Ch. 1:Intro to Operations and Supply Chain Management

balanced scorecard
performance assessment including metrics related to customers, processes, learning & growing, and financials
craft production
process of handcrafting products or services for individual customers
the action plans generated from the policy deployment process
interchangeable parts
standardization of parts initially as replacement parts; enabled mass production
lean production
adaptation of mass production that prizes quality and flexibility
mass customization
mass production of customized products
mass production
high-volume production of a standardized product for a mass market
function or system that transforms inputs into outputs of greater value
operations management
design and operation of productive systems
policy deployment
a planning system for converting strategy to measurable objectives throughout all levels of an organization
determining how a firm will compete in the marketplace
ratio of output to input
scientific management
systematic analysis of work methods proposed by Frederick Taylor in the early 1900s
common vision that unites an organization, provides consistency in decisions, keeps org moving in the right direction
supply chain management
managing the flow of information, products, and services across a network of customers, enterprises, and supply chain partners
value chain
series of activities from supplier to customer that add value to a product or service
coefficient of optimism
measure of a decision maker’s optimism from 0 (completely pessimistic) to 1 (completely optimistic),used in the hurwicz decision criterion; [alpha]
equal likelihood (La Place) criterion
decision criterion in which each state of nature is weighted equally
expected value
weighted avg of decision outcomes in which each future state of nature is assigned a probability of occurrence
expected value of perfect information (EVPI)
maximum value a decision maker would be willing to pay for perfect information about future states of nature
Hurwicz criterion
a decision criterion in which the decision payoffs are weighted by a coefficient of optimism (alpha)
maximax criterion
a decision criterion that results in the maximum of the maximum payoffs
maximin criterion
a decision criterion that results in the maximum of the minimum payoffs
minimax regret criterion
a decision criterion that results in the minimum of the maximum regrets for each alternative
the outcome of a decision
payoff table
method for organizing and illustrating payoffs from different decisions given various states of nature