Chapter 16 - Project Management

Operations strategy

The plan that specifies the design and use of resources to support the business strategy.

Business strategy

A long-term plan that sets the overall goals and direction of an organization.

Functional strategies

Plans for each business function (marketing, operations, finance, etc.) to support the business strategy.

Global strategy

A strategy that considers worldwide markets and operations to gain competitive advantage.

Competitive priorities

The critical dimensions that a process or supply chain must possess to satisfy internal or external customers.

Cost

A competitive priority focused on delivering products or services at the lowest possible price.

Quality

A competitive priority focusing on producing superior products or services.

Time

A competitive priority that emphasizes fast delivery, responsiveness, or speed to market.

Flexibility

A competitive priority that emphasizes the ability to offer a wide variety of products or adjust to changes.

Productivity

The ratio of output produced to the input used.

Partial productivity

A productivity measure that uses a single input (e.g., labor productivity).

Multifactor productivity

A productivity measure that includes multiple inputs (e.g., labor, material, capital).

Total productivity

A productivity measure that considers all inputs used to produce output.

Order qualifier

A characteristic that allows a product to be considered for purchase.

Order winner

A characteristic that causes a product to be selected over competitors.

Core competencies

Unique strengths that provide a competitive edge and are hard to imitate.

Trade-offs

The balancing act between competing priorities like cost, quality, and flexibility.

Sustainability

Meeting present needs without compromising the ability of future generations to meet their needs.

Triple bottom line

A focus on three performance measures: economic, environmental, and social.

Operations and supply chain strategy

The long-term plan for using operations resources to support business strategy.

Strategic alignment

Ensuring that all areas of the organization are working toward the same goals and priorities.