OPM Strategy and Basic Definitions Flashcards
Operations Management (OPM)
The design, operation, and improvement of the systems that create and deliver the firm’s primary products and services.
Operations
A function or system that transforms inputs into output of greater value.
Value Chain
A series of activities from supplier to customer that add value to a product or service
Types of Transformational Processes
Physical – as in manufacturing Location – as in transportation Exchange – as in retailing Storage – as in warehousing Physiological – as in health care Psychological – as in entertainment Informational – as in telecommunications
Supply Chain Management (SCM)
Managing the flow of information, products, and services across a network of customers, enterprises, and suppliers.
Competitiveness (regarding countries)
The degree to which a nation can produce goods and services that meet the test of international markets.
Productivity
The ratio of output to input (Output/Input).
Strategy aspects
- How the mission is accomplished
- Unites an organization
- Provides consistency in decisions
- Keeps the organization moving in the right direction
Steps of Strategy Formulation
- Defining a primary task
- Assessing core competencies
- Determining order winners and order qualifiers
- Positioning the firm/organization
- Deploying the strategy
Order qualifiers
Characteristics that qualify a product or service to be considered for purchase by a customer.
Order winner
Characteristic that wins the order in a marketplace, the final factor in the purchasing decision.
Competency
What a firm does better than anyone else. Its distinctive competence.
