CH. 2 Operations & Supply Chain Strategy for FINAL EXAM Flashcards
A set of competitive priorities coupled with supply chain structural and infrastructural design choices intended to create capabilities that support a set of value propositions targeted to address the needs of critical customers.
operations strategy
determines the overall mission of the firm and the types of businesses that the firm wants to be in.
corporate strategy
the semi-independent organizations used to manage different product and market segments.
strategic business units (SBU)
when a firm successfully formulates and implements a value-creating strategy.
strategic competitiveness
an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage.
strategy
when a firm implements a value-creating strategy that competitors are unable to duplicate or find too costly to imitate.
competitive advantage
determines how the function will support the overall business unit strategy
functional strategy
the customer or customer segment receiving priority because it is critical to the firm’s current or future success.
critical customer
all of the tangible or intangible “benefits” that customers can expect to obtain by using the products offered by the firm
value proposition
operational activities that the firm can perform well; these define the types of problems and solutions that operations can address proficiently.
capabilities
product traits that cause a customer to select one product over its competitors.
order winners
product traits that must be met at a certain level for the product to be considered by the customer.
order qualifier
product traits that, if not satisfied, cause the loss of either the current order or future orders.
order losers
A collection of product and service features that is both attractive to customers and different than competitors’ offerings.
value proposition
A product’s fitness for consumption in terms of meeting customers’ needs and desires.
quality
the degree to which a product is delivered or available when the customer wants it.
timeliness
the amount of time that passes between the beginning and ending of a set of activities.
lead time
the total time that a firm takes to conceive, design, test, produce, and deliver a new or revised product for the marketplace.
time to market
the time that passes from the instant the customer places an order for a product until the instant that the customer receives the product.
order-to-delivery lead time
both radical and incremental changes in process and products
innovation
the expenses incurred in acquiring and using a product.
cost
an operations ability to respond efficiently to changes in products, processes (including supply chain relationships), and competitive environments.
flexibility
maintaining operations that are both profitable and non dampening to society or the environment.
sustainability
developing operations that anticipate and deal with problems resulting from natural events, social factors, economic issues, or technological issues.
risk management
