Ch 1: Strategy, Products, Capacity

Question 1

operations and supply chain management

Answer 1

improvement of systems that create/deliver the firm’s products

Question 2

operations and supply chain management (OSCM) is… (3)

Answer 2

• a functional field of business
• clear lines of mg responsibilities
• concerned w/ mg of entire production/delivery system

= END to END supply chain

Question 3

process activities: planning

Answer 3

processes needed to operating an existing supply chain

Question 4

process activities: sourcing

Answer 4

selection of suppliers that will deliver the goods/services needed to create product

Question 5

process activities: making

Answer 5

producing the major product/service

Question 6

process activities: delivering

Answer 6

logistics processes such as
selecting carriers,
coordinating the movement of goods/info,
and collecting payments from customers

Question 7

process activities: returning

Answer 7

receiving worn-out, excess, and/or defective products back from customers

Question 8

operations

Answer 8

manufacturing/service PROCESSES USED to transform resources into product

Question 9

supply chain

Answer 9

processes that move INFORMATION and material to and from the firm

Question 10

enterprise resource planning (ERP)

Answer 10

“one-stop shop” system everyone within an org has access to this info
gives org ability to work cross functionally, seamlessly

Question 11

material requirement planning (MRP)

Answer 11

system where only certain people within an org have access to this info; only those involved with MRP

Question 12

manufacturing resource planning (MRP2)

Answer 12

system where a bit more people have access to data than MRP1, but still not everyone
when manufacturing comes into play, those involved with the process need the access to that info as well

Question 13

pure goods vs
core goods

Answer 13

• food products, chemicals, mining
• appliances, automobiles, data storage systems

Question 14

core services vs
pure services

Answer 14

• hotels, airlines, internet service providers
• university, medical, investment

Question 15

good vs service

Answer 15

1. can be resold and inventoried
2. some aspects of quality measurable
3. tangible, often homogenous
4. difficult to inventory
5. quality difficult to measure
6. intangible, often heterogenous
7. perishable and time-dependent

Question 16

efficiency

Answer 16

lowest possible cost, fastest time w/o sacrificing quality

Question 17

effectiveness

Answer 17

relevant to the outcome; creating the most value

Question 18

value

Answer 18

quality divided by price
quality = attractiveness of a product - features, durability..

Question 19

benchmarking

Answer 19

process in which one company studies the processes of another company/industry to identify best practices

comparison of firms is important to INVESTORS

Question 20

labor productivity

Answer 20

net income per employee

Question 21

receivables turnover ratio

Answer 21

= annual credit sales/avg acc receivables

efficiency in collecting sales on credit

Question 22

inventory turnover

Answer 22

=COGS/avg inventory value

efficiency in turning inventory into sales

Question 23

asset turnover

Answer 23

=rev or sales/total assets

efficiency at using its assets in generating sales revenue

Question 24

product-service bundling

Answer 24

a company that builds service activities into its product offerings for its customers
- maintenance
- part provisioning
- training
- total systems design/R&D

a well known pioneer in this area is IBM

Question 25

manufacturing strategy

Answer 25

emphasizes how a factory’s capabilities could be used strategically to gain advantage over a competing company; central to this thought was the notion of trade-offs (= low cost, high quality, high flexibility)

Question 26

just-in-time

Answer 26

set of activities achieving high-volume using minimal inventory arriving only exactly when they are needed (Japan)

Question 27

total quality control

Answer 27

aggressively seeks to eliminate causes of production defects

Question 28

lean manufacturing

Answer 28

to achieve high customer service w/ minimum levels of inventory investment
(= JIT + TQC)

Question 29

service quality and productivity

Answer 29

unique approach to quality pioneered by McDonald’s serving as a reference point to high-volume standardized services

Question 30

total quality management

Answer 30

managing an entire org so it excels in all dimensions of products/services important to the customer

Question 31

business process reengineering

Answer 31

an approach to improving bus. processes that seeks to make revolutionary changes as opposed to evolutionary (small) changes

Question 32

electronic commerce

Answer 32

the use of internet as an essential element of business activity

Question 33

six sigma quality

Answer 33

quality goal of no more than 3.4 defects out of every 1 million units

Question 34

sustainability

Answer 34

ability to maintain balance in a system

Question 35

triple bottom line

Answer 35

profit - economic criteria for sustainability
planet - environmental criteria
people - social criteria

Question 36

business analytics

Answer 36

analysis of data to better solve business problems

Question 37

Internet of Things

Answer 37

the billions of devices that are connected to the internet

Question 38

cash conversion cycle=

Answer 38

days sales outstanding +
days inventory -
days payables

time it takes a company to convert the money it spends on raw materials into profit