Chapter 1: Introduction to OSCM Flashcards
Define Operations and supply chain management (OSCM)
Operations and supply chain management (OSCM): The design, operation, and improvement of the systems that create and deliver the firm’s primary products and services.
Define Process and state the 5 Operations and Supply Chain Processes
Process: One or more activities that transform inputs into outputs.
- Planning: a firm must determine how anticipated demand will be met with available resources
- Sourcing: involves the selection of suppliers that will deliver the goods and services needed to create the firm’s product
- Making: where the major product is produced or the service is provided
- Delivering: the logistics process
- Returning: receiving excess products back from customers
Differentiate between Pure Goods, Core Goods, Core Services, Pure Services
Pure goods: Focus only on the products (chemicals).
Core goods: Products that also contain a service component as part of the company (cars).
Core services: Services that integrate tangible products such as (telephone cables).
Pure services: Focus only on services (University).
Define Product–Service Bundling
Product–service bundling: When a firm builds service activities into its product offerings to create additional value for the customer.
Define Efficiency, Effectiveness, and Value
Efficiency: Doing something at the lowest possible cost.
Effectiveness: Doing the right things to create the most value for the customer.
Value: The attractiveness of a product relative to its price.
Define Benchmarking
Benchmarking: When one company studies the processes of another company to identify best practices.
Define Manufacturing strategy (historical start of Supply Chain Management)
Manufacturing strategy: Emphasizes how a factory’s capabilities could be used strategically to gain advantage over a competing company.
Lean Manufacturing: Define Just-in-time (JIT) and Total quality control (TQC)
Lean Manufacturing focuses on minimizing waste within manufacturing systems while simultaneously maximizing productivity
Just-in-time (JIT): An integrated set of activities designed to achieve high-volume production using minimal inventories of parts that arrive exactly when they are needed.
Total quality control (TQC): Aggressively seeks to eliminate causes of production defects.
define Total quality management (TQM)
Total quality management (TQM): Managing the entire organization so that it excels on all dimensions of products and services that are important to the customer.
define Business Process Reengineering (BPR)
Business Process Reengineering (BPR): An approach to improving business processes that seeks to make revolutionary changes as opposed to evolutionary (small) changes.
Define Six Sigma
Six Sigma: A statistical term to describe the quality goal of no more than 3.4 defects out of every million units. Also refers to a quality improvement philosophy and program.
Define Mass customization
Mass customization: The ability to produce a unique product exactly to a particular customer’s requirements.
Define Electronic commerce
Electronic commerce: The use of the Internet as an essential element of business activity.
Define Sustainability
Sustainability: The ability to meet current resource needs without compromising the ability of future generations to meet their needs.
Define Triple bottom line
Triple bottom line: A business strategy that includes social, economic, and environmental criteria.
