Chapter 1: Using Operations to Create Value

Question 1

operations management

Answer 1

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

Question 2

process

Answer 2

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

Question 3

operation

Answer 3

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

Question 4

supply chain

Answer 4

an interrelated series of processes within and across firms that produces a service or product to the satisfaction of customers

Question 5

supply chain management

Answer 5

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 6

external customers

Answer 6

a customer who is either an end user or an intermediary (e.g., manufacturers, financial institutions, or retailers) buying the firm’s finished services or products.

Question 7

internal customers

Answer 7

one or more employees or processes that rely on inputs from other employees or processes 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 processes

Answer 10

the concept of a process within a process

Question 11

core process

Answer 11

a set of activites that delivers value to external customers

Question 12

supplier relationship process

Answer 12

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 13

service/product development process

Answer 13

a process that designs and develops new services or products from inputs received from external customer specifications or from the market in general through the customer relationship process

Question 14

order fulfillment process

Answer 14

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

Question 15

customer relationship process

Answer 15

a process that identifies, attracts, and builds relationships with external customers and facilitates the placement of orders by customers, sometimes referred to as customer relationship management

Question 16

support process

Answer 16

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

Question 17

supply chain processes

Answer 17

Business processes that have external customer value

Question 18

Operations strategy

Answer 18

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

Question 19

core competencies

Answer 19

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

Question 20

lead time

Answer 20

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

Question 21

competitive priorities

Answer 21

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

Question 22

competitive capabilities

Answer 22

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

Question 23

time-based competition

Answer 23

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

Question 24

order winner

Answer 24

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

Question 25

order qualifier

Answer 25

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

Question 26

productivity

Answer 26

The value of outputs (services and products) produced divided by the values of input resources (wages, costs of equipment, etc.).

Question 27

productivity equation

Answer 27

productivity = output / input

Question 28

Internet of Things (IoT)

Answer 28

The interconnectivity of objects, embedded with software, sensors, and actuators that enable these objects to collect and exchange data over a network without requiring human intervention