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