Chapter 2 Flashcards
Tangible resources such as buildings, equipment, and computer systems
Structural element
The people, policies, decisions rules and organization structure choices made by a firm
Infrastructural element
A mechanism by which a business coordinates its decisions regarding structural and infrastructural elements (the overarching goal of the business)
Strategy
A statement that explains why an organization exists. It describes what is important to the organization, called its core values, and it identifies the organization’s domain
Mission statement
The strategy that identifies a firm’s targeted customers and sets time frames and performance objectives for the business
Business strategy
An organizational strength or ability, developed over a long period that customers find valuable and competitors find difficult or even impossible to copy
Core competency
A strategy that translates a specific business strategy into specific actions for functional areas such as marketing, HR, and finance. Functional strategies should align with the overall business strategy and with each other
Functional strategy
Top Down Model of Strategy
Mission Statement
Business Strategy
Operations and SC Strategies
Other functional strategies
A functional strategy that indicates how structural and infrastructural elements within the operations and supply chain areas will be acquired and developed to support the overall business strategy
Operations and Supply Chain Strategy
A measure that uses the performance and importance scores for various dimensions of performance for an item or a service to calculate a score that indicates the overall value of an item or a service to a customer
Value index
Performance Dimensions (4/5)
Quality
Time
Flexibility
Speed (Cost-in book)
A firm can’t be best at
All performance dimensions
Value index calculation
Importance of dimension x performance with regard to dimension
When making a selection with value index you want to
Choose the higher value index
The characteristic of a product or service that bear on its ability to satisfy stated or implied needs
Quality
Three types of quality
Performance
Conformance
Reliability
Addresses the basic operating characteristics of a product or service (what are we looking to get out of it) -what are the basic operating characteristics of the product or service?)
Performance quality
Addresses whether a product was made or a service performed the specifications (standards of how product should be built/ perform)- was the product made or the service performed to specifications
Conformance quality
Addresses whether a product will work for a long time without failing or requiring maintenance (if the battery is supposed to last 24 hours, did it do that?)
Reliability quality
Three subcategories of time
Delivery speed
Delivery reliability
Delivery window
Refers to how quickly the operations or supply chain function can fulfill a need once it has been identified (how fast can we get it)
Delivery speed
Refers to the ability to deliver products or services when promised (how consistent are we with delivery)
Delivery reliability
The acceptable time range in which deliveries can be made (did the thing/person actually show up in the scheduled time frame)
Delivery window
Three types of flexibility
Mix
Changeover
Volume
