Chapter 2 Flashcards
(30 cards)
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
corporate strategy
determines the overall mission of the firm and the types of businesses that the firm wants to be in
strategic business unit
the semi-independent organizations used to manage different product and market segments
business unit strategy
determines how a strategic business unit will compete
business model
the combo 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
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
functional strategy
determines how the function will support the overall business unit strategy
customers
parties that use or consume the products of operations management processes
critical customer
a customer that the firm has targeted as being important to its future success
order 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
order losers
product traits that, if not satisfied, cause the loss of either the current order or future orders
value proposition
a collection of product and service features that is both attractive to customers and different than competitors’ offerings
quality
a product’s fitness for consumption in terms of meeting customers’ needs and desires
timeliness
the degree to which a product is delivered or available when the customer wants it
lead time
the amount of time that passes between the beginning and ending of a set of activities
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
order to deliver 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
cost
the expenses incurred in acquiring and using a product
innovation
both radical and incremental changes in process and products
flexibility
an operation’s ability to respond efficiently to changes in products, processes, and competitive environments
sustainability
maintaining operations that are both profitable and non damaging to society or the environment
risk management
developing operations that anticipate and deal with problems resulting from natural events, social factors, economic issues, or tech issues
triple bottom line
an approach to corporate performance measurement that focuses on a company’s total impact measured in terms of profit, people, and the planet
