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| The Operational Challenge |
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Definition
| Should be solved by implementing systems that are repeatable, consistent and reliable |
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Term
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| -is a framework used to analyze a firm's internal resources and capabilities to find out if they can be a source of sustained competitive advantage. Term VRIO comes from the words value, rarity, imitability and organization |
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Term
| the VRIO framework is also... |
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Definition
| an internal analysis that helps businesses identify the advantages and resources that give them a competitive edge. |
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| Product Innovations, Process Innovations, Position innovations, Paradigm innovations |
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| These are the changes in the things that the organization offers for sale. Such innovations enhance the utility of the physical product or the service offering, making the customer more likely to buy them. |
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| these are the changes in the processes that create the product that is sold |
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| These are the changes in the way the product or service offering is targeted. Put another way, it is the targeting of a product or service at a different use or customer base |
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| These are the changes in how companies might frame what they do. |
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Term
| What 4 theories are used in this paper? |
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Definition
| 1. Transaction cost analysis (TCA), 2. Principal-agent theory (PAT), 3. The network Theory (NT) and 4. the Resource-based view (RBV) |
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Term
| What do these 4 theories do? (lav selv kort med mere deskriptive definitioner) |
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Definition
| The PAT stresses issues of inter-firm contracting and ultimately the notion of supply chain transparency. The TCA considers hybrids such as integrated supply chains as the result of a market failure, NT and the RBV see the supply chains as a means to access resources and competencies outside the focal firm. |
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Term
| Transaction Cost Economics (TCE) |
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Definition
| – an economic explanation for the existence and scope of a commercial organization. TCE is based on the interplay of four behavioral assumptions; bounded rationality, opportunism, asset specificity and uncertainty. |
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Term
| Resourced-based view (RBV) |
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Definition
| An organization theory that focuses on the internal resources of a single organization. RBV explains how competitive advantage within organizations is achieved and sustained over time. RBV assumes that each organization (i.e. a single legal autonomous entity) is thought of as a bundle of resources in its own right. |
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Definition
| the management of companies that have become so closely integrated that it is very difficult to think of them as networks of separate companies, or simple supply chains. |
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Term
| Supply base rationalization |
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Definition
| management practice that reduces the number of suppliers an organization has to deal with. The objective is often to reduce management costs and complexity. |
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Definition
relates to the ability to provide customized products or services through flexible processes in high volumes and at reasonably low costs.
- Mass customization appears as an alternative to differentiate companies in a highly competitive and segmented market. |
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Term
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Definition
| Platform strategy is basically a foundation for designs that can be used to build a large variety of products. It forms a structure from which a stream of derivative products can be developed. With a platform strategy, designs can be shared and reused, so that the designers don’t have to start from scratch each time they create a new product. |
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Term
| Many advantages are associated with platform strategy, including: |
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Definition
- Reduced development and manufacturing costs.
- Reduced incremental costs of addressing the specific needs of a market segment.
- Reduced fixed costs of developing individual product variants.
- Reduced development time.
- Reduced systemic complexity.
- Improved ability to upgrade products.
- Lowered investment risks.
- Greater degree of component and subsystems reuse.
- Increased responsiveness of partners and suppliers.
- Higher product variety offered to customers. |
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Definition
One of the main factors that influence the management of platforms is how to simplify the complex processes related to the platform.
- A system lacks modularity when a tweak to one of its components affects the functioning of others. |
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Term
| Modular Product Architectures |
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Definition
| enable firms to minimize the physical changes required to achieve a functional change |
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Term
| Integral product architectures |
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Definition
| modifications to any one component cannot be done without the redesign or reconfiguration of the other components, which can be expensive and time consuming |
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Term
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Definition
| Economic order quantity fixed order (or production) amount that minimizes the total costs over a whole year. |
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Term
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Definition
| purchase cost or production costs + ordering cost + holding cost |
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Term
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Definition
| This is the variable cost of goods: purchase unit price × annual demand quantity. This is P × D |
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Term
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Definition
| This is the cost of placing orders: each order has a fixed cost K, and we need to order D/Q times per year. This is K × D/Q |
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Term
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Definition
| Holding cost: the average quantity in stock (between fully replenished and empty) is Q/2, so this cost is h × Q/2 |
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Term
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Definition
- Assumptions that demand is constant
- Assumptions that we know the annual demand
- Assumptions that transportation and procurement costs and constant |
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Term
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Definition
represents the materials and finished products in the firm and supply chain. This includes:
- Raw materials – purchased but not processed.
- Work-in-process inventory – being worked on
- Maintenance / repair / operating supplies (MRO) – for the plant
- Finished goods inventory
– completed and waiting shipment
- Goods in transit – to warehouses and customers |
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Term
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Definition
| A lean system is a highly efficient process that produces products and services in the desired quantities, exactly when they are needed. Lean systems are an extension of the just in time (JIT) approach |
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Term
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Definition
- Waste elimination
- Synchronization
- behavior
- customer focus |
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Term
| muda, mura, and muri. What are these? |
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Definition
| Japanese words conveying three causes of waste |
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Term
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Definition
| planning waste due to the poor design or implementation of the system. It represents things such as having to move heavy weights or having to work harder than usual. The highly stressed lean system becomes more prone to variation, which generates waste. |
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Term
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Definition
| imbalance as a result of poor implementation of the design. Toyota tries to smooth production activities and eliminate fluctuation at the scheduling or operations level, such as quality and volume, and also imbalance within work tasks. |
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Term
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Definition
| non-value adding tasks. This has been the focus of attention for most lean advocates, who state that the role of management is to examine and reduce muda. This is where the practice of removing waste is most evident. |
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Term
| 5s lean implementation framework |
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Definition
| This is a program for reorganizing the workspace and workflow to improve efficiency by eliminating waste. 5S is an effective way to apply lean ideas to both production and service activities. |
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Term
| what are the 5s's in the lean implementation framework? |
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Definition
1. Sort (seiri): remove unnecessary items from the workplace
2. Set in order (seiton): efficient and effective storage methods, including painted floors, and marked-off work areas, so that workers do not waste time looking for things.
3. Shine (seiso): make the workplace clean, so that things remain in place, and employees take pride in the area and in their work.
4. Standardize (seiketsu): encourage all employees in sharing and developing standardized best practices.
5. Sustain (shitsuke): the last step – continue to follow the other Ss. |
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Term
| Customer focus: overall lean principles |
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Definition
1. Value: specify what creates value from the customers perspective
2. Value stream: identify all steps across the whole value stream
3. Flow: makes those actions that create value flow
4. Pull: only make what is pulled by the customer just-in-time
5. Perfection: strive for perfection by continually removing successive layers of waste |
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Term
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Definition
any activity or benefit that one party can offer to another that is essentially intangible, and does not result in the ownership of anything. The production, delivery and consumption of services all take place at the same time.
Services are also perishable: that is, they cannot be stored. |
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Term
| Elements of the service delivery system: |
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Definition
- Strategic service design choices
- Service delivery system execution, renewal and assessment
- Customer-perceived value of the total service concept |
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Term
| in order for PMS (Performance management system) to work properly, 5 components are important: |
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Definition
1. Understand your model for success
2. Identify performance measures for success
3. Cascade the performance measures and their application
4. Establish performance reporting for relevant measures
5. Coach, incentivize and reward success with a transparent approach. |
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Term
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Definition
1. It can provide capacity ahead of the forecast, so that it is ready to respond immediately. This is known as a capacity leads demand strategy.
2. It can provide capacity as demand changes, so that it expands and contracts its capacity to follow demand. This is a capacity matches demand strategy.
3. It can wait to see what demand is, and then respond after it is confirmed. This is a capacity lags demand strategy. |
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