Chapter 2

Question 1

Top-down perspective:

Answer 1

What the organization wants to achieve with operations, orthodox perspective, operation strategy.

Question 2

Resources perspective:

Answer 2

The role of operations resources, operations strategy.

Question 3

Bottom-up perspective:

Answer 3

What day to day activities should you do, smaller scope, managers of strategic business units, operations strategy.

Question 4

Market requirements:

Answer 4

How can operations improve market position, operations strategy.

Question 5

Operations strategy must consider:

Answer 5

What the long-term goal is, operational capabilities, and resources needed.

Question 6

Strategic questions:

Answer 6

Corporate—what businesses should we be in.
Business—how do we compete.
Functional—how do we best support the SBU strategy.

Question 7

Corporate strategy:

Answer 7

Long time horizon, overall values direction and goals, metrics, acquisitions.

Question 8

Strategic business units SBU:

Answer 8

Semi-independent organization apart of an organization for different products or markets.

Question 9

Developing an operation strategy:

Answer 9

Value at the center, and surrounded by value proposition, key customers, and capabilities.

Question 10

Capabilities:

Answer 10

What a firm does well, defines types of problems a firm can proficiently address.

Question 11

Key customer:

Answer 11

Critical to firm’s success and receives firms focus.

Question 12

Key customers– customer needs assessment:

Answer 12

Order winner—why customers choose your firm.
Order qualifier—minimum standard to be met.
Order losers—why customers avoid your firm.

Question 13

Characteristics of a well-designed value proposition:

Answer 13

1. Features customers will pay for.
2. Differentiates from competitors, that is difficult to imitate.
3. Satisfies financial and strategic firm objectives.
4. Reliably delivered using the firms capabilities and supply chain.
5. Consistent with the firms social and core values.

Question 14

Product related competitive priorities:

Answer 14

Quality—fitness for consumption in terms of meeting customer needs and desires.
Timeliness—delivery or availability when customer wants.
Cost—expenses incurred in acquiring or using the product.

Question 15

Product related competitive priorities:

Answer 15

How customers problem is solved communicated in terms of the quality, timeliness, and cost of the product solution.

Question 16

Competitive priorities timeliness:

Answer 16

Lead time—amount of time it takes to begin and end of a set of activities.
Time to market lead time—total time it takes for a firm to conceive, design, test, produce, and deliver a new or revised product.
Order-to-delivery lead time—time it takes from the instant the customer orders a product until customer receives product.

Question 17

Process-related commutive priorities:

Answer 17

Innovation and flexibility—how the firms supply chain operations run over time.
Innovation—radical and incremental changes in products and processes.
Flexibility—ability to respond to changes in products, processes, and market.

Question 18

Process related competitive priorities:

Answer 18

Risk management—anticipating and dealing with unexpected events.

Question 19

Process related competitive priorities:

Answer 19

Sustainability—maintaining operations that are profitable and non-damaging to society or the environment.
Triple bottom line—corporate performance measurement that focuses on a firms overall impact measured in terms of profit people and the planet.
Environmental, social, and governance ESG– a set of standards that socially conscious investors can use to evaluate the performance of organizations.

Question 20

Capabilities defined:

Answer 20

Unique and superior abilities based upon the firms routines, skills and processes.
Core capabilities—enable firm to meet customer expectations and are difficult for competitors to imitate.

Question 21

Operations strategy development:

Answer 21

Execution—carry out plans and initiatives in order to deliver the realized value to customers.
Feedback/measurement–assess, communicate, and manage performance in ways that capture lessons learned and focus attention on areas needing improvement.

Question 22

Capacity structure:

Answer 22

Amount timing, type, involved finance and marketing.

Question 23

Strategic areas in operations management infrastructure:

Answer 23

Workforce, production planning and control, product/process innovation, organization and management.