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
