Exam 1 (ch 1, 2, 15) Flashcards
Operations Function
the collection of people, technology, and systems within an organization that has primary responsibility for providing products or services
supply chain
a network of manufacturers and service providers that work together to create products or services needed by end users. these manufacturers and service providers are linked together through physical flows, information flows, and monetary flows
operations management
the planning, scheduling, and control of activities that transform inputs into finished goods and services
upstream
a term used to describe activities or firms that are positioned earlier in the supply chain relative to some other activity or firm of interest.
ex. corn harvesting takes place upstream of cereal processing which is upstream of cereal packaging
downstream
a term used to describe activities or firms that are positioned later in the supply chain relative to some other activity or firm of interest.
ex. sewing a shirt takes place downstream of harvesting the coton
first tier supplier
a supplier that provides products or services directly to a firm
second tier supplier
a supplier that provides products or services to a firms first tier supplier
supply chain management
the active management of supply chain activities and relationships in order to maximize customer value and achieve a sustainable competitive advantage. it represents a conscious effort by a firm or group of firms to develop and run supply chains in the most effective and efficient ways possible
supply chain operations reference (SCOR) model
a framework developed and supported by the supply chain council that seeks to provide standard descriptions of the processes, relationships, and metrics that define supply chain management
electronic commerce
the use of computer and telecommunications technologies to conduct business via electronic transfer of data and documents
structural element
one of two major decision categories addressed by a strategy. includes tangible resources, such as buildings, equipment, and computer systems
infrastructural element
one of two major decision categories addressed by a strategy. includes the policies, people, decision rules, and organizational structure choices made by a firm
strategy
a mechanism by which a business coordinates its decisions regarding structural and infrastructural elements
mission statement
a statement that explains why an organization exists. it describes what is important to the organization, called its core values, and identifies the organizations domain
business strategy
the strategy that identifies a firms targeted customers and sets time frames and performance objectives for the business
core competency
an organizational strength or ability, developed over a long period, that customers find valuable and competitors find difficult or even impossible to copy
functional strategy
a strategy that translates a business strategy into specific actions for functional areas such as marketing, human resources, and finance. functional strategies should align with the overall business strategy and with each other
operations and supply chain strategy
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
value index
a measure that used the performance and importance sources 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
quality
the characteristics of a product or service that bear on its ability to satisfy stated or implied needs
performance quality
a subdimension of quality that addresses the basic operating characteristics of a product or service
conformance quality
a subdimension of quality that addresses whether a product was made or service performed to specifications
reliability quality
a subdimension of quality that addresses whether a product will work for a long time without failing or requiring maintenance
delivery speed
a performance dimension that refers to how quickly the operations or supply chain function can fulfil a need once it has been identified
delivery reliability
a performance dimension that refers to the ability to deliver products or services when promised
delivery window
the acceptable time range in which deliveries can be made
flexibility
a performance dimension that considers how quickly operations and supply chains can respond to the unique needs of customers
mix flexibility
the ability to produce a wide range of products or services
changeover flexability
the ability to provide a new product with minimal delay
volume flexability
the ability to produce whatever volume the customer needs
trade off
a decision by a firm to emphasize one performance dimension over another, based on the recognition that excellence on some dimensions may conflict with excellence on others
order winner
a performance dimension that differentiates a company’s products and services from its competitors. firms win a customers business by providing superior levels of performance on order winners
order qualifer
a performance dimension on which customers expect a minimum level of performance. superior performance on an order qualifier will not, by itself, give a company a competitive advantage
internally neutral
stage 1. management seeks only to minimize any negative potential in the operations and supply chain areas. There is no effort made to link these areas with the business strategy
externally neutral
stage 2. here industry practice is followed, based on the assumption that what works for competitors will work for the company. still, there is no effort made to link the operations and supply chain areas. There is no effort made to link these areas with the business strategy
internally supportive
stage 3. the operations and supply chain areas participate in the strategic debate. management recognizes that the operations and supply chain structural and infrastructural elements must be aligned with the business strategy
externally supportive
stage 4. the operations and supply areas do more than just support the business strategy. the business strategy actively seeks to exploit the core competencies found within these areas
product design
the characteristics or features of a product or service that determine its ability to meet the needs of the user
product development process
the overall process of strategy, organization, concept generation, product and marketing plan creation and evaluation, and commercialization of a new product
robust design
the design of products to be less sensitive to varations, including manufacturing variation and misuse, increasing the probability that they will perform as intended
testability
the ease with which critical components or functions can be tested during production
servicability
the ease with which parts can be replaced, serviced, or evaluated
engineering change
a revision to a drawing or design released by engineering to modify or correct a part
concept development phase
the first phase of a product development effort. here a company identifies ideas for new or revised products and services
planning phase
the second phase of a product development effort . here the company begins to address the feasibility of a product or service
design and development phase
the third phase of a product development effort. here the company starts to invest heavily in the development effort and builds and evaluates prototypes
commercial preparation phase
the fourth phase of a product development effort. at this stage, firms start to invest heavily in the operations and supply chain resources needed to support the new product or service
launch phase
the final phase of a product development effort. for physical products, this usually means “filling up” the supply chain with products. for services, it can mean making the service broadly available to the target marketplace
sequential development process
a process in which a product or service idea must clear specific hurdles before it can go on to the next development phase
concurrent engineering
an alternative to sequential development in which activities in different development stages are allowed to overlap with one another, thereby shortening the total development time
presourcing
the process of preapproving suppliers for specific commodities or parts
gray box design
a situation in which a supplier works with a customer to jointly design the product
black box design
a situation in which suppliers are provided with general requirements and are asked to fill in the technical specifications
DMADV
(define measure, analyze, design, verify)
a six sigma process that outlines the steps needed to create completely new business processes or products
quality function deployment (QFD)
a graphical tool used to help organizations move from vague notions of what customers want to specific engineering and operational requirements. also called the house of quality
computer aided design (CAC) system
an information system that allows engineers to develop, modify, share, and even test designs in a virtual world. CAD systems help organizations avoid the time and expense of paper-based drawings and physical prototypes
computer aided design / computer aided manufacturing (CAD/CAM) system
an extension of CAD. here CAD-based designs are translated into machine instructions, which are then fed automatically into computer-controlled manufacturing equipment
design for manufacturability (DFM)
the systematic consideration of manufacturing issues in the design and development process, facilitating the fabrication of the products components and their assembly into the overall product
parts standardization
the planned elimination of superficial, accidental, and deliberate differences between similar parts in the interest of reducing part and supplier proliferation
modular architecture
a product architecture in which each functional element maps into its own physical chunk. different chunks perform different functions; the interactions between the chunks are minimal, and they are generally well defined
design for maintainability (DFMt)
the systematic consideration of maintainability issues over a products projected life cycle in the design and development process
design for six sigma (DFSS)
an approach to product and process design which seeks to ensure that the organization is capable of providing products or services that meet six sigma quality levels - in general, no more than 3.4 defects per million opportunities
design for the environment (DFE)
an approach to new product design that addresses environmental, safety, and health issues over the products projected life cycle in the design and development process
target costing (or design to cost)
the process of designing a product to meet a specific cost objective. target costing involves setting the planned selling price and subtracting the desired profit, as well as marketing and distribution costs, thus leaving the required target cost.
value analysis (VA)
a process that involves examining all elements of a component, an assembly, an end product, or a service to make sure it fulfills its intended function at the lowest total cost
