Operations Management – Ch 2 – Key Terms

Competitiveness
How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services.
core competencies
The special attributes or abilities that give an organization a competitive edge.
environmental scanning
The monitoring of events and trends that present threats or opportunities for a company.
Goals
Provide detail and scope of the mission.
Mission
The reason for the existence of an organization.
mission statement
States the purpose of an organization.
operations strategy
The approach, consistent with the organization strategy, that is used to guide the operations function.
order qualifiers
Characteristics that customers perceive as minimum standards of acceptability to be considered as a potential for purchase.
order winners
Characteristics of an organization’s goods or services that cause it to be perceived as better than the competition.
Productivity
A measure of the effective use of resources, usually expressed as the ratio of output to input.
quality-based strategy
Strategy that focuses on quality in all phases of an organization.
Strategies
Plans for achieving organizational goals.
SWOT
Analysis of strengths, weaknesses, opportunities, and threats.
Tactics
The methods and actions taken to accomplish strategies.
time-based strategy
Strategy that focuses on reduction of time needed to accomplish tasks.
-Planning time < -Product/Service design time < -Processing time < -Changeover time < Deliver time< Response time for complaints <
fail
Why some operations ___________
– Neglecting operations strategy
-Failing to take adv of SO and recognize WT
-too much emphases on STD vs research and development
-too much emphases on product & service design and not on process design and involvement
– Neglecting investments in capitol and human resources
– communication and cooperation between functional areas
-fail to consider customers wants and needs.
Compete
List several ways business organizations
-identify wants & needs
-price and quality
-Advertising & Promotion
Supply chain (strategy)
this takes into account not only the operations strategy of the firm but also the strategies of the suppliers and customers in a firm’s supply chain. should be aimed at a sustainable competitive advantage for the ENTIRE supply chain.
Sustainability (Strategy)
actions that utilize resources effectively now, and conserve those resources for future use
Global (Strategy)
Selling the same standardized product and using the same basic marketing approach in each national market
action plan
a medium or short-term project to accomplish a specific objective, assigned to an individual, with a deadline and the resources needed
competitive priorities
the importance given to operations characteristics: cost, quality, flexibility, and delivery
key purchasing criteria
the major elements influencing a purchase: price, quality, variety, and timeliness
outsourcing
buying a part of a good/service or a segment of production/service process from another company, a supplier
strategic planning
the managerial process that determines a strategy for the organization
vision
where the organization desires to be in the future
values
shared beliefs of the organization’s stakeholders