Chapter 2 Definitions

Question 1

Flexibility

Answer 1

flexibility- an operational ability to respond efficiently to changes in products, processes( including supply chain relationships), and competitive environments.

Question 2

Sustainability

Answer 2

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

Question 3

Risk management

Answer 3

Developing operations that anticipate and deal with problems resulting from natural events, social factors, economic issues or technological issues.

Question 4

Triple bottom line

Answer 4

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.

Question 5

Operations strategy

Answer 5

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

Question 6

Corporate strategy

Answer 6

Determines the overall mission of the firm and the types of business that the firm wants to be in

Question 7

Strategic business unit (SBU)

Answer 7

The semi independent organisations used to manage different product and market segments

Question 8

Business unit strategy

Answer 8

Determines how a strategic business unit will compete

Question 9

Business model

Answer 9

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

Question 10

SWOT

Answer 10

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 11

Functional strategy

Answer 11

Determines how the function will support the overall business unit strategy

Question 12

Customer

Answer 12

Parties that use or consume the products of operations management processes

Question 13

Key customers

Answer 13

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

Question 14

Order winners

Answer 14

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

Question 15

Order qualifiers

Answer 15

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

Question 16

Order losers

Answer 16

Product traits that If not satisfied cause the loss of either the current order or future orders

Question 17

Value proposition

Answer 17

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

Question 18

Quality

Answer 18

A products fitness for consumption in terms of meeting the customers needs and desires

Question 19

Timeliness

Answer 19

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

Question 20

Lead time

Answer 20

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

Question 21

Time to market

Answer 21

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

Question 22

Order-to-deliver lead time

Answer 22

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

Question 23

Cost

Answer 23

The expenses incurred in acquiring and using a product

Question 24

Innovation

Answer 24

Both radical and incremental changes in processes and products

Question 25

Flexibility

Answer 25

An operation’s ability to reaping efficiently to changes in products, processes ( including supply chain relationships), and competitive environments.

Question 26

Sustainability

Answer 26

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

Question 27

Risk management

Answer 27

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

Question 28

Triple bottom line

Answer 28

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

Question 29

Capabilities

Answer 29

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

Question 30

Core capabilities

Answer 30

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 31

Fit

Answer 31

The extent to which there is alignment between the firms operational capabilities , its value proposition, and the desires of its critical customers

Question 32

Strategic profit model (SPM)

Answer 32

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

Question 33

Supply chain operational reference model (SCOR)

Answer 33

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