project / operations chapter 2 Competitiveness, Strategy, and Productivity

Vocabulary flashcards covering fundamental concepts, operations decision areas, planning hierarchies, and productivity metrics from Chapter 2.

Competitiveness

How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services.

Mission

The reason for an organization's existence.

Goals

Statements that provide detail and the scope of the mission, serving as organizational destinations.

Strategy

A plan for achieving organizational goals that serves as a roadmap for reaching organizational destinations.

Core Competencies

The special attributes or abilities that give an organization a competitive edge.

Operations Strategy

The approach, consistent with organization strategy, that is used to guide the operations function.

Time-Based Strategies

Strategies that focus on the reduction of time needed to accomplish tasks.

Quality-Based Strategy

Strategy that focuses on quality in all phases of an organization.

Productivity

A measure of the effective use of resources, usually expressed as the ratio of output to input: $\text{Productivity} = \frac{\text{Output}}{\text{Input}}$.

Partial Measures of Productivity

Productivity measures expressed as output divided by a single input, such as $\frac{\text{Output}}{\text{Labor}}$ or $\frac{\text{Output}}{\text{Capital}}$.

Multifactor Measures of Productivity

Productivity measures expressed as output divided by multiple inputs, such as $\frac{\text{Output}}{\text{Labor} + \text{Machine}}$.

Total Measure of Productivity

Productivity measure expressed as goods or services produced divided by all inputs used to produce them: $\frac{\text{Goods or services produced}}{\text{All inputs used to produce them}}$.

Hierarchical Planning Sequence

The strategic planning order moving from Mission to Goals, Organizational Strategies, Functional Strategies, and Tactics.

Strategic OM Decision Area: Product and Service Design

An operations management decision area that affects costs, quality, liability, and environmental issues.

Strategic OM Decision Area: Process Selection and Layout

An operations management decision area that affects costs, flexibility, skill level needed, and capacity.

Strategic OM Decision Area: Work Design

An operations management decision area that affects quality of work life, employee safety, and productivity.

Strategic OM Decision Area: Supply Chains

An operations management decision area that affects costs, quality, agility, shortages, and vendor relations.

Factors Affecting Productivity

The key internal operational elements influencing output capability: capital, methods, quality, technology, and management.