Ops midterm

operations and supply chain management

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

processes

One or more activities that transform inputs into outputs.

planning

consists if the processes needed to operate an existing supply chain strategically

sourcing

involves the selection of suppliers that will deliver the goods and services needed to cheat the firm’s product.

making

where the major product is produced or the service is provided.

delivering

also referred to as logistics processes. Carriers are picked to move products to warehouses and customers, coordinate and schedule the movement of goods and information through the supply network, develop and operate a network of warehouses, and run the information systems that manage the receipt of orders from customers and the invoicing systems that collect payments from customers.

returning

involves processes for receiving worn-out, defective, and excess products from customers and support for customers who have problems with delivered products.

5 differences between services and goods

1. service is an intangible process

2. a service requires some degree of interaction with the customer for it to be service

3. services are inherently heterogenous and can vary from day to day

4. services can’t be stored and are time dependent

5. the specifications of a service are defined and evaluated as a package of design features that affect customer perceptions. These features relate to the location, decoration, and layout of the facility, for example. Other features relate to the training and attitude of employees, and the consistency of service performance. Speed, privacy, and security are other features that define a service.

the goods services continuum

product service bundling

When a firm builds service activities into its product offerings to create additional value for the customer.

efficiency

A ratio of the actual output of a process relative to some standard. Also, being “efficient” means doing something at the lowest possible cost.

effectiveness

Doing the things that will create the most value for the customer.

value

The attractiveness of a product relative to its price.

manufacturing strategy

Emphasizes how a factory’s capabilities could be used strategically to gain advantage over a competing company.

just in time production

An integrated set of activities designed to achieve high-volume production using minimal inventories of parts that arrive exactly when they are needed.

total quality control

Aggressively seeks to eliminate causes of production defects.

lean manufacturing

To achieve high customer service with minimum levels of inventory investment.

total quality management

Managing the entire organization so it excels in all dimensions of products and services important to the customer.

business process reengineering

An approach to improving business processes that seeks to make revolutionary changes as opposed to evolutionary (small) changes.

six sigma

A statistical term to describe the quality goal of no more than 3.4 defects out of every million units. Also refers to a quality improvement philosophy and program.

supply chain management

to apply a total system approach to manage the flow of information, materials and services from raw material suppliers through factories and warehouses to the end customer.

mass customization

The ability to produce a unique product exactly to a particular customer’s requirements.

electronic commerce

The use of the Internet as an essential element of business activity.

sustainability

The ability to meet current resource needs without compromising the ability of future generations to meet their needs.

triple bottom line

Evaluating the firm against social, economic, and environmental criteria.

business analystics

The use of current business data to solve business problems using mathematical analysis.

future challenges in OSCM

1. risk management and supply chain resilience

2. AI and advanced technologies

3. cross border logistics and trade compliance

4. sustainability and environmental concerns

5. talent management

end of introduction

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