Operations Management Flashcards

Flashcards covering key vocabulary and concepts from the Introduction to Operations Management lecture.

Operations Management

The systematic design, direction, and control of processes that transform inputs into services and products for internal, as well as external, customers.

Supply Chain Management

The synchronization of a firm’s processes with those of its suppliers and customers to match the flow of materials, services, and information with customer demand.

Operations Management

Science and art of ensuring that goods and services are created and delivered successfully to customers including the design, day-to-day management, and continual improvement of processes.

Efficiency in Operations Management

A core issue in operations management, focused on optimizing resource utilization.

Cost in Operations Management

A core issue in operations management, aimed at minimizing expenses.

Quality in Operations Management

A core issue in operations management, ensuring goods and services meet required standards.

Good

Physical product that a person can see, touch, or consume.

Durable good

Product that does not quickly wear out and lasts at least three years.

Non-durable good

Perishable and lasts for less than three years.

Service

Primary or complementary activity that does not directly produce a physical product.

Service Management

Integrates marketing, human resources, and operations functions to plan, create, and deliver goods and services and deal with service encounters.

Moments of truth

Episodes, transactions, or experiences in which a customer comes into contact with any aspect of the delivery system.

Customer Benefit Packages (CBP)

Clearly defined set of tangible and intangible features that the customer recognizes, pays for, uses, or experiences.

Primary good or service

Core offering that attracts customers and responds to their basic needs .

Peripheral goods or services

Core offering that are not essential to the primary good or service, but enhance it.

Variant

CBP attribute that departs from the standard CBP and is normally location- or firm-specific.

Process

Sequence of activities that is intended to create a certain result; means by which goods and services are produced and delivered.

Core processes

Focused on producing or delivering an organization’s primary goods or services.

Support processes

Purchasing materials and supplies used in manufacturing and installation, managing inventory, health benefits and day care on-site services, technology acquisition and research and development.

General management processes

Accounting and information systems, human resource management, and marketing.

Operations Strategy

Specifies the means by which operations implements corporate strategy and helps build a customer-driven firm.

Competitive Priorities

The critical dimensions that a process or supply chain must possess to satisfy its internal or external customers, both now and in the future.

Competitive capabilities

The cost, quality, time, and flexibility dimensions that a process or supply chain actually possesses and is able to deliver.

Order Winners

The criterion customers use to differentiate the services or products of one firm from those of another.

Order Qualifiers

The minimum level required from a set of criteria for a firm to do business in a particular market segment.

Sustainability

Organization’s ability to strategically address current business needs and develop a long-term strategy that embraces opportunities and manages risk for products, systems, supply chains, and processes to preserve resources for future generations.

Environmental sustainability

Organization’s commitment to the long-term quality of the environment.

Social sustainability

Organization’s commitment to maintain healthy communities and a society that improves the quality of life.

Economic sustainability

Organization’s commitment to address current business needs and economic vitality as well as have agility and strategic management to prepare successfully for future business, markets, and operating environments.

Business analytics

Process of transforming data into actions through analysis and insights in the context of organizational decision making and problem solving.