Chapter 2

Question 1

operations strategy

Answer 1

a set of competitive priorities coupled with supply chain structural and infrastructural design choices intended to create capabilities that support a set of value propositions targeted to address the needs of critical customers

Question 2

corporate strategy

Answer 2

determines the overall mission of the firm and the types of businesses that the firm wants to be in

Question 3

strategic business unit

Answer 3

the semi-independent organizations used to manage different product and market segments

Question 4

business unit strategy

Answer 4

determines how a strategic business unit will compete

Question 5

business model

Answer 5

the combo of the choices determining the customers an SBU will target, the value propositions it will offer, and the supply chain/operations management capabilities it will employ

Question 6

SWOT

Answer 6

a strategic planning technique to help firms identify opportunities where they can develop a sustainable competitive advantage and areas where the firm is significantly at risk

Question 7

functional strategy

Answer 7

determines how the function will support the overall business unit strategy

Question 8

customers

Answer 8

parties that use or consume the products of operations management processes

Question 9

critical customer

Answer 9

a customer that the firm has targeted as being important to its future success

Question 10

order winners

Answer 10

product traits that cause a customer to select one product over its competitors

Question 11

order qualifiers

Answer 11

product traits that must be met at a certain level for the product to be considered by the customer

Question 12

order losers

Answer 12

product traits that, if not satisfied, cause the loss of either the current order or future orders

Question 13

value proposition

Answer 13

a collection of product and service features that is both attractive to customers and different than competitors’ offerings

Question 14

quality

Answer 14

a product’s fitness for consumption in terms of meeting customers’ needs and desires

Question 15

timeliness

Answer 15

the degree to which a product is delivered or available when the customer wants it

Question 16

lead time

Answer 16

the amount of time that passes between the beginning and ending of a set of activities

Question 17

time to market

Answer 17

the total time that a firm takes to conceive, design, test, produce, and deliver a new or revised product for the marketplace

Question 18

order to deliver lead time

Answer 18

the time that passes from the instant the customer places an order for a product until the instant that the customer receives the product

Question 19

cost

Answer 19

the expenses incurred in acquiring and using a product

Question 20

innovation

Answer 20

both radical and incremental changes in process and products

Question 21

flexibility

Answer 21

an operation’s ability to respond efficiently to changes in products, processes, and competitive environments

Question 22

sustainability

Answer 22

maintaining operations that are both profitable and non damaging to society or the environment

Question 23

risk management

Answer 23

developing operations that anticipate and deal with problems resulting from natural events, social factors, economic issues, or tech issues

Question 24

triple bottom line

Answer 24

an approach to corporate performance measurement that focuses on a company’s total impact measured in terms of profit, people, and the planet

Question 25

capabilities

Answer 25

unique and superior operational abilities that stem from the routines, skills, and processes that the firm develops and uses

Question 26

core capabilities

Answer 26

the skills, processes, and systems that are unique to the firm and that enable it to deliver products that are both valued by the customer and difficult for competitors to imitate

Question 27

fit

Answer 27

the extent to which there is alignment between the firm’s operational capabilities, its value proposition, and desires of its critical customers

Question 28

strategic profit model

Answer 28

a model that shows how operational changes affect the overall performance of a business unit

Question 29

balanced scorecard

Answer 29

an integrative approach for developing strategic, organization-level metrics

Question 30

supply chain operational reference model

Answer 30

a model for assessing , charting and describing supply chain processes and their performance