CHAP 1 OM & value chain Flashcards
efficiency
measure of how well resources are used in creating outputs
Operations Management
is the science and art of ensuring that goods, and services are created and delivered successfully to customers.
cost and quality
contributes to profitability and long run success of business
3 issues at the core of operations mngt
efficiency, cost, and quality
physical product that you can see, touch, or possibly consume
good
is one that does not quickly wear out and typically lasts at least 3 yrs
durable good
one that is no longer useful once it’s used, or lasts for less than 3 yrs
non-durable good
found in industries such as manufacturing, farming, forestry, mining, construction, and fishing
goods- producing firms
is any primary or complementary activity that does not directly produce a physical product
service
an interaction between customer and the service provider
service encounter
any episodes, transactions, or experience in which a customer comes into contact with any aspect of the delivery system, however remote, and there by has an opportunity to form an impression
moments of truth
integrates marketing, human resources, and operations functions to plan,, create , and deliver goods and services, and their associated service encounter
service management
is the perception of the benefits associated with a good, service, or bundle of goods & services in relation to what buyers are willing to pay for them
value
defined as a set of tangible (goods-content) and intangible (service-content) features that the customer recognizes, pays for, uses, or experiences
CBP (customer benefit package)
the core offering that attracts customers and responds to their basic needs.
primary good or service
are those that are not essential to the primary good or service, but enhance it.]
peripheral goods or services
is a CBP feature that departs from the standard CBP and is normally location or firm specific
variant
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 deliver them to the customer.
value chain
is the portion of the value chain that focuses primarily on the physical movement of goods and materials, and supporting flows of info and financial transactions through the supply, production, and distribution processes
supply chain
is a sequence of activities that is intended to create a certain result, such as a physical good, a service, or information.
process
3 key processes in business
-Core processes
-support procesess
- general management processes
focused on producing or delivering goods and services
core processes
such as purchasing materials and supplies
support processes
includes accounting and information systems
general management processes
activity includes shipping finished goods to distribution centers
goods- producing supply chain
are warehouses that act as intermediaries between factories and customers, shipping directly to customers or to retail stores
distribution centers (DC)
refers to raw material, work in process, or finished goods that are maintained to support production or satisfy customer demand
inventory
refers to an organization’s ability to strategically address current business needs and successfully develop a long term strategy that embraces opportunities and manages risk
sustainability
3 perspective of sustainability, also referred as triple bottom line
environmental, social, and economic
org’s commitment to long term quality of our environment
environmental sustainability
org’s commitment to maintain healthy communities and a society that improves the quality of life
social sustainability
org’s commitment to address current business needs and economic vitality
economic vitality
a process of transforming data into actions through analysis and insights in the context of organizational decision making and problem solving
business analytics
