Chapter 9: Organizational Agility

Question 1

mechanistic organization

Answer 1

organization that seeks to maximize internal efficiency

Question 2

organic structure

Answer 2

organizational form that emphasizes flexibility

Question 3

core capability

Answer 3

knowledge, expertise, or skill that underlies a company’s ability to be a leader in providing a range of specific goods or services

Question 4

strategic alliance

Answer 4

formal relationship created with the purpose of joint pursuit of mutual goals

Question 5

learning organization

Answer 5

organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights

Question 6

high-involvement organization

Answer 6

top management ensures that there is a consensus about the direction in which the business is heading

Question 7

economies of scope

Answer 7

materials and processes employed in one product can be used to make other related products

Question 8

downsizing

Answer 8

planned elimination of positions or jobs

Question 9

rightsizing

Answer 9

arrival at the size at which the company performs most effectively

Question 10

survivor’s syndrome

Answer 10

loss of productivity and morale in employees who remain after downsizing

Question 11

CRM

Answer 11

customer relationship management; mediated by a set of technologies; focuses on creating two-way exchanges with customers so that firms have an intimate knowledge of their needs, wants and buying patterns.

Question 12

Kaizen

Answer 12

attaining and maintaining advantage by continuing to improve

Question 13

value chain

Answer 13

sequence of activities that flow from raw materials to the delivery of a good or service, with additional value created at each step

Question 14

TQM

Answer 14

total quality management; way of managing in which everyone is committed to continuous improvement of his or her part of the operation.

Question 15

14 Points of TQM

Answer 15

1. create constancy of purpose - strive for long-term improvement rather than short-term profit.
2. adopt the new philosophy - don’t tolerate delays and mistakes
3. cease dependence on mass inspection - build quality into the process on the front end
4. end the practice of awarding business on price tag alone - build long-term relationships
5. improve constantly and forever on the system of production and service - at each stage
6. institute training and retraining - continually update methods and thinking
7. institute leadership - provide the resources needed for effectiveness
8. drive out fear - people must believe it is safe to report problems or ask for help
9. break down barriers among departments - promote teamwork
10. eliminate slogans, exhortations, and arbitrary targets - supply methods, not buzzwords
11. eliminate numerical quotas - they are contrary to the idea of continuous improvement
12. remove barriers to pride in workmanship - allow autonomy and spontaneity
13. institute a vigorous program of education and retraining - people are assets, not commodities
14. take action to accomplish the transformation - provide a structure that enables quality

Question 16

Six Sigma Quality

Answer 16

method of systematically analyzing work processes to identify and eliminate virtually all causes of defects, standardizing the processes to reach the lowest practicable level of any cause of customer dissatisfaction.

Question 17

ISO 9001

Answer 17

series of quality standards developed by a committee working under the ISO to improve total quality in all businesses for the benefit of producers and consumers.

Question 18

technology

Answer 18

methods, processes, systems, and skills used to transform resources (inputs) into products (outputs)

Question 19

Small batches

Answer 19

goods or services provided in very low volume

Question 20

large batch

Answer 20

companies with higher volumes and lower varieties than a job shop; mass production technologies

Question 21

continuous process

Answer 21

very-high-volume end of the scale technologies that do not stop and start

Question 22

mass customization

Answer 22

production of varied, individually customized products at the low cost of standardized, mass-produced products

Question 23

CIM

Answer 23

computer integrated manufacturing; use of computer aided design and computer aided manufacturing to sequence and optimize a number of production processes

Question 24

flexible factories

Answer 24

manufacturing plants that have short production runs, are organized around products, and use decentralized scheduling

Question 25

lean manufacturing

Answer 25

operation that strives to achieve the highest possible productivity and total quality, cost-effectively, by eliminating unnecessary steps in the production process and continually striving for improvement.

Question 26

TBC

Answer 26

time based competition; refers to strategies aimed at reducing the total time needed to deliver the good or service

Question 27

logisitics

Answer 27

movement of resources into the organization and products from the organization to its customers

Question 28

JIT

Answer 28

Just-In-Time operations; system that calls for subassemblies and components to be manufactured in very small lots and delivered to the next stage of the production process just as they are needed.

Question 29

concurrent engineering

Answer 29

design approach in which all relevant functions cooperate jointly and continually in a maximum effort aimed at producing high-quality products that meet customers’ needs.

Question 30

reengineering

Answer 30

based around the idea of cutting costs by focusing on what the customer wants and how the Value Chain can be improved; not about making minor organizational changes here and there - about completely overhauling the operation in revolutionary ways to achieve the greatest possible benefits to the customer and to the organization