Strategy & Productivity Operations Management - Chapter 2 Flashcards

Vocabulary flashcards covering key terms and concepts from Chapter 2 on Operations Strategy, Competitive Priorities, and Productivity.

Business Strategy

Defines the long-range plan for the company.

Operations Strategy

A plan for the design and management of operations functions that supports the business strategy by focusing on specific competitive priorities.

Marketing Strategy

Defines marketing plans to support the overall business strategy.

Finance Strategy

Develops financial plans to support the overall business strategy.

Operational Efficiency

Performing operational tasks well, even better than competitors.

Environmental Scanning

Monitoring the business environment for market trends, threats, and opportunities.

Mission

A statement that defines what the business is, who the clients are, and how company values define the business.

Core Competencies

Unique strengths that can help a company win in the market.

Competitive Priorities

Specific capabilities developed by operations strategy to give a company a competitive edge, categorized into cost, quality, time, and flexibility.

High Performance Design

A quality dimension featuring superior features, high durability, and excellent customer service.

Product and Service Consistency

A quality dimension focused on meeting design specifications, maintaining close tolerances, and providing error-free delivery.

Rapid Delivery

A time-related competitive priority focused on shortening the time between order placement and delivery.

On-time Delivery

A time-related competitive priority focused on delivering products exactly when needed every time.

Product Flexibility

The ability to easily switch production from one item to another or customize products/services to meet specific customer requirements.

Volume Flexibility

The ability to ramp production up and down to match market demands.

Order Qualifiers

Base competitive priorities or standards that a product must meet to even be considered by customers.

Order Winners

Competitive priorities that differentiate a company's product or service from competitors to win orders in the market.

Structure

Operations decisions related to the production process, including facility characteristics, selection of technology, and the flow of goods and services.

Infrastructure

Operations decisions related to planning and control systems, workers, pay, and quality.

Productivity

A measure indicating how efficiently an organization uses its resources, computed as the ratio of organizational outputs divided by inputs.