Chapter 2 Definitions Flashcards
Flexibility
flexibility- an operational ability to respond efficiently to changes in products, processes( including supply chain relationships), and competitive environments.
Sustainability
maintaining operations that are both profitable and non damaging to society or the environment.
Risk management
Developing operations that anticipate and deal with problems resulting from natural events, social factors, economic issues or technological issues.
Triple bottom line
An approach to corporate performance measurement that focuses on a company’s total impact measured in terms of profit, people ( social responsibility) , and the planet (environmental responsibility) also referred to as TBL, the 3BL or the 3 Ps.
Operations strategy
A set of competitive priorities coupled with supply chain structural ans infrastructural design choices intended to create capabilities that support a set of value propositions tragedy to address the needs of critical customers
Corporate strategy
Determines the overall mission of the firm and the types of business that the firm wants to be in
Strategic business unit (SBU)
The semi independent organisations used to manage different product and market segments
Business unit strategy
Determines how a strategic business unit will compete
Business model
The combination of the choices determining an SBU will target, the value proposition it will offer, and the supply chain/operations management capabilities it will employ
SWOT
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.
Functional strategy
Determines how the function will support the overall business unit strategy
Customer
Parties that use or consume the products of operations management processes
Key customers
A customer that the firm has targeted as being important to its future success
Order winners
Product traits that cause a customer to select one product over its competitors
Order qualifiers
Product traits that must be met at a certain level for the product to be considered by the customer
Order losers
Product traits that If not satisfied cause the loss of either the current order or future orders
Value proposition
A collection of product and service features that is both attractive to customers and different that competitors’ offerings
Quality
A products fitness for consumption in terms of meeting the customers needs and desires
Timeliness
The degree to which a product is delivered or available when the customer wants it
Lead time
The amount of time that passes between the beginning and ending of a set of activities
Time to market
The total time that a firm takes to conceive, design, test, produce, and deliver a new or revised product for marketplace
Order-to-deliver lead time
The time that passes from the instant the customer places an order for a product until the instant that th customer receives the product
Cost
The expenses incurred in acquiring and using a product
Innovation
Both radical and incremental changes in processes and products
Flexibility
An operation’s ability to reaping efficiently to changes in products, processes ( including supply chain relationships), and competitive environments.
Sustainability
Maintaining operations that are both profitable and non damaging to society or the environment
Risk management
Developing operations that anticipate and deal with problems resulting from natural events, social factors, economic issues, or technological issues
Triple bottom line
An approach to corporate performance measurement that focuses on a company’s total impact measured measured in terms of profit, people ( social responsibility), and the planet ( environmental responsibility). Also referred to as TBL, the 3BL, or the 3Ps
Capabilities
Unique and superior operational abilities that stem from the routines, skills, and processes that the firm develops and uses
Core capabilities
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
Fit
The extent to which there is alignment between the firms operational capabilities , its value proposition, and the desires of its critical customers
Strategic profit model (SPM)
A model that shows how operational changes affect the overall performance of a business unit
Supply chain operational reference model (SCOR)
A model for assessing, charting, and describing supply chain processes and their performance
