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MGT 3501-Ops > Exam 1 > Flashcards

Exam 1 Flashcards

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1
Q

the three competitive strategies

A

cost leadership, differentiation, and combination

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2
Q

the holy grail of operations

A

short lead time/on time, low cost, high performance/quality

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3
Q

order qualifiers

A

minimum level of service to be considered by the consumer; base level of features and functions

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4
Q

order winners

A

criteria that is most important to customers at the time of purchase (may vary at different times and from customer to customer); the features that win you a customer

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5
Q

order losers

A

failure to deliver the expected level of criteria can result in a customer being lost forever (dependability, personalization, and speed are particularly vulnerable)

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6
Q

the goal directed actions a firm intends to take in its quest to gain and sustain a competitive advantage

A

strategy

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7
Q

cost leader

A

supply product or service for the cheapest; emphasis on using tech to drive down operational costs; simple and standard product designs

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8
Q

differentiation

A

offer product that has functions and features no one else has (deliver quicker or keep your promises); unique product that allows a firm to charge a premium price

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9
Q

combination

A

a combination between cost leader and differentiation; will not last; stuck and difficult to grow

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10
Q

markets to compete in

A

broad or narrow

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11
Q

broad market

A

everyone is a potential customer

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12
Q

narrow market

A

small segment of the population

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13
Q

why not always choose a broad market

A

limited resources of time, money, and people; want to be efficient in our marketing

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14
Q

productivity

A

ratio of outputs to inputs in a production process; ship more products out the door using less materials and less manpower

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15
Q

what is operations management

A

turning sales into profit; creating profit

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16
Q

what makes operations difficult

A

lots of gray areas in decision making; IT DEPENDS

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17
Q

to be successful the firm must ____, ____, ____

A
  1. decide on a competitive strategy 2. understand order qualifier and order winner criterion 3. position themselves to be better than their competitors
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18
Q

four growth strategies

A

concentration, vertical integration, horizontal integration, and diversification

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19
Q

concentration

A

focus on the firm’s core business and increase the number of products or services served

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20
Q

vertical integration

A

buy out suppliers or distributors

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21
Q

horizontal integration

A

buy out competitors

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22
Q

diversification

A

grow by getting into different industries (reduces risk)

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23
Q

why vertical integration?

A

total control over costs and quality and supplies, profits in house

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24
Q

why horizontal integration

A

instantly gaining market share, increase economies of scale, reduce competition

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25
what is the big thing to remember about productivity
productivity measures are RELATIVE so they have to be compared to something else
26
productivity =
total output/total input
27
how can you compare the productivity of two very different size companies
look at costs as a % of revenue
28
product development
the process beginning with the perception of a market opportunity and ending with the production, sale, and delivery of the product
29
successful product development determines ______ in the future
competitive positioning
30
without ______ the firm will not survive
innovating products and processes
31
changes over time
customer expectations (phone example)
32
innovation involves _______ with periods of _____
incremental improvements; radical innovation
33
radical innovation
disruption
34
incremental improvements
evolution
35
Why do a lot of product designs fail?
quality, inability to scale, timing, marketing message
36
apple vs. rio
rio did not have the infrastructure to legally get mp3s
37
how important is VoC or voice of the customer in product design
customers give great ideas for incremental improvements but not radical innovation
38
comcast example
customer service was terrible so listened to customers and fixed it; could possibly be out of business if they didn't do this; but focusing too much on the customer made them miss the disruption of streaming
39
product design hits that people didn't think would work
ring doorbell and post it notes
40
product misses
hershey could have bought mars candy; coke had three chances to buy a bankrupt Pepsi; Netflix tried to sell themselves to blockbuster
41
5 things to think about when prioritizing which product designs should move forward
urgency, market size, profit potential, cost, timing
42
most common financial tool to estimate the profit potential and cost requirements
net present value
43
positive net present value indicates
the projected earnings generated exceed the anticipated costs so move forward with the project
44
a _______ shows an optimistic, pessimistic, and most likely scenario
sensitivity analysis
45
most successful businesses that last understand what
what business they are truly in
46
BIG NO NO
do not let your product define your business (transatlantic steamers disrupted by planes because they were in the transatlantic shipping business not the people and good moving business)
47
its important to ______ fast in product design
fail
48
product development is a ______ process
iterative (two steps forward, one step back)
49
planning is great but you must be
flexible
50
scenario planning
what are all the possible scenarios and let me come up with a plan for each
51
first mover advantage is
a little bit of a myth
52
second mover advantage
look at everyone else's mistakes and do it better (apply not first ipod)
53
process
a series of independent tasks that transform an input into an output that is of higher value to the org
54
why do we need to analyze processes
1. to identify inefficient tasks 2. to identify ineffective tasks 3. to understand where value can be added
55
what do you do with inefficient tasks
fix them
56
what do you do with ineffective tasks
scrap them
57
______ can provide enormous value to a company
process improvements
58
what is more important? 1 million in sales or half a million in savings
the savings because it happens every time you do a process and it goes straight to your bottom line; a dollar of savings is a dollar of profit
59
cycle time
time required to complete a function, job, or task form start to finish (time from a unit starting production to it being finished)
60
utilization
the proportion of available time that a piece of equipment or system is operating (want this high but not 100%)
61
the use of a diagram to present the major elements of a process
process flowcharting
62
what is the first step in analyzing a process
flow chart it! or draw it out
63
WIP
work in process; material that has been removed from inventory, put into the production process, but not yet finished or shipped
64
finished goods inventory
material that has been removed from inventory, finished the production process, but not yet shipped
65
buffer
a storage area between stages where the output of one stage is placed prior to being used in a downstream stage
66
starving
occurs when the activities in a stage must stop because there is no material to work on
67
bottleneck
stage in the process that limits the performance or capacity of the entire system
68
what do you fix first
THE BOTTLENECK
69
throughput rate
the number of units going through a process per unit time
70
what does flowcharting allow you to do
visually allows you to analyze a process, identify bottlenecks, redundant tasks, series/parallel tasks, and determine system capacity
71
good for cross functional processes
swim lane flow charts
72
good for analyzing process statistics
flow diagram
73
the entire process can never go faster than the
bottleneck
74
steps for analyzing a process
1. map out the process step by step 2. gather the facts from all perspectives 3. determined the designed output of each step 4. compare designed output vs. actual output 5. identify the bottleneck in the process 6. calculate the financial impact of the bottleneck 7. remedy the bottleneck, reevaluate, and find new bottleneck
75
ways to implement a new process
1. create the urgency 2. form a coalition 3. answer "why do we need to change?" 4. answer what's in it for me 5. communicate 6. remove obstacles 7. create small wins 8. reevaluate and improve 9. anchor it in place
76
successful companies tend to focus on
gaining more customers to gain more profit
77
failing companies tend to focus on
improving processes to cut costs
78
make to order vs. make to stock
important distinction (make to stock-order at end) (make to order-order at beg)
79
cycle time =
[set up time + (batch size * time per unit)]/batch size; minutes per unit
80
as batch size goes up the cycle time goes ____
down; why? because fixed set up time is spread out over more units
81
operations loves big ___
batch sizes
82
throughput rate =
1/cycle time (units per minute)
83
capacity equal the
throughput rate which is units per amount of time
84
the bottleneck equals the
total process capacity (no ADDING)

MGT 3501-Ops (4 decks)

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