Operations Management Productivity and Operations Strategy Lecture 2

Flashcards on Operations Management Productivity and Operations Strategy Lecture 2

Vertically Integrated Factory

Owning and managing the entire supply chain, from suppliers to retailers.

Supply Chain Management

Delegating the operation and production of some parts and components to experts around the globe.

Core Competency

Skills a company can do best.

Lack of Control Over the Supplier

A risk of supply chain management where a company losses control over a product by allowing another company to produce their products.

Intellectual Property Loss

A risk of supply chain management where a manufacturer divulges formulas or technologies to a third party, to a supplier.

Globalization

When domestic production and exporting are no longer a viable business model to assure profitability in the marketplace.

Zara's Strategy

A competitive strategy that is highly responsive to changing trends in the market with affordable prices.

Reasons for Globalization

Reducing costs, improving the supply chain, providing better goods and services, understanding markets better, learning from competitors and improving operations, and attract and retain global talent in the system.

Improving the Supply Chain

Locating facilities in countries where unique resources are available.

Providing Better Goods and Services

A company opens bottling factory in every single market they serve customers.

Strategy

Long term plan that determines the direction for an organization to achieve its mission and become or remain competitive.

Operations Strategy

Long term plans from the operations management perspective related to products, processes, cost, delivery times, etc.

Operations Management Mission for Mercedes

Design and produce products and services with outstanding quality and inherent customer value.

Toyota OEM Mission

Achieve low investment in inventory consistent with high customer service levels.

Competitive Strategy

A firm's competitors set of customer needs that should be satisfied through products and services.

Differentiation

A firm decides to be different from the competitors in the market.

Cost Leadership

A firm follows to reduce costs.

Responsiveness

A firm takes responsibility as a competitive capability to be successful in the marketplace.

Measuring Productivity

A way to measure how good the system is working over time to address the process satisfying customer needs.

Productivity

The value of outputs (services or products) divided by the values of input resources.

Productivity Growth

Current productivity minus previous productivity divided by previous productivity.

Single Factor Productivity

Interested to see the productivity for a specific unit of input like a labor, like capital invested, like equipment, machinery or even the energy.

Total Productivity

Measuring the total productivity of the system considering all the inputs.

Multi Factor Productivity

Only makes sense if all the inputs are expressed in the same unit, usually a monetary unit such as dollars.

Vertically Integrated Factory

Owning and managing the entire supply chain, from suppliers to retailers.

Supply Chain Management

Delegating the operation and production of some parts and components to experts around the globe.

Core Competency

Skills a company can do best.

Lack of Control Over the Supplier

A risk of supply chain management where a company losses control over a product by allowing another company to produce their products.

Intellectual Property Loss

A risk of supply chain management where a manufacturer divulges formulas or technologies to a third party, to a supplier.

Globalization

When domestic production and exporting are no longer a viable business model to assure profitability in the marketplace.

Zara's Strategy

A competitive strategy that is highly responsive to changing trends in the market with affordable prices.

Reasons for Globalization

Reducing costs, improving the supply chain, providing better goods and services, understanding markets better, learning from competitors and improving operations, and attract and retain global talent in the system.

Improving the Supply Chain

Locating facilities in countries where unique resources are available.

Providing Better Goods and Services

A company opens bottling factory in every single market they serve customers.

Strategy

Long term plan that determines the direction for an organization to achieve its mission and become or remain competitive.

Operations Strategy

Long term plans from the operations management perspective related to products, processes, cost, delivery times, etc.

Operations Management Mission for Mercedes

Design and produce products and services with outstanding quality and inherent customer value.

Toyota OEM Mission

Achieve low investment in inventory consistent with high customer service levels.

Competitive Strategy

A firm's competitors set of customer needs that should be satisfied through products and services.

Differentiation

A firm decides to be different from the competitors in the market.

Cost Leadership

A firm follows to reduce costs.

Responsiveness

A firm takes responsibility as a competitive capability to be successful in the marketplace.

Measuring Productivity

A way to measure how good the system is working over time to address the process satisfying customer needs.

Productivity

The value of outputs (services or products) divided by the values of input resources.

Productivity Growth

Current productivity minus previous productivity divided by previous productivity.

Single Factor Productivity

Interested to see the productivity for a specific unit of input like a labor, like capital invested, like equipment, machinery or even the energy.

Total Productivity

Measuring the total productivity of the system considering all the inputs.

Multi Factor Productivity

Only makes sense if all the inputs are expressed in the same unit, usually a monetary unit such as dollars.

Focus Strategy

When a firm provides a uniquely tailored product or service to a group of customers; a niche.

Sustainable Competitive Advantage

Capabilities not easily replicated by competitors.

Mission

An organization's reason for existence.