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Flashcards in Chapter 12 Deck (23)
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efficient frontier

provide the exact service the customer wants at minimal cost


activities to plan for in supply chain

purchasing for profitability
reducing inventories
tighter supplier integration
more frequent and smaller customer orders and receipts
faster time from source to stock in the wholesale or retail outlet


production process

inputs (raw materials, labor, machinery, facility) --> transformation (materials management, production scheduling, manufacturing, assemble, quality control, packaging) --> output (new products and services)


quality management programs

continuous improvement
failure mode and effects analysis
total quality improvements
six sigma



involves the use of criteria or standards that can be employed to compare one company with another to better understand organizational performance


continuous improvement

a program that focusses on undertaking incremental improvements in processes to increase customer satisfaction


failure mode and effects analysis

a way to identify and rank potential equipment and process failures



an internationally recognized quality set of standards with a certification process


total quality improvement

a set of management practices designed to meet customer requirements through process measurement and controls


six sigma

a data-driven approach to eliminating defects with a goal of 3.4 defects per million;
relies on statistical tools and specific processes to achieve the measurable goals of fewer defects, increased productivity, reduced waste, and superior products and processes


Should you outsource?

have you exhausted all possibilities at home?
are you able to meet with your partner in person?
do you have the time and willingness to do this?
have you done due diligence on potential partners?
do you have connections overseas?
is everyone on board with the plan?


supply chain

consists of business activities that move a product through the stages of designing, making, sourcing and delivering to the customer


value chain

a cooperative effort among the participants to add value at each point in the chain, creating benefits for all



stocks of items supporting production, associated activities, customer service


Quality control

the process of reconciling product or project output with the standards set for that product or project; best for certain customer requirements



the management and control of the flow of goods and resources from the source of production to the marketplace


cell manufacturing

one unit at a time serially; product moves from raw materials through a series of tasks and processes in a continuous flow to complete the product while remaining inside the manufacturing cell; benefits: reduced lead times, improved costs, quality, and timing in addition to giving employees more involvement in the production of the entire product rather than simply one component


product/project focused organizations

highly decentralized or distributed so that they can respond better to market demands; each product or project group acts essentially as a separate company or profit center; well-suited to products and projects that don't require huge economies of scale or capital-intensive technologies


process-focused organizations

common among manufacturers with capital intensive processes (ex: semiconductor industry) and among service companies; highly centralized in order to control all the functions of the organization


management processes

source of strategic direction and organizational governance, so they usually affect or shape all the other processes of the business


business processes

"mission-critical" processes and generally relate to the core competencies of the company, such as manufacturing, distribution, and product development; critical because they are typically viewed by the customer and include marketing, fulfillment, and service


support processes

common functions in any business; include payroll and human resources management and are viewed by the internal stakeholders of the company--employees


lean manufacturing

views manufacturing from the customer's perspective