Chapter 1 - OSCM Flashcards
It is the design, operations, and improvement of the systems that create and deliver the firm’s primary products and services.
Operations and supply chain management (OSCM)
it refers to manufacturing and service processes that are used to transform the resources employed by a firm into a product desired by customers.
E.g. Automobile or a computer
Operations
This is a process that would produce an intangible products suc as call center that provides information to customers stranded on the highway or a hospital that treats accident victims in the emergency room.
Service process
it refers to processes that move information and material to and from the manufacturing and service processes of the firm.
Supply Chain
E.g. logistic processes, warehousing and storage processes
One or more activities that transform inputs into outputs
Process
consists of the processes needed to operate an existing supply chain strategically.
Developing a set of metrics to monitor the supply chain…
Planning
involves the selection of suppliers that will deliver the goods and services
needed to create the firm’s product.
e.g. receiving shipments, verifying, transfering them to manufacturing
Sourcing
is where the major product is produced or the service is provided.
Metrics that measure speeds, quality, workers productivity.
Making
Refers to logistic processes.
Carriers are picked to move
products to warehouses and customers…
Delivering
involves processes for receiving worn-out, defective, and excess products back from customers and support for customers who have problems with delivered products
Returning
When a firm builds service activities into its product offerings to create additional value for the customer.
E.g. service maintenance, training.
Product-service bundling
Doing something at lowest possible cost.
Efficiency
Doing the right things to create the most value for the customer
Effectiveness
The attractiveness of a product relative to its price or quality divided by price.
Value
When one company studies the processes of another company to identify best practices.
Benchmarking
Emphasizes how a factory’s capabilities could be used strategically to gain advantage over a competing company.
Manufacturing Strategy
An integrated set of activities designed to achieve high-volume production using minimal inventories of parts that arrive exactly when they are needed.
Pioneered by Japanese
Just-In-Time (JIT)
Aggressively seeks to eliminate causes of production defects.
Total Quality Control (TQC)
Term used to refer to the set of concepts relating to JIT and TQC.
Lean manufacturing
Managing the entire organization so that it excels on all dimensions of products and services that are important to the customer.
Total quality management (TQM)
An approach to improving business processes that seeks to make revolutionary changes as opposed to evolutionary (small) changes.
Business process reengineering (BPR)
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
Six Sigma
The ability to produce a unique product exactly to a particular customer’s requirements.
Mass customization
The use of the Internet as an essential element of business activity
Electronic Commerce
The ability to meet current resource needs without compromising the ability of future generations to meet their needs.
Sustainability
A business strategy that includes social, economic, and environmental criteria.
Triple bottom line
The use of current business data to solve business problems using mathematical analysis.
Business analytics
