Operations Management and Supply Chain Concepts

A collection of flashcards covering key terms and concepts in operations management and supply chain management.

Operations Management

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

Supply Chain

A global network of organizations and activities involved in designing, producing, and delivering goods and services.

Goods

Tangible products that can be inventoried, with little customer contact and long lead times.

Services

Intangible offerings that cannot be inventoried, requiring customer interaction and having shorter lead times.

Total Product Experience

All outputs of an operation that define a customer’s complete consumption experience.

Core Capability

A unique set of skills that provides competitive advantages that rivals cannot easily duplicate.

Supply Chain Management

Design and execution of processes that connect parties across the supply chain.

Upstream Product Suppliers

Suppliers that provide raw materials and components for manufacturing.

Downstream Product Suppliers

Suppliers that enhance finished goods, such as assembly and packaging services.

Feedback/Measurement

Assessing and managing performance to capture lessons learned and focus on areas needing improvement.

Bottleneck

The constraining activity in a process that limits overall output.

Process Mapping and Analysis

A technique for documenting activities to understand processes and identify potential improvements.

Innovation

Both radical and incremental changes in processes and products.

Open Innovation

Developing new ideas from both internal sources and external networks.

Product Life Cycle

The stages a product goes through from introduction to decline, affecting operational capabilities.

Order Winners

Product traits that lead customers to choose a product over a competitor's offering.

Order Qualifiers

Minimum product traits like availability or price that must be met for consideration by customers.

Order Losers

Poor performance traits that can cause loss of current or future business.

Utilization

The percentage of process capacity that is actually used.

Theory of Constraints (TOC)

A management philosophy that emphasizes identifying and managing constraints to improve processes.

CAD (Computer-Aided Design)

Systems that automate aspects of the design process, particularly technical specifications.

CAE (Computer-Aided Engineering)

Tools linked to CAD systems that enhance design practices.

Innovation Portfolio Planning

Analyzes potential market shares and profitability among different customer segments.

Triple Bottom Line

The assessment of business performance based on profit, social impacts, and environmental impacts.

Effective Capacity

The level of output that can be sustained while accounting for disruptions.

Maximum Capacity

The highest output rate achievable under ideal conditions.

Flow Time

The total time it takes for one unit to pass through a process.

Cycle Time

The time that a unit spends being processed in an overall production process.

Radical Breakthrough Development Projects

Projects that develop processes or products using entirely new technology.