Supply Chain Test #1 (Book)

Innovation

both radical and incremental changes in process and products

Lean Operation

produces maximum levels of efficiency and effectiveness using a minimal amount of resources

Oder Winners

product traits that cause a customer to select one product over its competitors

Order Qualifiers

product traits that must be met at a certain level for the product to be considered by the customer; availability, price, conformance quality

Order Losers

product traits that, if not satisfied, cause the loss of either the current order or future orders

Fit

the extent to which there is alignment between the firm's operational capabilities, its value proposition, and the desires of its critical customers

Supply Chain

the global network of organizations and activities involved in designing, transforming, consuming and disposing of goods and services

Corporate Planning Strategic Business Unit Planning Functional Planning

the internal hierarchy of strategic plans; three levels of strategic planning

Operations Management

the management of processes used to design, supply, produce, and deliver valuable goods and services to customers

Supply Management

the management of processes used to identify, acquire, and administer inputs to the firm; purchasing, sourcing, and procurement

Customer Management

the management of the customer interface, including all aspects of order processing and fulfillment; distribution, sales, order fulfillment, customer service

Logistics Management

the management of the movement of materials and information within, into, and out of the firm; transportation/traffic management, warehousing, materials managers

Strategic Business Unit (SBU)

the semi-independent organizations used to manage different product and market segments

Core Capabilities

the skills, processes, and systems that are unique to the firm ad that enable it to deliver products that are both valued by the customer and difficult for competitors to imitate

Process-Related Competitive Priorities

Innovation Flexibility Sustainability Risk management

Product-Related Competitive Priorities

Quality Timeliness Cost

Net Profit Margin x Asset Turnover

ROA equation

Tier

an upstream stage of supply

Strategic Profit Model Balanced Scorecard Supply Chain Operational Reference Model

Three different measurement approaches frequently used in operations strategy

Execution Feedback/measurement

Two interrelated activities that make up strategy development

Value Proposition

a collection of product and service features that is both attractive to customers and different than competitors' offerings

Echelon

a downstream stage of supply or consumption

Supply Chain Operational Reference Model (SCOR)

a model for assessing, charting, and describing supply chain processes and their performance

Strategic Profit Model

a model that shows how operational changes affect the overall performance of a business unit; DuPont Model; focuses on ROA

Quality

a product's fitness for consumption in terms of meeting customers' needs and desires; often viewed as minimum requirements (order qualifiers)

Operations Strategy

a set of competitive priorities coupled with supply chain structural and infrastructural design choices intended to create capabilities that support a set of value propositions targeted to address the needs of critical customers

SWOT

a strategic planning technique to help firms identify opportunities where they can develop a sustainable competitive advantage and areas where the firm is significantly at risk

Process

a system of activities that uses resources to transform inputs into valuable outputs

Tactical Planning

a type of planning that addresses intermediate-term decisions to target aggregate product demands and to establish how operational capacities will be used to meet them; addresses months of activity

Strategic Planning

a type of planning that addresses long-term decisions that define the operations objectives and capabilities for the firm and its partners; decisions take a long time to implement

Operational Planning

a type of planning that establishes short-term priorities and schedules to guide operational resource allocations; addresses weeks or days of activity

Core Capability

a unique set of skills that confers competitive advantages to a firm, because rival firms cannot easily duplicate them

Value Proposition

all of the tangible and intangible "benefits" that customers can expect to obtain by using the products offered by the firm

Total Product Experience

all the goods and services that are combined to define a customer's complete consumption experience; includes all aspects of purchasing, consuming, and disposing of the product

Triple Bottom Line

an approach to corporate performance measurement that focuses on a company's total impact measured in terms of profit, people (social responsibility), and the planet (environmental responsibility)

Balanced Scorecard

an integrative approach for developing strategic, organizational-level metrics

Flexibility

an operation's ability to respond efficiently to changes in products, processes (including supply chain relationships), and competitive environments

Critical Customers

customers that have the greatest impact on product designs, sales, and future growth opportunities; often the consumer

Structural Decisions

decisions that affect physical resources such as capacity, facilities, technology, and the supply chain network; altering these decisions takes lots of time

Infrastructural Decisions

decisions that affect the workforce, production planning and control, process innovation, and organization

Business Unit Strategy

determines how a strategic business unit will compete

Functional Strategy

determines how the function will support the overall business strategy

Corporate Strategy

determines the overall mission of the firm and the types of businesses that the firm wants to be in

Risk Management

developing operations that anticipate and deal with problems resulting from natural events, social factors, economic issues, or technological issues

Financial Internal business processes Learning and growth Customer satisfaction

four categories for balanced scorecard

Stakeholders

groups of people who have a financial or other interest in the well-being of an operation; employees and unions, the local community, social groups, government, financial investors

Sustainability

maintaining operations that are both profitable and non-damaging to society or the environment

Capabilities

operational activities that the firm can perform well; these define the types of problems and solutions that operations can address proficiently

Suppliers

parties that provide inputs to operational processes

Customers

parties that use or consume the products of operations management processes

Resource and Technology suppliers

suppliers who provide equipment, labor, product and process designs, and other resources needed to support a firm's processes

Aftermarket Suppliers

suppliers who provide product service and support such as maintenance, repair, disposal, or recycling

Downstream product suppliers

suppliers who typically provide enhancements to finished goods such as assembly, packaging, storage, and transportation services

Upstream Product Suppliers

suppliers who typically provide raw materials, components, and services directly related to manufacturing or service production processes

Lead time

the amount of time that passes between the beginning and ending of a set of activities

Business Model

the combination of the choices determining the customers an SBU will target, the value propositions it will offer, and the supply chain/operations management capabilities it will employ

Critical Customer

the customer/customer segment receiving priority because it is critical to the firm's current or future success

Timeliness

the degree to which a product is delivered or available when the customer wants it

Supply Chain Management

the design and execution of relationships and flows that connect the parties and processes across a supply chain

Cost

the expenses incurred in acquiring and using a product

Customers, Suppliers, Stakeholders

the three important groups that are external to the firm with which operations managers interact

Order to Delivery Lead Time

the time that passes from the instant the customer places an order for a product until the instant that the customer receives the product; often how customers judge services and highly customized products

Time to Market

the total time that a firm takes to conceive, design, test, produce, and deliver a new or revised product for the marketplace

Critical Customer Value Proposition Capabilities

three primary areas of operations strategy

Internal, intermediate, final

three types of customers

First-tier

tier supplier who provides goods and services directly to a firm

Capabilities

unique and superior operational abilities that stem from the routines, skills, and processes that the firm develops and uses