chap 2 Flashcards
definition of Key Purchasing Criterias
The major elements influencing a purchase: price, quality, variety, and timeliness
What formula describes value of a product to a customer
2 Cathegories of purchasing criteria
- Order qualifiers
- Order winners
Order Qualifiers
Purchasing criteria that customers perceive as minimum standards of acceptability to be considered for purchase
Order Winners
urchasing criteria that cause the organization to be perceived as better than the competition
What are the 4 criterias businesses compete on
The importance given to operations characteristics: cost, quality, flexibility, and delivery.
Strategic Planning
The process of determining a long-term plan that will set a new direction for the organiaztion
Mission of an organization
Determins where the organization is going
Vision
Where the organization desires to be in the future
Values
Shared beliefs of the organization’s stakeholders
competitiveness
the ability and performance of an organization in the marketplace compared to other organizations that offer similar goods or services
What are the 3 componants of Timeliness
- How quickly is a product or service delivered to the customer
- How quickly new products are developed
- Rate at which changes to product or process are made
Tactics
Medium-term plans used as components of a strategy
Action Plan
medium- or short-term project to accomplish a specific objective, assigned to an individual, with a deadline and the resources needed
Definition of Operations Strategy
The approach that is used to guide the operations function. it answers organizational goals
9 strategic (approach that is used to guide the operations function) decision categories
Productivity
A measure of productive use of resources, usually expressed as the ratio of output to input.
Productivity growth
