Operation Management TRUE OR FALSE PART 2

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15 Terms

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PRODUCTIVITY
- is essentially a scorecard of how efficiently resources are used and a measure of competitiveness.
- can be measured for individuals, department, or organizations
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COMPETITIVENESS
- how effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services.
- the degree to which a nation can produce goods and services that meet the test of international markets
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CONDITIONS THAT CAUSES HIGH RIVALRY AMONG COMPETING FIRMS
1.When the number of competing firms is high
2. When competing firms are of similar size 3. When competing firms have similar capabilities
4. When the demand for the industry's products is falling
5. When the product or service prices in the industry is falling
6. When consumers can switch brands easily
7. When barriers to leaving the market are high
8. When barriers to entering the market are low
9. When fixed costs are high among competing firms
10. When the product is perishable
11. When rivals have excess capacity
12. When consumer demand is falling
13. When rivals have excess inventory
14. When rivals sell similar products/services 15. When mergers are common in the industry
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COMPETITIVE CAPABILITIES
- are the cost, quality, time, and flexibility dimensions that a process or supply chain possesses and can deliver.
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LOW-COST OPERATION
-Delivering a service or a product at the lowest possible cost to the satisfaction of external or internal customers of the process or supply chain
PROCESS CONSIDERATION
- To reduce cost
- Make them efficient using rigorous process analysis
-Investment in new automated facilities or technologies to lower the cost.
EXAMPLE
- Costco
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TOP QUALITY
- Delivering an outstanding service or product
PROCESS CONSIDERATION- Require a high level of customer contact & helpfulness, courtesy, and availability
- require superior product features, close tolerance, and greater durability from a manufacturing process
EXAMPLE
- Rolex
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CONSISTENT QUALITY
producing services or products that meet design specifications on a consistent basis
PROCESS CONSIDERATION
- design and monitored to reduce errors, prevent defects, and achieve similar outcomes overtime, regardless of the ''level'' of quality
EXAMPLE:
MCDONALD'S
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DELIVERY SPEED
- quickly filling a customer's order
PROCESS CONSIDERATION
-reduce lead time between the receipt of a customer order and filling it)
-keeping backup capacity cushions, storing inventory
-using transportation options
EXAMPLES
-DELL
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ON-TIME DELIVERY
Meeting delivery-time promises
PROCESS CONSIDERATION
-reduce lead time & planning processes( forecasting, appointments, order promising, scheduling, and capacity planning)
-used to increase percent of customer orders shipped when promised
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DEVELOPMENT SPEED
Quickly introducing a new service or a product
PROCESS CONSIDERATION
-aim to achieve cross-functional integration and involvement of critical external suppliers
EXAMPLES
-ZARA
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CUSTOMIZATION
satisfying the unique needs of each customer by changing service or product designs
PROCESS CONSIDERATION
-customization strategy typically have low volume
-ability to reconfigure processes to meet diverse types
EXAMPLES
- Ritz Carlton
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VARIETY
Handling a wide assortment of services or products efficiently
PROCESS CONSIDERATION
- supporting variety must be capable of larger volumes than processes customization
-not necessarily unique to specific customers and may have repetitive demands
EXAMPLES:
-Amazom.com
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VOLUME FLEXIBILITY
accelerating or decelerating the rate of production of services or products quickly to handle large fluctuations in demand
PROCESS CONSIDERATION
-designed for excess capacity and excess inventory to handle demand fluctuations
-adjusts capacity without accumulation of inventory or excess capacity
EXAMPLE:
- The United States Post Office (USPS)
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GLOBALIZATION
means customers, talent, and suppliers are worldwide
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SIX REASONS FOR DECIDING TO CHOOSE TO TRANSITION TO AN INTERNATIONAL BUSINESS MODEL
1) To improve the supply chain
2) To reduce costs and exchange rate risk
3) To improve operations
4) To understand markets
5) To improve products 6 ) To attract and retain global talent