BA 311 Operations Management - Modules 1-3 Vocabulary Flashcards

Vocabulary practice flashcards covering basic concepts, formulas, and frameworks from Modules 1 through 3 of BA 311 Operations Management.

Operations Management

The science and art of ensuring goods and services are created and delivered successfully to customers.

Durable Good

A product that typically lasts at least three years, such as a vehicle or home appliance.

Maintainability

In the concept of quality, the ease with which a product can be repaired to retain its original condition.

Quality Revolution

An era of operations management most associated with Japan's push for continual improvement to open world markets.

Division of Labor

A concept introduced in Adam Smith's 1776 work "The Wealth of Nations" and later used in Henry Ford's assembly line.

Just-In-Time (JIT)

A system that focuses on producing what is necessary, when necessary, in necessary amounts.

Total Quality Management (TQM)

An ongoing process of detecting and reducing or eliminating errors.

Scientific Management

A historical period in the evolution of operations management paired with the early 1900s timeframe.

Value Chain

A network of facilities and processes that describes the flow of goods, services, information, and financial transactions from suppliers to customers.

Formula for Value

$$\text{Value} = \frac{\text{Perceived Benefits}}{\text{Price (cost) to the customer}}$$

Supply Chain

A network that is more internally focused on the creation of physical goods compared to a value chain.

Offshoring

Building, acquiring, or moving process capabilities to another country while maintaining ownership and control.

Outsourcing

Entrusting a business process to an outside vendor, allowing companies to focus on core areas of the business by freeing up time and resources.

Amazon (Cebu City)

The company cited for opening a customer service center in Cebu City in May 2018.

Measurement

In the context of operations, the act of quantifying the performance criteria of organizational units, goods, services, and processes.

Customer and Market Measures

A performance measure category that includes customer satisfaction, customer retention, and market share.

Productivity

The ratio of output of a process to the input, represented as $\text{Productivity} = \frac{\text{Output}}{\text{Input}}$

Baldrige Performance Excellence Framework

A model whose primary purpose is to provide a framework for performance excellence through self-assessment.

Balanced Scorecard Model

A framework introduced by Kaplan and Norton in the Harvard Business Review that translates strategy into measures across four perspectives: Financial, Customer, Innovation and Learning, and Internal.

Service-Profit Chain Model

A theory stating that employees, through the service delivery system, create customer value and drive profitability.

Order Qualifiers

Basic customer expectations considered the minimum performance level required to stay in business.

Mass Customization

The ability to make whatever goods and services the customer wants, at any volume, at any time, from any place.

Corporate Strategy

A strategy that defines the businesses in which a corporation will participate and how resources are allocated among them.

Innovation

The discovery and practical application of a device, method, or idea that differs from existing norms.

Strategic Business Units (SBUs)

Organizational units usually defined as families of goods or services with similar characteristics or methods of creation.