Material for Exam 1 Flashcards
product design
charting the detailed steps required to produce a product
define operations management
science of ensuring that goods and services are created and delivered successfully to customers.
Inventory management
inventory is tightly controlled to keep cost down and to avoid production that isn’t needed
Scheduling
production schedules are created to ensure that enough product is available for both retail and wholesale consumers.
Quality Management
Each product or service is judged based on standards of excellence determined by the company or industry
What is a good?
It is a physical product that you can see, touch or possibly consume.
define durable good
one that does not quickly wear out and typically lasts at least 3 years
nondurable good
one that is no longer useful once it’s used or lasts for less than three years
what are some examples of nondurable goods?
toothpaste, software, clothing, shoes, and food
what are some examples of durable goods?
vehicles, machines, furniture, etc.
what is a service?
any primary or complementary activity that does not directly produce a physical product
define service encounter
interaction between the customer and the service provider
what is a “moment of truth”?
any episodes, transactions, or experiences in which a customer comes into contact with any aspect of the delivery system and forms an impression
define service management
integrates marketing human resources, and operations functions to plan, create, and deliver goods and services and their associated service encounters
define customer benefit package
a clearly defined set of tangible and intangible features that the customer recognizes, pays for, uses or experiences
define peripheral goods or services
those services that are not essential to the primary good or service, but enhance it
define variant
is a customer benefit package that departs from the standard and is normally location or firm specific
what is an example of a peripheral good?
replacement parts for a vehicle
define process
sequence of activities that is intended to create a certain result
what are the three main processes?
value creation processes
support processes
general management processes
define value creation process
focused on producing or delivering an organization’s primary goods or services
define support process
purchasing materials, supplies for manufacturing. managing inventory, installation, benefits, day care etc.
define general management processes
accounting, IT, HR, marketing, etc.
define environmental sustainability
an organizations commitment to the long-term quality of our environment
define social responsibility
an organizations commitment to maintain healthy communities and a society that improves quality of life
define economic sustainability
an organizations commitment to address current business needs and economic vitality, and to prepare for the future
what are some examples of economic sustainability?
performance excellence, financial management, resource management, emergency preparedness, etc.
define value chain
a network of facilities and processes that describes the flow of materials, finished goods, services, information, and financial transactions from suppliers, through the facilities and processes that create goods, services, and those that deliver them to the customer
define supply chain
the portion of the value chain that focuses primarily on the physical movement of goods and materials, and supporting flows of information and financial transactions through the supply, production, and distribution process.
define value
perception of benefits associated with a good, service, or a bundle of goods or services in relation to what buyers are willing to pay for them
formula for value
value=perceived benefits/price (cost) to the customer
define value proposition
a competitively dominant customer experience
define operational structure
configuration of resources such as suppliers, factories, warehouses, distributors, technical support centers, engineering design, and sales offices, and communication links
define vertical integration
refers to the process of acquiring and consolidating elements of a value chain to achieve more control
define backward integration
refers to acquiring capabilities toward suppliers
define forward integration
refers to acquiring capabilities toward distribution or even customers
define outsourcing
the process of having suppliers provide goods and services that were previously provided internally
define value chain integration
process of managing information, physical goods, and services to ensure their availability at the right place at the right time, at the right cost, at the right quantity, and with the highest attention to quality
offshoring
building, acquiring, or moving of process capabilities from a domestic location to another country location while maintaining ownership and control
multinational enterprise
an organization that sources, markets and produces its goods and services in several countries to minimize costs, and to maximize profit, customer satisfaction, and social welfare
define customer-satisfaction measurement system
provides a company with customer ratings of specific goods and service features and indicates the relationship between those ratings and the customer’s likely future buying behavior
define quality
measures the degree to which the output of a process meets customer requirements
define goods quality
relates to the physical performance and characteristics of a good
define service quality
consistently meeting or exceeding customer expectations and service delivery system performance for all service encounters
define service failure
errors in service creation and delivery
define flexibility
the ability to adapt quickly and effectively to changing requirements
goods and service design flexibility
ability to develop a wide range of customized goods or services to meet different or changing customer needs
volume flexibility
ability to respond quickly to changes in the volume and type of demand
innovation
refers to the ability to create new and unique goods and services that delight customers and create competitive advantage
learning
refers to creating, acquiring, and transferring knowledge, and modifying the behavior of employees in response to internal and external change
Triple bottom line
refers to the measurement of environmental, social, and economic sustainability
productivity
ratio of output of a process to the input
interlinking
quantitative modeling of cause-and-effect relationships between external and internal performance
value of a loyal customer
quantifies the total revenue or profit each target market customer generates over the buyer’s life cycle
actionable measures
provide the basis for decisions at the level at which they are applied
measuring supplier performance is critical to managing a what?
value chain
forecasting
process of projecting the values of one or more variables into the future
planning horizon
length of time on which a forecast is based
time bucket
unit of measure for the time period used in a forecast
time series
set of observations measured at successive points in time or over successive periods of time
trend
the underlying pattern of growth or decline in a time series
seasonal patterns
characterized by repeatable periods of ups and downs over short periods of time
cyclical patterns
regular patterns in a data series that take place over long periods of time
random variation
unexplained variation deviation of a time series from a predictable pattern, such as a trend, seasonal, or cyclical pattern
irregular variation
one-time variation that is explainable
forecast error
is the difference between the observed value of the time series and the forecast
statistical forecasting
based on the assumption that the future will be an extrapolaton of the past
moving average forecast
average of the most recent “k” observations
single exponential smoothing
forecasting technique that uses a weighted average of past time series values to forecast the value of the time series in the next period
regression analysis
method for building a statistical model that defines a relationship between a single dependent variable and one or more independent variables all of which are numerical
multiple linear regression model
has more than one independent variables
judgmental forecasting
relies upon opinions and expertise of people in developing forecasts
grass roots forecasting
asking those who are close to the customer, such as sales people about the customers purchasing plans
delphi method
forecasting by expert opinion by gathering judgments and opinions of key personnel based on their experience and knowledge of the situation
