Exam 1 Flashcards
Total quality control
Aggressively seeks to eliminate causes of production defects
Total Quality Management
Managing the tenure organization so it excels in all dimensions of products and services important to the customer
Business process reengineering
An approach to improving business processes that seeks to make revolutionary changes as opposed to evolutionary (small) changes.
Mass customization
The ability to produce a unique product exactly to a particular customer’s requirements.
Electronic commerce
The use of the Internet as an essential element of business activity.
Business analytics
The use of current business data to solve business problems using mathematical analysis.
Internet of Things
A term that refers to the billions of devices that are connected to the Internet.
Order winners
One or more specific marketing-oriented dimensions that clearly differentiate a product from competing products.
Order qualifiers
Dimensions used to screen a product or service as a candidate for purchase.
How are operations used to “win”
customers and compete?
Order qualifiers and winners, competitive priorities, sustainable operations
Make-to-stock
A production environment where the customer is served “on-demand” from finished goods inventory.
Assemble-to-order
A production environment where preassembled components, subassemblies, and modules are put together in response to a specific customer order.
Make-to-order
A production environment where the product is built directly from raw materials and components in response to a specific customer order.
Service Package
A bundle of goods and services that is provided in some environment.
What is a “Process”?
Series of steps to transform inputs into outputs
Process choice determines
Cost structure (fixed vs. variable)
Strategic Capacity Planning
Finding the overall capacity level of capital-intensive resources to best support the firm’s long-term strategy.
Capacity
The output that a system is capable of achieving over a period of time.
Capacity utilization rate
Measure of how close the firm’s current output rate is to its best operating level (percent).
Economies of scale
Idea that as the plant gets larger and volume increases, the average cost per unit drops. At some point, the plant gets too large and cost per unit increases. BIGGER IS BETTER
Economies of scope
When multiple products can be produced at lower cost in combination than they can be separately.
Capacity cushion
Capacity in excess of expected demand.
How is capacity measured?
Output measures of capacity (product) and Input Measures of capacity (Service)
Diseconomies of scale
Bigger isn’t better (Complexities, Redundencies)
