Exam 1: Operation Management

What is process?

- A process is a method for getting work done - Consists of a series of steps that turn inputs into outputs

What is definition of Customer Relationship Process?

- Activities to enhance level of customer satisfaction before, during, and after a purchase. - Collection of activities performed in filling orders and keeping customers happy

Firm's Core Competency

- Distinguishes it from its competitors. - Unique expertise or skill set. - Successful firms make continuous improvements to their core competencies. - Blockbuster and Netflix are examples of unsuccessful and successful improvements of core competencies, respectively.

Neighborhood marketing

customers viewed as having similar income levels or ethnic traits

Niche segmentation

customers with similar needs, geographical locations, buying attitudes, or buying habits

What is sustainability in core competencies?

doing the right social and environmental things in ways that make economic sense

first-tier customers

extends to firm's most valued direct customers

What is triple bottom line in core competencies?

firm's efforts to provide social, environmental, and economic benefits to stakeholders

What is customer segmentation?

grouping customers so the company can design specific initiatives to satisfy the groups: Niche segmentation and Profitability segmentation. Segmentation by gender is common

economies of scale

when greater levels of output will reduce unit costs

Diseconomies of scale

when too much size and capacity lead to increases in unit costs

What is Post-transaction customer service elements?

activities that occur after the product or service has been sold

Service

any intangible product like repair of automobiles once they are sold.

Good

any tangible product like an automobile

What is dynamic in core competencies?

as customer tastes, competition, and technologies change, core competencies change

What is Transaction elements of customer service?

associated with and occur during the order cycle

Outsourcing

buying goods and services from suppliers instead of making them in-house

What is mission Statement?

provides direction for its strategic plan and should address

Basic operations activities

purchasing, storage, transformation, distribution, and product returns

first-tier suppliers

Begins with firm's primary goods and service suppliers

What is three competitive dimensions' firms use to compete?

Cost, Quality, and Customer Service

What is strategy choices?

Cost, Quality, and customer service

What is operation strategies?

Decisions made within the operations function to support the overall mission and strategy of the firm

Product design

Making decisions about the characteristics, features, and performance of a product

What is Supply Chain?

Network of companies making goods and services available to consumers, including enabling the purchasing, production, delivery, and recycling of materials, components, and end products.

Intermediate-range planning

Three months to one year.

What is core competencies?

Use Skill sets possessed by the firm that distinguish it from its competitors. Its dynamic, should be difficult to imitate, sustainability, and triple bottom line.

Supply Chain Management

integration of key business processes concerning the flow of materials from raw material suppliers to the final customer

When is Pre-transaction customer service elements occur?

it occur within the firm prior to, or apart from, the sale of goods and services

What is strategic planning?

process of determining a firm's long-term goals, plans, and policies.

Short-range planning

less than three months

Long-range planning

longer than one year

capacity

maximum number of units (or customers) the facility can produce (or serve) per period

Design Capacity

maximum sustainable output per period

Operations

set of activities associated with purchasing, making, delivering, and returning (or recycling) goods and services.

Operation Management (OM)

the effective planning, organizing, and controlling the many value-creating activities of the firm

Business process integration

the sharing and coordination of key processes between companies in a supply chain