and consolidating elements of a value chain to achieve more control
Backward Integration
acquiring capabilities toward suppliers
Forward Integration
acquiring capabilities toward distribution or even customers
Outsourcing
is the process of having suppliers provide goods and services that were previously provided internally
Value Chain Integration
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
Offshoring
is the building, acquiring, or moving of process capabilities from a domestic location to another country location while maintaining ownership and control.
Multinational Enterprise
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
Competitive Advantage
denotes a firm's ability to achieve market and financial superiority over its competitors
Order Qualifiers
Basic customer expectations are generally considered the minimum performance level required to stay in business
Order Winners
goods and service features and performance characteristics that differentiate one customer benefit package from another, and win the customer's business
Search Attributes
are those that a customer can determine prior to purchasing the goods and/or services.
Experience Attributes
are those that can be discerned only after purchase or during consumption or use
Credence Attributes
are any aspects of a good or service that the customer must believe in, but cannot personally evaluate even after purchase and consumption
Competitive Priorities
represent the strategic emphasis that a firm places on certain performance measures and operational capabilities within a value chain
Mass Customization
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.
Innovation
is the discovery and practical application or commercialization of a device, method, or idea that differs from existing norms
Strategy
a pattern or plan that integrates an organization's major goals, policies, and action sequences into a cohesive whole.
Core Competencies
the strengths that are unique to that organization.
Operations Strategy
how an organization will execute its chosen business strategies
Operations Design Choices
the decisions management must make as to what type of process structure is best suited to produce goods or create services
Infrastructure
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.
Prototype Testing
he process by which a model (real or simulated) is constructed to test the product's performance under actual operating conditions, as well as consumer reactions to the prototypes
Voice of the Customer
Customer requirements, as expressed in the customer's own words
Quality Formation Deployment QFD
an approach to guide the design, creation, and marketing of goods and services by integrating the voice of the customer into all decisions
Reliability
he probability that a manufactured good, piece of equipment, or system performs its intended function for a stated period of time under specified operating conditions
Design Failure Mode and Effects Analysis DFMEA
a technique for identifying how a product may fail; the effect of a failure on the customer; seriousness, likelihood of occurrence, and ability to detect a potential failure; cause of failure
Design for Manufacturability DFM
is the process of designing a product for efficient production at the highest level of quality
Product Simplification
he process of trying to simplify designs to reduce complexity and costs and thus improve productivity, quality, flexibility, and customer satisfaction
Design for Environment DFE
is the explicit consideration of environmental concerns during the design of goods, services, and processes and includes such practices as designing for recycling and disassembly
Service Delivery System Design
includes facility location and layout, the servicescape, service process and job design, technology and information support systems, and organizational structure
Servicescape
all the physical evidence a customer might use to form an impression, also provides the behavioral setting where service encounters take place
Lean Servicescape environments
very simple
Elaborate Servicescape Environments
complicated designs and service systems
Service Process Design
the activity of developing an efficient sequence of activities to satisfy both internal and external customer requirements
Service Encounter Design
focuses on the interaction, directly or indirectly, between the service-provider(s) and the customer
Customer Contact
refers to the physical or virtual presence of the customer in the service delivery system during a service experience
High Contact Systems
Systems in which the contact percentage is high like estate planning and hotel check-in
Low Contact Systems
Systems in which the contact percentage is low like construction planning
Customer Contact Requirements
measurable performance levels or expectations that define the quality of customer contact with representatives of an organization
Empowerment
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
Service Upset
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
Service Guarantee
a promise to reward and compensate a customer if a service upset occurs during the service experience
Service Recovery
is the process of correcting a service upset and satisfying the customer
Custom or Make to order Goods & Services
are generally produced and delivered as one-of-a-kind or in small quantities, and are designed to meet specific customers' specifications
Option or Assemble to Order Goods & Services
are configurations of standard parts, subassemblies, or services that can be selected by customers from a limited set
Standard or Make to Stock Goods and Services
are made according to a fixed design, and the customer has no options from which to choose
Projects
arge-scale, customized initiatives that consist of many smaller tasks and activities that must be coordinated and completed to finish on time and within budget
Job Shop Processes
organized around particular types of general-purpose equipment that are flexible and capable of customizing work for individual customers
Flow Shop Processes
organized around a fixed sequence of activities and process steps, such as an assembly line, to produce a limited variety of similar goods or services
Continuous Flow Processes
create highly standardized goods or services, usually around the clock in very high volumes
Product Life Cycle
a characterization of product growth, maturity, and decline over time
Product Process Matrix
a model that describes the alignment of process choice with the characteristics of the manufactured good
Pathway
a unique route through a service system
Customer Routed Services
are those that offer customers broad freedom to select the pathways that are best suited for their immediate needs and wants from many possible pathways through the service delivery system
Provider Routed Services
onstrain customers to follow a very small number of possible and predefined pathways through the service system
Service Encounter Activity Sequence
consists of all the process steps and associated service encounters necessary to complete a service transaction and fulfill a customer's wants and needs
Activity
a group of tasks needed to create and deliver an intermediate or final output
Task
a specific unit of work required to create an output
4 Levels of Process Design
Task, Activity,Process,Value Chain
Process Map (flowchart)
describes the sequence of all process activities and tasks necessary to create and deliver a desired output or outcome
Process Boundary
The beginning or end of a process
Value Stream
refers to all value-added activities involved in designing, producing, and delivering goods and services to customers
Reengineering
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
Utilization
the fraction of time a workstation or individual is busy over the long run
Throughput
The average number of entities completed per unit time, the output rate
Bottleneck
the work activity that effectively limits throughput of the entire process
Flow time or Cycle Time
the average time it takes to complete one cycle of a process
Distribution Centers (DCs)
are warehouses that act as intermediaries between factories and customers, shipping directly to customers or to retail stores where products are made available to customers
Inventory
refers to raw materials, work-in-process, or finished goods that are maintained to support production or satisfy customer demand
Supply Chain Operations Reference (SCOR) model
is a framework for understanding the scope of SCM that is based on five basic functions involved in managing a supply chain: plan, source, make, deliver, and return.
Supply Chain Management (SCM)
the management of all activities that facilitate the fulfillment of a customer order for a manufactured good to achieve satisfied customers at reasonable cost
Contract Manufacturer
firm that specializes in certain types of goods-producing activities, such as customized design, manufacturing, assembly, and packaging, and works under contract for end users
Efficient Supply Chains
designed for efficiency and low cost by minimizing inventory and maximizing efficiencies in process flow
Responsive Supply Chains
focus on flexibility and responsive service and are able to react quickly to changing market demand and requirements
Push System
produces goods in advance of customer demand using a forecast of sales and moves them through the supply chain to points of sale where they are stored as finished goods inventory
Pull System
produces only what is needed at upstream stages in the supply chain in response to customer demand signals from downstream stages
Push-Pull Boundary
The point in the supply chain that separates the push system from the pull system
Postponement
the process of delaying product customization until the product is closer to the customer at the end of the supply chain
Green Sustainable Supply Chain
can be defined as "the process of using environmentally friendly inputs and transforming these inputs through change agents—whose by-products can improve or be recycled within the existing environment
Reverse Logistics
refers to managing the flow of finished goods, materials, or components that may be unusable or discarded through the supply chain from customers toward either suppliers, distributors, or manufacturers for the purpose of reuse, resale, or disposal.
Order Amplification
a phenomenon that occurs when each member of a supply chain "orders up" to buffer its own inventory.
Multisite Management
the process of managing geographically dispersed service-providing facilities.
Center of Gravity Method
determines the X and Y coordinates (location) for a single facility. Although it does not explicitly address customer service objectives, it can be used to assist managers in balancing cost and service objectives
Vendor Managed Inventory
where the vendor (a consumer goods manufacturer, for example) monitors and manages inventory for the customer (a grocery store, for example)
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