Supply Chain

What level of strategic planning asks the question, “What business(es) should we be in?”

Corporate

What level of strategic planning asks the question, “How do we compete?”

Business

What level of strategic planning asks, “How do we best support the SBU strategy?”

Functional

Overall mission and target businesses

Corporate strategy

what covers business portfolio / targeted businesses

Corporate strategy

What typically covers overall values, direction, and goals?

Corporate strategy

What typically covers corporate-level strategies?

Corporate strategy

What typically covers performance metrics?

Corporate strategy

What typically covers resource allocation?

Corporate strategy

semi-independent organization for different products or markets

Strategic Business Units

A set of competitive coupled with supply chain structural and infrastructural design choices intended to create capabilities and support a set of value propositions targeted to address the needs of critical customers.

Operation strategy

determines how function support business unit strategies

functional strategy

The combination of the choices determining the customers an SBU will target, the value propositions ti will offer, and the supply chain/operations management capabilities it will employ.

Business Model

Identification of customer or market segments

SWOT analysis

A strategic technique to help firms identify opportunities they can develop a sustainable advantage and areas where the firm is significantly at risk

SWOT analysis

Internal factors

strengths and weaknesses

external factors

opportunities and threats

critical to the firms success and recieves firm’s focus

Key Customer

tangible and intangibles that customers expect from a firm

Value proposition

what a firm does well, defines types of problems a firm can proficiently address

Capabilities

why. customers choose your firm

order winners

minimum standard to be met

order qualifiers

why customers avoid your firm

order losers

what is a statement of product and service features that the firm offers to its customers?

value proposition

what must be both attractive to customers and different from what is offered bye the firm’s competitor?

value proposition

three factors of product-related competitive priorities?

quality, timeliness, cost

How customer’s problem is “solved” communicated in the terms of the quality, timeliness, and cost of the product “solution”

Product-related competitive priorities

fitness for consumption in terms of meeting customer needs & desires

quality

delivery or availability when customer wants

timeliness

expenses incurred in acquiring or using the product

cost

3 factors of timeliness

reliability, speed, availability

the amount of time it take to begin and end of a set of activities

lead time

total time it takes for a firm to conceive, design, test, produce, and deliver a new revised product

time to market lead time

time that passes from the instant the customer places an order until the customer receives what they ordered

order to delivery lead time

radical and incremental changes in products and processes

innovation

ability to respond efficiently to changes in products, processes, and competitive environment

flexibility

anticipating and dealing with unexpected events

risk management

natural events, social factors, economic issues, technological issues, safety and security

supply chain risks

maintaining operations that are profitable and non-damaging to society or the environment

sustainability

corporate performance measurement that focuses on a firm’s overall impact measured in terms of profit, people, and the planet

triple bottom line

a set of standards that socially conscious investors can use to evaluate the performance of organizations

environmental, social, nd governance (ESG)

what are the three dimensions fundamental to sustainable strategy?

profits, people, and planet

unique and superior abilities based upon the firm’s routines, skills, and processes

capabilities

enable firm to meet customer expectations and are difficult for competitors to imitate

core capabilities

alignment with capabilities, value proposition, and critical customers

fit

processes, planning, technology, people and culture, and supply chain relations

key areas of capabilities

a model that sees certain types of resources (VRIO) as key to superior firm performance

Resource based view

what does VRIO stand for?

valuable, rare, costly to imitate, organized to capture value

to carry out plans and initiatives in order to deliver the realized value to customers

execution

to assess, communicate, and manage performance in ways that capture lessons learned and focus attention on areas needing improvement

Feedback / measurement

a system of structured activities that use resources to tuen inputs into valuable outputs

process

what views activities in an organization as a collection of processes?

process thinking

according to Juans law what percentage of issue were systematic process errors?

85%

activities, inputs, outputs, flows, process structure, and management policies are all what?

the anatomy of a process

change of inputs

operations

moves an input from place to place

transportation

unintentionally stops the flow of an input

delay

verifies the results of an activity

inspection

is the formal inventorying of an input

storage

items that are acted upon or consumed by the process

input

both intend and unintended products of the process

output

the specific types of outputs and levels or performance that a process can generate

processes capabilities

important to design metrics, rewards, and controls consistent with the overall mission

management policies

as production volumes increase with additions of capacity, the unit cost to produce a product decreases to an optimal level

economies of scale

allocation fo fixed costs can be spread over more units as output grows, reducing the cost per unit

reason for economies of scale

equipment and construction costs do not increase proportionally with size

reason for economies of scale

lower costs for purchases because of higher volumes

reasons for economies of scale

as volume increases, learning decreases - a phenomenon called the learning curve

reason for economies of scale

amount of output a process can produce given the amounts of input and resources made available to the process

capacity

highest achievable level under ideal conditions, for a limited time

maximum capacity

achievable level under normal conditions, for an extended time

effective capacity

how much available capacity is actually used

utilization

the percentage of units produced as a percentage of inputs

yield rate

a constraint or “scarce resource” for which demand is greater than or equal to capacity; this mlimits the ability of the process to generate output

bottleneck

processes occur one after another

serial / sequential structure

two or more processes occur simultaneously

parallel strucure

time for one unity to get through a process

flow time

time it takes to process one unit at an operation in the overall process

cycle time

there is a relationship between the flow time (F), inventory level (I), and throughout rate (TH)

Little’s Law

coefficient of variation of job arrivals

C(a)

coefficient of variation of job processing times

C(p)

utilization of job processing times

u

average processing (cycle) time for jobs

t(p)

changing one element of a process may impact other elements, sometimes in unexpected ways. process elements are interdependent.

manage processes as systems

what should address aspects of performance that are important to both customers and the organization?

metrics

what are verifiable and quantifiable, aligned with standards and rewards, should support strategy and priorities, and provide the basis for monitoring, controlling, and improving processes?

effective metrics

affects the customer views not only the process but also the firm

visible to the customer

a process that feeds a number of alternative processes coming out of it

feeder process

a problem in this process can affect many downstream outcomes

feeder process

a technique for documenting activities in a detailed, compact, and graphic form

process mapping analysis

consumer resources without adding value

waste generating

a technique used to indicate the general flow of plant processes and equipment

process flow diagramming

a mapping technique that analyzes the flow of material and information needed to bring a product to the customer

value stream mapping

visual element in process flow diagram or flowcharts that organizes the activities into groups based on tasks

swim lanes

an approach similar to process mapping that analyzes the interface between customers and service processes

service blueprinting

deciding on the way production of goods or services will be organized major implications

process selection

layout of facilities

major implication

equipment, capital-equipment or labor intensive

major implication

design of work system

major implication

new product and service, technological changes, and competitive pressures

major implications