Final Flashcards
production
the creation of finished goods/services using the factors of production, historically meant manufacturing
production management
term used to describe all the activities managers do to help their firms create goods
operations management
a specialized area in management that converts or transforms resources (including human resources) into goods/services
ex] quality control, production scheduling
form utility
the value producers add to materials in the creation of finished goods/services
basic requirements of production
- to build and deliver products in response to the demands of the customer at the scheduled delivery
- to provide an acceptable quality level
- to provide everything at the lowest possible cost
process manufacturing
that part of the production process that physically or chemically changes materials
ex] boiling an egg
assembly process
that part of the production process that puts together components
continuous process
a production process in which long production runs out finished goods over time
intermittent process
a production process in which the production run is short and the machines are changed frequently to made different products
goal: to provide goods/services simultaneously
computer-aid design (CAD)
the use of computers in the design of products
computer-aid manufacturing (CAM)
the use of computers in the manufacturing of products
computer-integrated manufacturing (CIM)
the uniting of CAD with CAM
flexible manufacturing
designing machines to do multiple tasks so that they can produce a variety of products
leaning manufacturing
the production of goods using less of everything compared to mass production
characteristics of leaning manufacturing
- takes half the human effort
- have half the defects in the finished product
- requires 1/3 of the engineering effort
- use half the floor space for same output
- caring 90% less inventory
mass customization
tailoring products to meet the needs of individual customers
operations management planning
helps solve many problems in service and manufacturing sectors
facility location, telecommunicating, facility layout, material requirement planning, purchasing, Just-In-Time (JIT) inventory control, quantity vs quality
facility location
the process of selecting the geographc location for a company’s operation–minimize costs (move if necessary)
telecommunicating
working from home via computer
incentive: tax situation
facility layout
the physical arrangement of resources (including people) in the production process
assembly-line, modular, fixed position, process
material requirement planning (MRP)
computer based operations management system that uses sales forecasts to make sure that needed parts and materials are available to the right place and right time
enterprise resource planning (ERP)
newer version of the MRP that combines the computerized functions of all the divisions and subsidiaries of the firm into a single database
purchasing
the function in a firm that searches for high-quality material resources finds the best suppliers and negotiates the best prices for goods/services
Just-In-Time (JIT) inventory control
a production process in which a minimum inventory is kept on the premise and parts, supplies and other needs are delivered just in time to go on the assembly line
quality
consistently producing what the customers want while reducing errors before and after delivery to customer
six-stigma quality
quality measure that allows only 3.4 defects per million opportunities
statistical quality control (SQC)
process some managers use continuously to monitor all phases of production to assure quality is being built into the product from the beginning
statistical process control (SPC)
process of testing statistical samples of product components at each stage of the production process and plotting those results on a graph
any variances from quality standards are recognized and can be corrected if beyond the set standard
ISO 9000
the common name given to the quality management and assurance standards
ISO 14000
a collection of the best practices for managing an organization’s impact on the environment
program evaluation and review technique (PERT)
a method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project
critical path
the sequence of tasks that takes the longest time to complete
GANTT Chart
bar graph showing the production managers what projects are being worked on and what stage they are in at a given time
marketing
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
customer relationship management (CRM)
process of learning about as much as possible about customers and doing everything you can to satisfy them (or even exceed their expectations) with goods and services
ex] Expedia, Travelocity
product
any physical good or service or idea that satisfies a want or need plus anything that would enhance the product in the eyes of the customers (such as the brand)
test marketing
process of testing products among potential users
brand name
a word, letter, or group of words or letters that differentiates one seller’s goods/services from those of competitors
promotion
all the techniques sellers use to inform people and motivate them to buy their products and services
marketing research
analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions
secondary data
data that has already been compiled by others and published in journals and books or made available online
primary data
data that you gather yourself
focus group
small group of people who meet under the direction of a discussion leader to communicate their opinions about an organization, its products, or other given issues
environmental scanning
the process of identifying the factors that can effect marketing success– global, technological, sociocultural, competitive, economic
customer market
all the individuals or households that want goods and services for personal consumption use
market segmentation
process of dividing the total market into groups whose members have similar obstacles
target marketing
marketing toward those groups an organization decides it can serve profitably
geographic segmentation
cities, counties, states, or region
demographic segmentation
age, income, education level
psychographic segmentation
values, attitude, interests
benefit
determining which benefits of the product to talk about
volume (or usage)
by volume of use, usage
niche marketing
process of finding small but profitable market segments and designing or finding products for them
one-to-one marketing
developing a unique mix of goods/ services for each individual customer
mass marketing
developing products and promotions to please large groups of people
relationship marketing
marketing strategy with the goal of keeping individual customers overtime by offering them products that exactly meet their requirement
B2B
business to business
all the individuals/ organizations that want goods/services to use in producing other goods/services or to sell/rent/supply goods to others
value
good quality at a fair price
benefits minus cost, want benefits>costs
distributed product development
handing off various parts of your innovation process (often to companies in other countries)
total product offer
everything that consumers evaluate when deciding whether or not to buy something
value product
product line
a group of products that are physically similar or are intended for a similar market
product mix
combination of product lines offered by a manufacturer
product differentiation
creation of real or perceived product differences
convenience goods and services
products that the consumer wants to purchase frequently and with a minimum effort
shopping goods and services
those products that the consumer buys only after comparing value, quality, price, and style from a variety of sellers
specialty goods and services
customer products with unique characteristics and brand identity
products perceived as having no reasonable substitutes, special effort to purchase
unsought goods and services
products that customers are unaware of, haven’t necessarily thought of buying, or finding that they need to solve an unexpected problem
industrial goods
products used in production of other products
bundling
grouping two or more products together and pricing them as a unit
trademark
a brand that has exclusive legal protection for both its brand name and design
manufacturer’s brand
brand names of manufacturer’s that distribute products nationally
dealer (private-label) brand
products that don’t carry manufacturers’ name but the distributor/retailers name
generic goods
nonbranded products that usually sell at a sizable discount compared to national or private label brands
knock-off brands
illegal copies of national brand name goods
brand equity
value of the brand name and symbols
brand loyalty
degree to which customers are satisfied, like the brand, and are committed to further purchases
brand awareness
how quickly or easily given brand name comes to mind when a product category is mentioned
brand association
linking of a brand to other favorable images
brand manager
manager who has direct responsibility for one brand or one product line
product screening
process designed to reduce the number of new product ideas being worked on at any one time
product analysis
making cost estimates and sales forecasts to get a feeling for profitability of new product ideas
concept testing
taking a product idea to customers to test their reaction
commercialization
promoting the product to distributors and retailers to get wide distribution, and developing strong advertisement and sales campaign to generate and maintain interest in the product among distributors and customers
product life cycle
theoretical model of what happens to sales and profits for a product class over time introduction, growth, maturity, decline
target costing
designing a product so that it satisfies customers and meets the profit margins desired by the firm
demand based
competition-based pricing
strategy based on what all the other competitors are doing
price leadership
strategy by which one or more dominant firms set the pricing practices that all competitors in the industry follow
breakeven analysis
the process used to determine profitability at various levels of sales
total fixed costs
all the expenses that remain the same no matter how many products are made or sold
variable costs
costs that change according to the level of production
skimming price strategy
strategy in which a new product is priced high to make optimum profit while there’s little competition
penetration strategy
strategy in which a product is priced low to attract many customers and discourage competition
everyday low pricing (EDLP)
setting prices lower than competitors and then not having any special sales
high-low pricing strategy
setting prices that are higher than EDLP stores but having many special sales where the prices are lower than competitors
psychological pricing
pricing goods/services at price points that make the product appear less expensive than it is
marketing intermediaries
organizations that assist in moving good/services from producers to businesses (B2B0 and from business to customers (B2C)
channel of distribution
whole set of marketing intermediaries that join together to distribute in path
agent/brokers
brings buyers and sellers together and assist in negotiating an exchange but don’t take title in good
wholesaler
marketing intermediary that sells to other organization
retailer
organization that sells to ultimate customers
utility
the want-satisfying ability, or value, that organizations add to goods/services
time utility
adding value by having them when people want them
place utility
adding value by having them where people want them
possession utility
doing whatever is necessary to transfer ownership
credit, deliveries, installation guarantee, follow up services
information utility
adding value by opening two-way flows of info between market participants
service utility
add value by providing fast, friendly service during and after the sale and by teaching customers how to best uses products over time
merchant wholesalers
independently owned firms that take title to the goods they handle
jack robbers
wholesalers that furnish racks/shelves full of merchandise to retailers, display products and sell on consignment
cash and carry wholesalers
wholesalers that serve mostly smaller retailers with a limited assortment of products
drop shippers
wholesalers that solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer
intensive distribution
distribution that puts products into as many retail outlets as possible