Unit 1

Lead Time

Lead Time

The total time it takes for a customer order to be fulfilled, starting from the order placement to the delivery of the final product.

Customer Order Decoupling Point

The point in the production process where a product is linked to a specific customer order, determining the inventory strategy and impacting the responsiveness to customer demands.

Make-To-Stock

A production strategy where products are manufactured based on forecasted demand and stored as inventory until customer orders are received.

Assemble-To-Order

A production strategy where products are partially assembled based on forecasted demand and completed only when a customer order is received, allowing for some customization.

Make-To-Order

A production strategy where products are manufactured only after receiving a customer order, ensuring customization and reducing inventory costs.

Engineer-To-Order

A production strategy where products are designed and manufactured specifically to meet unique customer specifications, typically involving significant customization.

Project Layout

A production setup where resources are arranged according to the sequence of activities required to complete a project, often used for large, complex projects.

Workcenter

A production setup where similar tasks or processes are grouped together in a dedicated area, allowing for efficient processing of similar items in small batches.

Manufacturing Cell

A production setup where different types of products or parts are manufactured in a dedicated area designed for flexibility and efficiency, often used for products with similar process requirements.

Assembly Line

A production setup where products move sequentially through a fixed series of workstations, each performing a specific task, commonly used for high-volume, standardized products.

Continuous Process

A production setup where materials are continuously processed through a series of operations, typically used for high-volume, homogeneous products like chemicals or paper.

Product-Process Matrix

A framework that links different production processes to their appropriate product structures, helping to align manufacturing processes with product characteristics and business strategies.

Operations and Supply Chain Management (OSCM)

The design, operation, and improvement of the systems that create and deliver the firm's primary products and services.

Process

A series of actions or steps taken to achieve a particular end in the production or service delivery.

Product-Service Bundling

The combination of products and services to create additional value for the customer.

Manufacturing Strategy

A plan to design and manage manufacturing operations to achieve business objectives.

Just-in-Time (JIT)

An inventory strategy where materials are produced or acquired only as needed for production.

Total Quality Control (TQC)

An approach where all members of an organization participate in improving processes, products, services, and culture.

Lean Manufacturing

A systematic method for waste minimization without sacrificing productivity.

Total Quality Management (TQM)

An organization-wide effort focused on continuous improvement, customer satisfaction, and standardizing processes to ensure quality.

Business Process Reengineering (BPR)

The radical redesign of core business processes to achieve significant improvements in productivity, cycle times, and quality.

Six Sigma

A set of techniques and tools for process improvement aimed at reducing defects and variability.

Mass Customization

The production of personalized goods or services to meet individual customer's needs with near mass production efficiency.

Electronic Commerce

The buying and selling of goods and services over electronic systems such as the internet.

Sustainability

Meeting the needs of the present without compromising the ability of future generations to meet their own needs.

Triple Bottom Line

An accounting framework that incorporates three dimensions of performance: social, environmental, and financial.

Business Analytics

The use of data, statistical analysis, and predictive modeling to make business decisions.

Internet of Things (IoT)

The network of physical objects embedded with sensors, software, and other technologies to connect and exchange data with other devices and systems over the internet.

Efficiency

The ability to accomplish a job with a minimum expenditure of time and resources.

Effectiveness

The degree to which objectives are achieved and the extent to which targeted problems are solved.

Value

The importance, worth, or usefulness of something, often defined as the benefit received for the cost incurred.

operations and supply chain strategy

The overall plan for managing all resources that go into producing and delivering a company's goods and services, ensuring alignment with the company's overall strategy to achieve a competitive advantage.

operations effectiveness

The ability of a company to perform its operational tasks efficiently and effectively, maximizing productivity and minimizing waste while meeting customer expectations.

straddling

The practice of trying to match the benefits of a successful position while maintaining an existing position, which often leads to a suboptimal performance in both positions due to conflicting priorities.

order winners

The specific criteria that differentiate a company's products or services from those of its competitors, which can be critical factors that persuade customers to choose one product over another.

order qualifiers

The minimum standards or criteria that a product or service must meet for it to be considered by potential customers, ensuring it can compete in the market.

activity-system maps

Visual representations that show the relationships between a company's different operational activities, highlighting how these activities contribute to the company's overall strategy.

supply chain risk

The potential for disruptions within a supply chain due to various factors such as natural disasters, economic instability, or supplier failures, which can impact the ability to deliver products or services.

productivity

A measure of the efficiency of production, calculated by comparing the amount of output produced to the inputs used in the production process.

sustainability

The practice of conducting business in a way that balances economic success with social and environmental responsibilities, ensuring long

triple bottom line

An accounting framework that evaluates a company's performance based on three dimensions: economic value, social responsibility, and environmental impact, aiming to achieve sustainability and corporate social responsibility.

Service Package

A bundle of tangible and intangible features that define the total service experience for a customer, including physical goods, services, information, and the environment in which the service is delivered.

High And Low Degrees Of Customer Contact

The extent to which customers are involved in the production and delivery of a service, with high degrees indicating significant interaction and customization, and low degrees indicating minimal interaction and standardization.

Web Platform Business

A business model that uses online platforms to provide services, facilitate transactions, and connect customers with service providers, often leveraging technology to scale operations and enhance customer experience.

Service Guarantees

Promises made by a service provider to ensure a certain level of service quality and reliability, often including compensation or corrective actions if the service does not meet the promised standards.

Service Blueprint

A detailed visual representation of the service delivery process, mapping out each step from the customer's perspective, identifying key touchpoints, and highlighting potential areas for improvement.

Poka-Yokes

Mistake-proofing mechanisms or devices designed to prevent errors in the service delivery process, ensuring consistent quality and reducing the likelihood of defects or failures.