Material for Exam 1

Question 0

product design

Answer 0

charting the detailed steps required to produce a product

Question 1

define operations management

Answer 1

science of ensuring that goods and services are created and delivered successfully to customers.

Question 2

Inventory management

Answer 2

inventory is tightly controlled to keep cost down and to avoid production that isn’t needed

Question 3

Scheduling

Answer 3

production schedules are created to ensure that enough product is available for both retail and wholesale consumers.

Question 4

Quality Management

Answer 4

Each product or service is judged based on standards of excellence determined by the company or industry

Question 5

What is a good?

Answer 5

It is a physical product that you can see, touch or possibly consume.

Question 6

define durable good

Answer 6

one that does not quickly wear out and typically lasts at least 3 years

Question 7

nondurable good

Answer 7

one that is no longer useful once it’s used or lasts for less than three years

Question 8

what are some examples of nondurable goods?

Answer 8

toothpaste, software, clothing, shoes, and food

Question 9

what are some examples of durable goods?

Answer 9

vehicles, machines, furniture, etc.

Question 10

what is a service?

Answer 10

any primary or complementary activity that does not directly produce a physical product

Question 11

define service encounter

Answer 11

interaction between the customer and the service provider

Question 12

what is a “moment of truth”?

Answer 12

any episodes, transactions, or experiences in which a customer comes into contact with any aspect of the delivery system and forms an impression

Question 13

define service management

Answer 13

integrates marketing human resources, and operations functions to plan, create, and deliver goods and services and their associated service encounters

Question 14

define customer benefit package

Answer 14

a clearly defined set of tangible and intangible features that the customer recognizes, pays for, uses or experiences

Question 15

define peripheral goods or services

Answer 15

those services that are not essential to the primary good or service, but enhance it

Question 16

define variant

Answer 16

is a customer benefit package that departs from the standard and is normally location or firm specific

Question 17

what is an example of a peripheral good?

Answer 17

replacement parts for a vehicle

Question 18

define process

Answer 18

sequence of activities that is intended to create a certain result

Question 19

what are the three main processes?

Answer 19

value creation processes
support processes
general management processes

Question 20

define value creation process

Answer 20

focused on producing or delivering an organization’s primary goods or services

Question 21

define support process

Answer 21

purchasing materials, supplies for manufacturing. managing inventory, installation, benefits, day care etc.

Question 22

define general management processes

Answer 22

accounting, IT, HR, marketing, etc.

Question 23

define environmental sustainability

Answer 23

an organizations commitment to the long-term quality of our environment

Question 24

define social responsibility

Answer 24

an organizations commitment to maintain healthy communities and a society that improves quality of life

Question 25

define economic sustainability

Answer 25

an organizations commitment to address current business needs and economic vitality, and to prepare for the future

Question 26

what are some examples of economic sustainability?

Answer 26

performance excellence, financial management, resource management, emergency preparedness, etc.

Question 27

define value chain

Answer 27

a network of facilities and processes that describes the flow of materials, finished goods, services, information, and financial transactions from suppliers, through the facilities and processes that create goods, services, and those that deliver them to the customer

Question 28

define supply chain

Answer 28

the portion of the value chain that focuses primarily on the physical movement of goods and materials, and supporting flows of information and financial transactions through the supply, production, and distribution process.

Question 29

define value

Answer 29

perception of benefits associated with a good, service, or a bundle of goods or services in relation to what buyers are willing to pay for them

Question 30

formula for value

Answer 30

value=perceived benefits/price (cost) to the customer

Question 31

define value proposition

Answer 31

a competitively dominant customer experience

Question 32

define operational structure

Answer 32

configuration of resources such as suppliers, factories, warehouses, distributors, technical support centers, engineering design, and sales offices, and communication links

Question 33

define vertical integration

Answer 33

refers to the process of acquiring and consolidating elements of a value chain to achieve more control

Question 34

define backward integration

Answer 34

refers to acquiring capabilities toward suppliers

Question 35

define forward integration

Answer 35

refers to acquiring capabilities toward distribution or even customers

Question 36

define outsourcing

Answer 36

the process of having suppliers provide goods and services that were previously provided internally

Question 37

define value chain integration

Answer 37

process of managing information, physical goods, and services to ensure their availability at the right place at the right time, at the right cost, at the right quantity, and with the highest attention to quality

Question 38

offshoring

Answer 38

building, acquiring, or moving of process capabilities from a domestic location to another country location while maintaining ownership and control

Question 39

multinational enterprise

Answer 39

an organization that sources, markets and produces its goods and services in several countries to minimize costs, and to maximize profit, customer satisfaction, and social welfare

Question 40

define customer-satisfaction measurement system

Answer 40

provides a company with customer ratings of specific goods and service features and indicates the relationship between those ratings and the customer's likely future buying behavior

Question 41

define quality

Answer 41

measures the degree to which the output of a process meets customer requirements

Question 42

define goods quality

Answer 42

relates to the physical performance and characteristics of a good

Question 43

define service quality

Answer 43

consistently meeting or exceeding customer expectations and service delivery system performance for all service encounters

Question 44

define service failure

Answer 44

errors in service creation and delivery

Question 45

define flexibility

Answer 45

the ability to adapt quickly and effectively to changing requirements

Question 46

goods and service design flexibility

Answer 46

ability to develop a wide range of customized goods or services to meet different or changing customer needs

Question 47

volume flexibility

Answer 47

ability to respond quickly to changes in the volume and type of demand

Question 48

innovation

Answer 48

refers to the ability to create new and unique goods and services that delight customers and create competitive advantage

Question 49

learning

Answer 49

refers to creating, acquiring, and transferring knowledge, and modifying the behavior of employees in response to internal and external change

Question 50

Triple bottom line

Answer 50

refers to the measurement of environmental, social, and economic sustainability

Question 51

productivity

Answer 51

ratio of output of a process to the input

Question 52

interlinking

Answer 52

quantitative modeling of cause-and-effect relationships between external and internal performance

Question 53

value of a loyal customer

Answer 53

quantifies the total revenue or profit each target market customer generates over the buyer's life cycle

Question 54

actionable measures

Answer 54

provide the basis for decisions at the level at which they are applied

Question 55

measuring supplier performance is critical to managing a what?

Answer 55

value chain

Question 56

forecasting

Answer 56

process of projecting the values of one or more variables into the future

Question 57

planning horizon

Answer 57

length of time on which a forecast is based

Question 58

time bucket

Answer 58

unit of measure for the time period used in a forecast

Question 59

time series

Answer 59

set of observations measured at successive points in time or over successive periods of time

Question 60

trend

Answer 60

the underlying pattern of growth or decline in a time series

Question 61

seasonal patterns

Answer 61

characterized by repeatable periods of ups and downs over short periods of time

Question 62

cyclical patterns

Answer 62

regular patterns in a data series that take place over long periods of time

Question 63

random variation

Answer 63

unexplained variation deviation of a time series from a predictable pattern, such as a trend, seasonal, or cyclical pattern

Question 64

irregular variation

Answer 64

one-time variation that is explainable

Question 65

forecast error

Answer 65

is the difference between the observed value of the time series and the forecast

Question 66

statistical forecasting

Answer 66

based on the assumption that the future will be an extrapolaton of the past

Question 67

moving average forecast

Answer 67

average of the most recent "k" observations

Question 68

single exponential smoothing

Answer 68

forecasting technique that uses a weighted average of past time series values to forecast the value of the time series in the next period

Question 69

regression analysis

Answer 69

method for building a statistical model that defines a relationship between a single dependent variable and one or more independent variables all of which are numerical

Question 70

multiple linear regression model

Answer 70

has more than one independent variables

Question 71

judgmental forecasting

Answer 71

relies upon opinions and expertise of people in developing forecasts

Question 72

grass roots forecasting

Answer 72

asking those who are close to the customer, such as sales people about the customers purchasing plans

Question 73

delphi method

Answer 73

forecasting by expert opinion by gathering judgments and opinions of key personnel based on their experience and knowledge of the situation