NCSU BUS 370 Test 1 Favre

Operations Function

is the collection of people, technology and systems within an organization that has primarily responsibility for providing the products or services

Supply Chain

a network of manufacturers and service providers that move raw materials through to the end user

Operations management

should be thought about as a transformation process that takes inputs and transfers them into outputs
&
is the planning, scheduling and control of the activities that transform inputs into finished goods and services

First-tier supplier

its supplies materials directly to the firm

Second-tier supplier

it provides goods to the first-tier supplier

Supply chain management

is the ACTIVE management of the supply chain activities and relationships in order to maintain a competitive advantage

Supply Chain Operations Reference (SCOR) Model

is a framework developed by the supply chain council that seeks to provide standards for supply chain management

Relationship Management

this is the most difficult aspect of supply chain; must have a good relationship with upstream and downstream suppliers

Structural Elements

are the tangible resources, such as buildings, equipment and computer systems

Infrastructural Elements

are the people, policies, decision rules and organizational structure ex: personel

Strategies

are the mechanisms by which businesses coordinate their decisions regarding their structural and infrastructural elements

Mission Statement

explains why a business exists

Business Strategy

identifies the firms targeted customers and sets time frames and performance objectives for the business

Core Competencies

are organizational strength or abilities, developed over time, that customers find valuable and competitors find it hard to copy

Functional Strategies

translate the business strategy into specific action for the functional areas such as HR or Marketing

Value Index

a measure that customers use indicate the overall value of an item based on value and importance

Quality

the characteristic of a product/service that bear on its ability to satisfy stated or implied needs

Performance Quality

addressing the basic operating characteristics

Conformance Quality

addressing whether the product was made to specifications

Reliability Quality

will it work for a long time without failing? this will differ with consumers

Delivery Speed

is how quickly the O&SC function can fulfill a need once identified

Delivery Reliability

the ability to deliver when promised

Changeover Flexibility

the ability to provide a new product with minimal delay

Cycletime

AKA throughput time is the total time elapsed needed to complete a business process

Percent value-added time

the percent of total cycletime that is spent on activities that actually provide value

Six Sigma Methodology Rankins

Champions
Master Black Belts
Black Belt
Green Belt
Team Members

DMAIC

steps to improve on EXISTING business process:
Define
Measure
Analyze
Improve
Control

Five M's

Manpower
Methods
Materials
Machines
Measurements

The value perspective

holds that quality must be judged, in part, on how well the characteristics align with the needs of a specific user

8 Dimensions of Quality

1. Performance
2.Features
3. Reliability
4. Durability
5. Conformance
6. Aesthetics
7. Serviceability
8. Perceived quaility

Internal Failure Costs

cost of defects that occur prior to delivery

External Failure Costs

costs if defects occur after reaching the customer

Appraisal costs

such as inspections

Prevention costs

such as employee training

Total Quality Management (TQM)

a managerial approach in which the entire organization is managed so that it excels in all quality dimensions that are important to customers