M1ACh2 Flashcards
Product / service that meets niche market needs at a low cost. Responsiveness basis of competition.
Focus Low Cost
Product / service that appeals to many buyers. Customer and/or quality are bases for competitiveness.
broad differentiation
A strategy of making a product distinct from the competition on a nonprice basis such as availability, durability, quality, or reliability.
Modular design combined with postponement.
Base model with options to reduce risk of obsolescence.
Global track and trace tech to reduce counterfeits.
product differentiation
Operating model with short lead time extension, moderate production and carrying cost. Products are assembled to customer requirements
configure - to - order
Operating model with high production cost, low inventory cost, and low planning cost. Best for sporadic demand or wide configuration.
make - to - order
1) In accounting, the addition of direct labor, direct material, and allocated overhead assigned at an operation. It is the cost roll-up as a part goes through a manufacturing process to finished inventory. 2) In current manufacturing terms, the actual increase of utility from the viewpoint of the customer as a part is transformed from raw material to finished inventory; the contribution made by an operation or a plant to the final usefulness and value of a product, as seen by the customer. The objective is to eliminate all non-value-added activities in producing and providing a good or service.
value added
Operating model where production and inventory cost occurs after payment.
engineer-to-order
Best value at relatively low price. Cost and quality are bases for competition
best cost
Operating model with moderate production cost, low inventory and carrying cost. Best for moderate to high demand items with many options, like computers.
assemble to order
1) In production, the production of items at times required by a given schedule planned in advance. 2) In material control, the issuing of material according to a given schedule or issuing material to a job order at its start time. 3) In distribution, a system for replenishing field warehouse inventories where replenishment decision making is centralized, usually at the manufacturing site or central supply facility.
Walmart + P&G diaper supply chain.
push system
A statement of long-term strategy and revenue, cost, and profit objectives usually accompanied by budgets, a projected balance sheet, and a cash flow. how a company plans on achieving its long term objectives.
business plan
Business strategy that focuses on no-frills with low prices that are hard to match. (Dollar General)
low cost
Unique strategy for niche market to meet unique buyer needs. Niche marketing and innovation are bases for competition.
focused differentiation
1) In production, the production of items only as demanded for use to replace those taken for use. 2) In material control, the withdrawal of inventory as demanded by the using operations. Material is not issued until a signal comes from the user. 3) In distribution, a system for replenishing field warehouse inventories where replenishment decisions are made at the field warehouse itself, not at the central warehouse or plant. Based on sales information. No fixed production schedule.
pull system
A strategy that focuses on improving worldwide performance through the sales and marketing of common goods and services with minimum product variation by country. Its competitive advantage grows through selecting the best locations for operations in other countries. Variant of low cost. Benefits from economy of scale.
global strategy
