Chapter 2 Flashcards
Value Chain Management
Business Process Reengineering
A management strategy that focuses on rethinking and redesigning workflows and business processes (the value chain) from the ground up to achieve dramatic performance improvements in cost, quality, speed and service.
Business Processes
A set of activates and tasks that once completed, accomplish an organization goal or add value to a product or service.
Contract Book
A written agreement that details product development factors such as responsibilities, resource commitments, budgets, time lines, and development timestones.
Core Members
The members of a team who bear primary responsibility for the success of a project and who stay with a project from inception to completion.
Customer Relationship Management (CRM)
A technique that uses IT to develop an ongoing relationship with customers to maximize the value an organization can deliver to them over time.
Facilities Layout
The strategy of designing the machine-worker interface to increase operating system efficiency.
Flexible Manufacturing
The set of techniques that attempt to reduce the costs associated with the product assembly process or the way services are delivered to customers.
Functional-level Strategy
A plan of action to improve the ability of each of an organization’s functions to perform its tasks-specific activities in ways that add value to it’s goods and services.
Incremental Product Innovation
The gradual improvement and refinement of existing products that occur over time as existing technologies are perfected.
Inventory
The stock of raw materials, inputs, and component parts that an organization has on hand at a particular time.
Just-in-time (JIT) Inventory System
A system in which parts or supplies arrive at an organization when they are needed, not before.
Needs Analysis
An analytical tool that synthesizes customer data from a variety of sources to determine what customers want a value.
Product Development Plan
A plan that specifies all the relevant information that managers need in order to decide whether to proceed with a full blown product development effort.
Quality
A standard of excellence or superiority in a product or service.
Quantum Product Innovation
The development of new, often radically different, kinds of goods and services because of fundamental shifts in technology brought about by pioneering discoveries.
Six Sigma
A technique used to improve quality by systematically improving how value chain activities are performed and then using statistical methods to measure the improvements.
Stage-gate Development Funnel
A planning model that forces managers to choose among competing projects so organization resources are not spread thinly over too many projects.
Total Quality Management (TQM)
A management technique that focus’s on improving the quality of an organization’s products and services.
Value Chain Management
The development of a set of functional level strategies that support a company’s business level strategy and strengthen its’s competitive advantage.
Value Chain
A coordinated series or sequence of functional activities necessary to transform inputs into finished goods or services that customers want to purchase.
Workflows
The automation of business processes by coordinating tasks between people and synchronizing data between systems.
Four ways to accomplish low cost strategy
- Achieve superior efficiency.
- Achieve superior quality.
- Achieve superior innovation, speed, and flexibility.
- Attain superior responsiveness to customers.
What is Value Chain made of?
- Product Development Function
- Marketing Function
- Materials Management Function
- Production Function
- Sales Function
- Customer Service Function
- Feedback Function
Three different methods for facilities layouts/arranging workstations
- Product layout : organized around machines. Car assembly lines notorious. Fixed sequence.
- Process Layout: workstations self contained. Provides flexibility but reduces efficiency.
- Fixed Position Layout: Products in fixed position. Component parts in remote stations, brought to production area. Often occupied by self managed teams.
