OSCM Quiz 1 Terms

Operations Management

The management of processes used to design, supply, produce, and deliver valuable goods and services to customers

Key Customer

Critical to firm’s success and receives the firm’s focus

Value Proposition

Tangible and intangible “benefits” that customers expect from a firm

Capabilities

what a firm does well; defines types of problems a firm can proficiently address using processes

Process

A system of activities that transforms inputs into valuable outputs

Operations Management Process Types

1. Operational Planning Process

2. Design Process

3. Production Process

4. Evaluation Process

Operational Planning Process

Determines how the firm should compete. AKA Business model

Design Process

Develops new goods and services

Production Process

Plans and executes the supply, manufacture, and delivery of goods and services to customers.

Evaluation Process

Measures and reports how well they are meeting their goals or using their resources

Correct order of operational planning from long term to short term decisions

Strategic, Tactical, Operational

Strategic Planning

• Long-term decisions defining why and when objectives and capabilities are created.

• Product portfolio decisions, revenue
  targets, cost targets, C&B targets, investments, divestments

Tactical Planning

Intermediate-term decisions defining how and where capacity is used to meet demand.

Operational Planning

• What short-term priorities and schedules for resource allocation is used to meet demand. Answers What or Who

• Activities directed to meet tactical
  plan; inventory, suppliers to use, material requirements, transportation need

Supply Chain

A global network of organizations and activities involved in designing, transforming, consuming, and disposing of goods and services.

Supply Chain Management

The design and execution of relationships and flows that connect the parties and processes across the supply chain.

8 Key Supply Chain Management Processes

1. Inventory Management

2. Information Technology

3. Revenue Management

4. Global Procurement

5. Order Management

6. Logistics

7. Warehouseing & distribution

8. Towards Lean SCM

Globalization Has

Increased Supply Chain Management

Fast Innovators

• Get to market quickly

• React quickly to competitor's actions

• More continuous stream of product introductions

High-Quality Innovators

• Fewer issues launching products, and fewer failures

• Effectively satisfy customers for higher brand loyalty

Efficient Innovators

• Fund more new design and development projects

• Sell at lower prices, or have lower break-even
  quantities

Product Life Cycle

A pattern of sales, growth and decline over the period in which a product is offered

Product Life Cycle Order

1. Launch

2. Growth

3. “Shake Out”

4. Maturity

5. Decline

Growth

Increasing demand, flexible SC, more data from customers, increasing standardization

Shake Out

increased competition begins to drive down profits; actions taken to stabilize and drive market share.

Maturity

demand and product stabilization, increasing importance of cost, process innovation to increase efficiency

Architectural Innovation

Reconfigure a system’s architecture with new components or technology but leaves the core design the same.

Radical Innovation

Explores the newest technology with high market uncertainty. May require creating a new business model.

Incremental Innovation

Faster, better, cheaper technology or methods to
improve competitiveness in a market.

Disruptive Innovation

A process that transforms expensive or complicated products and services into simpler, more affordable options, making them accessible to others, eventually displace established market leaders.

Design Thinking Process Order

1. Empathize

2. Define

3. Ideate

4. Prototype

5. Test

Voice of Customer Methodologies

1. Survey

2. Focus Groups

3. Feedback request

4. Interviews

5. Social Media

6. Polls

7. 1 on 1 “what if” conversations

Net Promoter Score

A way to measure customer satisfaction and segregate your customers into 3 different groups.

• Promoters – favorable 9-10

• Neutrals – neither favorable or
  unfavorable 7-8

• Detractors – unfavorable 0-6

Project Management

The Stage-Gate process resources allocated on stage-by-stage completion. Upon completion of a stage and team approval, the stage gate closes, and a new
stage begins.

Concurrent Engineering

Simultaneous design and development of all the process and information needed to produce, sell, distribute, and service a product.

Design For The Customer

Use of multiple customer focused tools to ensure we capture their wants and needs

Design For Supply Chain and Operations

Use of multiple supply chain or product techniques to ensure manufacturing can make it and supply chain can ship it.

Benefits of ESI

• Increased sources of, and access to, ideas and opportunities, leading
  to higher quality

• Leveraging the expertise of others increases the number of successful
  launches, and reduces lead time

• Financial and legal risks are shared

Risks Of ESI

• Less control over intellectual property

• Partner dependency may lead to less control over goals and timing

Quality Function Deployment

Convert customer’s needs and wants into engineering specifications

Failure Modes and Effects Analysis (FMEA)

Identification and correction of potential problems

Value Engineering/Value Analysis

Improvement of benefits and costs through examination of functionality

Quality Function Development

a structured approach for integrating the ‘voice of the customer’ into both the
product and service development process. The purpose is to (attempt to) identify customer requirements are factored into every aspect of the product specifications.

QFD Matrix

Often referred to as the House of Quality, and integrates customer requirements, importance to the customer, and technical requirements.

Assembly

minimizing number of components and easing assembly processes

Product Servicability

Easing disassembly and component reuse

Six Sigma

Improving process consistency

Robust Design

Improving the design’s tolerance for variability

Logistics

Minimizing packaging, handling and shipping costs

Standardization

Reuse parts for existing designs

Modularity

Using combinations of standardized components

Design For Servicability

An engineering approach that ensures products can be easily inspected, maintained, repaired, and upgraded by using accessible layouts, modular components, and standardized interfaces, ultimately reducing downtime and total cost of ownership.

D4M-Sustainability

Minimize negative environmental impacts, across product life cycle