Chapter 1 - Using Operations to Compete Flashcards
process
any activity or group of activities that takes one or more inputs, transforms them, and provides one or more outputs for its customers
operation
a group of resources performing all or part of one or more processes
supply chain
the interrelated series of processes within a firm and across different firms that produce a service or product to the satisfaction of customers
supply chain management
the synchronization of a firm’s processes with those of its suppliers and customers to match the flow of materials, services, and information with customer demand
external customers
a customer who is either an end user or an intermediary buying the firm’s finished services or products
intermediary
manufacturers, financial institutions, or retailers
internal customers
one or more employees or processes that rely on inputs from other employees in order to perform their work
external suppliers
the businesses or individuals who provide the resources, services, products and materials for the firm’s short term and long term needs
internal suppliers
the employees or processes that supply important information or materials to a firm’s processes
nested process
the concept of a process within a process
characteristics of a manufacturing process (5)
physical, durable output output can be inventoried low customer contact long response time capital intensive quality easily measured
characteristics of a service product (5)
intangible, perishable output output cannot be inventoried high customer contact short response time labor intensive quality not easily measured
core process
a set of activities that delivers value to external customers
supplier relationship process
a process that selects the suppliers of services, materials, and information and facilitates the timely and efficient flow of these items into the firm
new service/product development process
a process that designs and develops new services or products from inputs resolved from external customer specifications or from the market in general through the customer relationship process
order fulfillment process
a process that includes the activities required to produce and deliver the service or product to the external customers
customer relationship process
customer relationship management
a process that identifies, attracts, and builds relationships with external customers, and facilitates the placement of orders by customers
support process
a process that provides vital resources and inputs to the core processes and therefore is essential to the management of the business
operations strategy
the means by which operations implements the firm’s corporate strategy and helps to build a customer-driven firm
corporate strategy
coordinates the firm’s overall goals with its core processes
environmental scanning
the process by which managers monitor trends in the environment for potential opportunities or threats
core competencies
the unique resources and strengths that an organization’s management considers when formulating strategy
lead time
the elapsed time between the receipt of a customer order and filling it
4 types of core competencies
workforce
facilities
market and financial knowhow
systems and technology
