Chapter 1 - Using Operations to Compete

Question 1

process

Answer 1

any activity or group of activities that takes one or more inputs, transforms them, and provides one or more outputs for its customers

Question 2

operation

Answer 2

a group of resources performing all or part of one or more processes

Question 3

supply chain

Answer 3

the interrelated series of processes within a firm and across different firms that produce a service or product to the satisfaction of customers

Question 4

supply chain management

Answer 4

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

Question 5

external customers

Answer 5

a customer who is either an end user or an intermediary buying the firm’s finished services or products

Question 6

intermediary

Answer 6

manufacturers, financial institutions, or retailers

Question 7

internal customers

Answer 7

one or more employees or processes that rely on inputs from other employees in order to perform their work

Question 8

external suppliers

Answer 8

the businesses or individuals who provide the resources, services, products and materials for the firm’s short term and long term needs

Question 9

internal suppliers

Answer 9

the employees or processes that supply important information or materials to a firm’s processes

Question 10

nested process

Answer 10

the concept of a process within a process

Question 11

characteristics of a manufacturing process (5)

Answer 11

physical, durable output
output can be inventoried
low customer contact
long response time
capital intensive
quality easily measured

Question 12

characteristics of a service product (5)

Answer 12

intangible, perishable output
output cannot be inventoried
high customer contact
short response time
labor intensive
quality not easily measured

Question 13

core process

Answer 13

a set of activities that delivers value to external customers

Question 14

supplier relationship process

Answer 14

a process that selects the suppliers of services, materials, and information and facilitates the timely and efficient flow of these items into the firm

Question 15

new service/product development process

Answer 15

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

Question 16

order fulfillment process

Answer 16

a process that includes the activities required to produce and deliver the service or product to the external customers

Question 17

customer relationship process

customer relationship management

Answer 17

a process that identifies, attracts, and builds relationships with external customers, and facilitates the placement of orders by customers

Question 18

support process

Answer 18

a process that provides vital resources and inputs to the core processes and therefore is essential to the management of the business

Question 19

operations strategy

Answer 19

the means by which operations implements the firm’s corporate strategy and helps to build a customer-driven firm

Question 20

corporate strategy

Answer 20

coordinates the firm’s overall goals with its core processes

Question 21

environmental scanning

Answer 21

the process by which managers monitor trends in the environment for potential opportunities or threats

Question 22

core competencies

Answer 22

the unique resources and strengths that an organization’s management considers when formulating strategy

Question 23

lead time

Answer 23

the elapsed time between the receipt of a customer order and filling it

Question 24

4 types of core competencies

Answer 24

workforce
facilities
market and financial knowhow
systems and technology

Question 25

4 types of market needs

Answer 25

service or product
delivery system
volume
other

Question 26

competitive priorities

Answer 26

the critical dimensions that a process of supply chain must possess to satisfy its internal or external customers, both now and in the future

Question 27

competitive capabilities

Answer 27

the cost, quality, time and flexibility dimensions that a process or supply chain actually possesses and is able to deliver

Question 28

time based competition

Answer 28

a strategy that focuses on the competitive priorities of delivery speed and development speed

Question 29

order winner

Answer 29

a criterion customers use to differentiate the services or products of one firm from those of another

Question 30

operations management

Answer 30

the systematic design, direction, and control of processes that transform inputs into services and products for internal as well as external customers

Question 31

order qualifier

Answer 31

minimal level required from a set of criteria for a firm to do business in a particular market segment

Question 32

productivity

Answer 32

the value of outputs (services and products) produced divided by the values of input resources (wages, costs of equipment, and so on)