process design Flashcards
define process
a group of related tasks with specific inputs and outputs
define process strategy
organisations approach to producing goods
define process design
tasks to be done and how they are created
define process planning
where the design becomes instructions, standard operating procedure
example of vertical integration
oil companies are responsible for all vertical supplies e.g. raw materials, refining oils, transportation to stores then sales to customer
why is the overlap between design of service and process greater than design of product and process
the service is part of the process, it is all created at once
benefits of outsourcing
can be cheaper
business might not have capacity to produce appropriately
disadvantages of outsourcing
time/cost trade off
easier to control quality in house
protection of intellectual quality
dependability of supplier
what is a joint venture
equity partner e.g. when entering a new country, risk, resources and rewards are shared
what is strategic alliance
supplier is a long term partner, collaborative relationship
what is single contract
outsourcing, temporary
what is outsourcing
domestic supplier delivers
what is offshore outsourcing
overseas supplier delivers
what is domestic operations
company owns assets and performs activities themselves
what are offshore operations
overseas operations delivers products, company does not own assets
