SCMA 320 - Test 1
capacity cushion
--- = 100% - Average Utilization rate (%)
utilization
--- = average output rate/maximum capacity x 100%
profit increase, % increase in sales
--- = new sales x profit margin; --- = new sales / original sales
risk
--- = probability x consequences
profit
--- = revenue - cost
process charts
--- activities are divided into 5 categories: operation, transportation, inspection, delay, and storage
inventory levels
--- affect the amount of capital available
ideas
--- are only half of the battle
quantity utility
--- can cause improper quantities leading to a supply chain disruption
lead times
--- can have an effect on which suppliers you use
operations
--- focus on a limited set of activities in order to achieve desired outcomes
strategy
--- implies an organization has made a decision to commit to a particular set of actions
buffering
--- is a common way to avoid risk
operations management
--- is a transformation process
operations management
--- is also referred to as the process of turning inputs into outputs
front office, back office
--- is associated with high interaction with customers and high customized services, and --- is associated with low interaction with customers and standardized services
operations management
--- is concerned with producing and delivering products and services
operations
--- is integrated with other business functions within the firm
outsourcing, suppliers
--- is paying suppliers and distributors to perform processes and provide needed services and materials, can leverage core competence of:
creating customer value
--- is the JESUS answer for everything concerning operations management
operations strategy
--- is the link between strategy and execution
strategy
--- is the overarching game plan
operations management
--- is the process of turning inputs into outputs
strategy
--- is the total pattern and must be aligned and consistent throughout the organization
operations management
--- is the value-creating function within the firm
services, manufacturing
--- jobs have seen a boom in the last decade, where --- jobs have been stagnant
flowcharts
--- map a process, document how inputs become outputs
supply chain
--- related processes are key for creating customer value
time utility
--- responds to the fact that customers are demanding things faster
efficient
--- supply chains are matched with functional products
responsive
--- supply chains are matched with innovative products
innovation
---: idea/invention + exploitation
low-cost
Aldi has a --- strategy
product layout
Chipotle and Subway represents this type of layout:
assemble-to-order
Chipotle, Subway, Five Guys, etc. are an example of this production strategy:
Innovation
Idea/(invention + exploitation)
information, innovation
Wal-Mart's core competency is --- and Apple's is ---
supply chain
a --- includes multiple firms, both upstream and downstream links, and delivers value to the ultimate consumer
cellular layout
a --- requires high skilled workers and are usually U shaped to allow workers to help each other
cellular layout
a combination of process and product layouts (labor/machines are grouped in cells according to families of parts with similar processing requirements)
product/service, marketing, operations
a competitive advantage derives from 3 things:
order winners
a criterion customers use to differentiate the services or products of one firm from those of another
loyalty index
a drop in the --- is not good for sustainability
trade-offs
a good operating strategy is based on ---
operation
a group of resources performing all or part of one or more processes
suppliers
a lot of companies are trying to leverage their --- to add value to their customers
job shop process
a manufacturing firm that produces products of a low volume via unique flows would be classified as which process?
batch process
a manufacturing firm that produces products of a moderate volume via disconnected flows would be classified as which process?
mass or "line" process
a process that has higher volumes than batch, standard/repeat products, and low and/or narrow skills represents which type of process? (e.g. assembly line)
mass customization
a strategy whereby a firm's highly divergent processes generate a wide variety of customized services or products at reasonably low costs
operations, marketing, logistics
a supply chain adds value to a product or service via ---, ---, and ---
next-shoring
a supply chain strategy that involves locating processes in close proximity to customer demand or product R&D
offshoring
a supply chain strategy that involves moving processes to another country
swim lane flowchart
a visual representation that groups functional areas responsible for different sub-processes into lanes
process choice
a way of structuring the process by organizing resources around the process or organizing them around the products
challenges for innovation
ability to protect intellectual and property technologies, incremental nature of innovation, degree of integration required, and ability to build prototypes or conduct tests in a controlled environment are:
50%
about --- of people are dumber than the average smart person
volume flexibility
accelerating or decelerating the rate of production of services or products quickly to handle large fluctuations in demand (ex: USPS)
enterprises
all types of --- have an operations function, even if it isn't called 'operations'
supply chain
an interrelated series of processes within and across firms that produces a service or product to the satisfaction of customers
supply chain
an interrelated series of processes within and across firms the produces a service or product to the satisfaction or customers
process charts
an organized way of documenting all the activities performed by a person or group, at a workstation, with a customer, or working with certain materials
process
any activity or group of activities that takes one or more inputs, transforms them, and provides on or more outputs for its customers
applied research
apply existing knowledge to problems in creation of new service
development
apply knowledge to problems to improve a current service
service line extensions
augmentation of existing service (e.g. new menu items)
product
batch processes, line processes, and continuous-flow are --- focused
fixed position
bring service to the customer (e.g. sit-down restaurant)
external
business processes that have --- customers or suppliers include: outsourcing, warehousing, sourcing, customer service, logistics, crossdocking
groups
cellular layouts have --- of machines that you go through
challenges for innovation
change acceptance (internally & externally), ambiguity of change, learning curves, and inertia are:
service improvements
changes in service delivery process (e.g. self-service boarding kiosk)
innovate
companies need to --- due to financial viability, financial stability, remaining competitive, and to keep making money
fixed position layout
construction (building airplanes) represents this type of layout:
structure a process
cost, quality, volume, flexibility, product variety, customization, and customer service determine how we should:
possession utility
created through the basic marketing activities related to the promotion and sale of products and services
servicescape
customer perceives something just by walking in defines a:
product layout
customers move from station to station within the facility (e.g. cafeteria or IKEA)
process layout
customers routed according to departments they require (e.g. hospital or regular department store)
low-cost operations
delivering a service or a product at the lowest possible cost (ex: Costco)
top quality
delivering an outstanding service (ex: Rolex)
quantity utility
delivering proper quantities of an item to where it is demanded when it is needed
labor
delivering services --- intensive
high, short
delivering services includes --- customer contact and a --- response time
intangible, perishable
delivering services includes --- or -- output
cannot
delivering services means output --- be inventoried
functional, innovative
demand is predictable and inventory is low for --- products, and unpredictable as well as high for --- products
innovation
demands for accountability, market changes, changes in customer expectations, economic changes, and technology foster the need for:
process layout
department stores (organized by function) represents this type of layout:
supply chain design
designing a firm's supply chain to meet the competitive priorities of the firm's operations strategy
plan within plants (PWPs)
different operations within a facility with individualized competitive priorities, processes, and workforces under the same roof
customer involvement
disruptiveness, difficult managing time and volume, difficult quality management, requirement of interpersonal skills, and multiple locations are disadvantages of:
add value, eliminated
each activity in a process should --- to the preceding activities; waste and unnecessary cost should be:
supply chain management
effective control of material, information, and financial flows
servicescape elements
environmental dimensions, holistic environment, psychological moderators, internal responses, and behavior are all:
agriculture
every economy starts with:
external, internal
every process and every person in the organization has --- and --- customers
external, internal
every process and every person in the organization relies on --- and --- suppliers
innovation
financial reasons, competition, life cycle shifts, value migration, regulations, and industry/community needs foster the need for:
internally
firms cannot just focus --- on improvement
strategic alignment
firms must examine -- by assessing whether choices in each decision area were consistent with the competitive priorities of the operations function and of the company as a whole
decision areas
firms must identify --- where management's choices can have a large impact on the deployment of operating resources (and thus on operating performance)
competitive priorities
firms should select suppliers to support the --- of the product or service they provide
designing and analyzing processes
flowcharts, service blueprints, and process charts are appropriate for:
porter's 5 forces
framework that attempts to analyze the level of competition within an industry and business strategy development through five forces that determine the competitive intensity and therefore attractiveness of an industry
increase
further division of labor can eventually --- labor time
variety
handling a wide assortment of services or products efficiently (ex: Amazon.com)
cellular layout
have multiple product layouts for customers to choose to enter (e.g. Chinese buffet)
flexibility
high customization requires ---, leaving you with high divergence (lots of paths to get from input to output)
flow
how the work progresses through the sequence of steps in a process
dynamic
if the operating environment is --- then the operational strategy must be continually monitored and evolve
subtracted, subtracted
if we decrease inventory costs by 5%, the amount of that 5% is applied to current assets (---) and total assets (---)
subtracted, added
if we decrease materials by 5%, the amount of that 5% is applied to COGS (---) and applied to net income (---)
benefits of technology
improvement of quality & productivity, disrupting businesses, re-shaping industries, altering reality (e.g. need for time/space), and changing roles (e.g. customers, employees) are:
Clark-Fisher
in the ---, primary services include: agriculture, mining, fishing, and forestry; secondary services include manufacturing and construction; tertiary services include services & support
customer involvement
increased net value to the customer, better quality/faster delivery/greater flexibility/lower cost, reduction in product/shipping/inventory costs, and coordination across the supply chain are advantages of:
challenges of technology
inertia, dynamism, difficult ROI, regression on the mean, and (implementation, integration, acceptance) are:
deal with risk
inventory, multiple sourcing, capacity, responsiveness, flexibility, pool or aggregate demand, and capability are all ways to:
responsive
lead time must be as short as possible for --- supply chains
risk
longer the distance, higher the supply chain's ---
low, long
manufacturing goods includes --- customer contact and a -- response time
physical, durable
manufacturing goods includes --- or --- output
capital
manufacturing goods is --- intensive
inventoried
manufacturing goods means output can be:
on-time delivery
meeting delivery-time promises (ex: UPS)
order qualifiers
minimum level required from a set of criteria for a firm to do business in a particular market segment
style changes
modest visible changes in appearances
operations
most --- produce both products and services
assembly line
most common type of product layout is the:
place utility
moving goods from production points to market points where demand exists
start-up business
new service for undeserved market
major innovation
new service that customers did not know they needed
new services for the market presently served
new services to customers of an organization
project-based process
one-off, complex, large scale, high work content 'products' where a product is specially made (e.g. high scale construction projects) represent this type of process:
internally consistent, strategically aligned
operations strategy must be first --- (decisions relating to one kind of resource must complement decisions about the other resources with which it interacts) and secondly --- (in sync with the business strategy so that the operating system is able to meet all of operations' performance objectives derived from the business strategy)
long-term
outsourcing is a --- strategy
competitive rivalry
porter's 5 forces models states that --- results from new entrants, substitutes, power buyers, and powerful suppliers
consistent quality
producing services or products that meet design specifications on a consistent basis (ex: McDonald's)
radical
products are --- if the way you consume them have changed
evolve
products can --- leading to new technologies
process
project and job processes are --- focused
corporate strategy
provides an overall direction that serves as the framework for carrying out all the organization's functions
basic research
pursue a planned search for a new knowledge regardless of possible application
winners, qualifiers
quality and cost are not always order --- anymore...they are often order ---
delivery speed
quickly filling a customer's order (ex: Netflix)
development speed
quickly introducing a new service or a product (ex: Zara)
disruptive technologies
radical innovations are based off of:
service blueprints
references used to train people
make-to-stock
retail stores are an example of this production strategy:
practices
routines that suppliers bring with them to address certain problems
increase
sales --- as you develop your order winner in relation to your achievement of competitive priority
level out
sales will --- when you hit the minimum threshold for customers (order qualifier in your achievement of competitive priority)
customization
satisfying the unique needs of each customer by changing service or product designs (ex: Ritz Carlton)
supply base management
seeks to maintain a fit between the needs of the buying organization and the capabilities of suppliers in an ever-changing environment
same principles
service layouts follow the --- as manufacturing layouts
customization
service level ranging from highly customized to standardized
intangible, perishable, simultaneous, heterogeneous, interactive
services are --- (defined by a process not a physical component), --- (unable to be stored), --- (consumed while being produced), --- (situationally unique), and --- (high customer involvement)
cost
some percent of revenue we spend to create sales
interrelated
strategy and tactics are ---
operations
structural processes, systems, and values of an individual firm
changes
successful firms can recognize --- and change their operating strategy accordingly
make-to-order
suit-tailoring is an example of this production strategy:
efficiency
supply chain --- (time to process an order) impacts order-cash cycle time
money
supply chain performance is usually measured by:
externally-driven, internally-driven, decision-driven
supply chain risk includes: --- (environmental), --- (process), --- (information)
increase sales, lower total cost
supply chains can --- on the top line, and --- on the bottom line (quality affects both)
continuity
supply chains must have resiliency in the face of unexpected disruptions to meet customer quality and availability needs
false
t/f: a higher degree of customer involvement in the delivery process always make a firm more productive
false
t/f: risk and uncertainty are synonymous
enabler, driver
tech is an --- not a --- for change
operating environment
the --- can change quickly
division of labor
the --- is a key consideration in line processes
layout
the --- of a facility must support process design for a process to be effective (the physical arrangement of operations (or departments) relative to each other)
cellular layout
the DMV and a Chinese buffet (have multiple product layouts for customers to enter) represent this type of layout:
capacity cushions
the amount of reserve capacity a process uses to handle sudden increases in demand or temporary losses of production capacity
longer
the chance of "something" happening increases as your supply chains get:
competitive capabilities
the cost, quality, time, and flexibility dimensions that a process or supply chain actually possesses and is able to deliver
competitive priorities
the criticial dimensions that a process or supply chain must process to satisfy its internal or external customers, both now and in the future
time utility
the economic value added to a good or service by having a demand point at a specific time when it is needed
supply chain integration
the effective coordination of supply chain processes through the seamless flow of information up and down the supply chain
customer contact
the extent to which the customer is present, is actively involved, and receives personal attention during the service process
process divergence
the extent to which the process is highly customized with considerable latitude as to how its tasks are performed
process reengineering
the fundamental rethinking and radical redesign of processes to improve performance dramatically in terms of cost, quality, service, and speed
capacity
the maximum rate of output of a process or a system
operations strategy
the means by which operations implements the firm's corporate strategy and helps to build a customer-driven firm
design, analysis, development, full launch
the new service/product development process steps are (1) --- (2) --- (3) --- (4) ---
make money
the operational goal of an organization is to:
strategic outcomes
the outcomes that the supplier base is expected to contribute to
process strategy
the pattern of decisions made in managing processes so that they will achieve their competitive priorities
bullwhip effect
the phenomenon in supply chains whereby ordering patterns experience increasing variance as you proceed upstream (back and back) in the supply chain
risk
the precise probability of specific outcomes
focused factories
the result of a firm's splitting large plants that produced all the company's products into several specialized smaller plants
supply chain management
the synchronization of a firm's processes with those of its suppliers and customers to match the flow of materials, services, and information with customer demand
operations management
the systematic design, direction, and control of processes that transforms inputs into services and products for internal, as well as external, customers
responsive
there is more capacity for --- supply chains
suppliers
to do mass customization, you have to rely on:
input measures
use -- when the firm uses low-volume, flexible processes
output measures
use --- when the firm uses high volume, standardized processes
form utility
value added to goods through a manufacturing or assembly process
services are easy to copy
what differentiates services and manufacturers in terms of innovations?
competitive priority
what is NOT a driving force behind a firm's innovation pursuits?
co-production
what role the customer will play
order loser
when customers got sick for eating at Chipotle, this was an --- for them
not easily
when delivering services, quality is --- measured
easily
when manufacturing goods, quality is --- measured
continuous process
which process has extremely high volumes and low variety and is often the same product all the time with minimal shut down times during the year?
responsive
with increasing flexibility, you need a more --- supply chain
efficient
with increasing volume, you need a more --- supply chain
