Chapter 2

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  1. operations strategy
    a set of competitive priorities coupled with supply chain structural and infrastructural design choices intended to create capabilities that support a set of value propositions targeted to address the needs of the critical customer
  2. corporate strategy
    determines the overall mission of the firm and the types of business that the firm wants to be in
  3. strategic business unit
    The semi-independent organizations used to manage different products and market segments
  4. business unit strategy
    determines how a strategic business unit will compete
  5. business model
    the combination of choices determining the customers an SBU will target, the value propositions it will offer, and the supply chain/operations management capabilities it will employ
  6. SWOT
    (Strength, Weakness, Opurtunity, Threat) A strategic planning technique to help firms identify opportuies where they can develop a sustainable competitive advantage and areas where the firm is significantly at risk
  7. functional strategy
    Determines how the function will support the overall business strategy
  8. customers
    Parties that use or consume the products operations management processes
  9. critical customers
    A customer that the firm has targeted as being important to its future success
  10. order winners
    product traits taht cause a customer to select one product over its competitors
  11. order qualifiers
    product traits that must be met at certain level for the product to be considered by the customer
  12. order losers
    Product traits that if not satisfied cause the loss either the current order or future orders
  13. value proposition
    A collection of product and services features that is both attractive to customers and different than competitors offerings
  14. quality
    a prodcuts fitness for consumption in terms of meting customers needs and desires. Most products must have a certain quality, while real good quality can be an order winner
  15. timeliness
    the degree to which a product is delivered or available when the customer wants it. orders being late can be order losers while being on time are order qualifiers
  16. lead time
    the amount of time that passes between the beginning and ending of a set of activites. Two types, time to market and order-to-delivery lead time
  17. time to market
    The total time that a firm takes to conceive, design, test, product and deliver a new or revised product to market. Can be order winner if new products are better than the other prodcuts
  18. order-to-delivery lead time
    The time that passes from the instant the customer places an order for a product until the instant that the customers receives the prodcut
  19. costs
    The expenses incurred acquiring and using a product. Purchase costs are important but so are other costs like maintenance and disposal costs
  20. process related competitve priorites
    Pertain to how the supply chain runs over time. Work around areas of flexability, innovation and sustainability
  21. innovation
    both radical (new technology) and incremental(small features) changes in process and products.
  22. Flexibility
    an operations ability to respond efficiently to changes in products, processes (including supply chain relations) and competitive enviorments
  23. sustainability
    maintain operations that are both profitable and non-damaging to society or the enviornment
  24. risk management
    developing operations that anticipate and deal with problems resulting from natural events, social factors, economic issues or technical issues. Think Mattel lead paint example
  25. triple bottom line
    an approach to the corporate performance measurement that focuses on a company's total impact measured in terms of profit(monetary), people(social reponsibility), and the planet(environmental responsibility)
  26. capabilites
    • Unique and superior operational abilites that stem from the routines skills and processes that the firm develops and uses. Usually strong in one or more of these five areas
    • 1. Procceses- specialized routines
    • 2. Planning systems - development planning
    • 3 Technology- new technology
    • 4. People and Culture- training programs
    • 5. Supply chain relationships- good with customers or suppliers
Card Set
Chapter 2
Cards for the Indiana University class P300 at Kelley school of business
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