Term
|
Definition
| network of facilities and processes that describes the flow of goods, services, information, and financial transactions from suppliers thru the facilities and processes that create goods and services and deliver them to the customer |
|
|
Term
|
Definition
| perception of the benefits of a good, service, or bundle of goods and services (i.e. customer benefits pkg) in relation to what buyers are willing to pay for them |
|
|
Term
| how to increase value (3) |
|
Definition
1. increase perceived benefits while holding price or cost constant
2. increase perceived benefits while reducing price or cost
3. decrease price or cost while holding perceived benefits constant |
|
|
Term
|
Definition
| competitively dominant customer experience |
|
|
Term
|
Definition
| suppliers >> inputs >> process network >> goods/services outputs >> postsale services |
|
|
Term
| gaining a customer services |
|
Definition
preproduction services:
-good and service design
-supplier services
-purchasing services
-contract negotiations
-financing
-good and service guarantees
-consulting services
-edu/training services
-sales/mktg svc |
|
|
Term
|
Definition
production process:
-create good/service
-process type and capability
-good/service characteristics
-price/cost, quality, time, safety, flexibility, innovation/learning, market/financial performance
-value/productivity |
|
|
Term
| keeping a customer services |
|
Definition
postproduction services
-servicing loans/financing
-installation, maintenance, field repair svc
-transportation svc
-warranty/claims
-training
-postsale visits
-consulting/tech svc
-recycle/remanufacture
-warehouse/invent. mgmt |
|
|
Term
|
Definition
| portion of the value chain that focuses primarily on the physical movement of goods/materials, and supporting flows of info and fin. transactions thru the supply, production, and dist. process |
|
|
Term
|
Definition
| suppliers >> manufacturer >> customer distributer >> retail PoS |
|
|
Term
| operational structure of value chain |
|
Definition
configuration of resources such as suppliers,
factories,
warehouses,
distributers,
tech support,
engin. design and sales offices,
communication links |
|
|
Term
|
Definition
| process of acquiring and consolidating elements of value chain to achieve more control |
|
|
Term
|
Definition
| process of having suppliers provide goods/svc that were previously provided internally; opposite of vertical integration |
|
|
Term
|
Definition
1. goods-producing jobs
2. simple services work
3. skilled knowledge work |
|
|
Term
|
Definition
| acquiring capabilities at front end of supply chain (eg. suppliers) |
|
|
Term
|
Definition
| acquiring capabilities toward back end of supply chain (distributers, customers) |
|
|
Term
|
Definition
| process of managing info, physical goods/svc to ensure availability at the right place, time, cost, quantity, with highest attention to quality |
|
|
Term
|
Definition
| building, acquiring, moving of process capabilities from a domestic location to another country location while maintaining ownership and control |
|
|
Term
| issues to consider when making offshore decisions |
|
Definition
low labor costs
low import duties/fees
lower cap costs
grow global mkt share
avoid natl currency fluctuations
preempt competitors from entering global mkts
hire worldwide skills/knowledge workers
build robust value chain ntwks for global mkts
build relationships w/ govt officials
negative impact/media attention
intellectual property loss
lose control of key processes
develop secure srces of supply/reduce risks
build relationships w/ suppliers
political instability
lack of communication/tech skills
learn fgn mkts/cultures |
|
|
Term
| categories of performance measures |
|
Definition
financial
customer/mkt
safety
quality
time
flexibility
innovation/learning |
|
|
Term
| financial performance measures |
|
Definition
organizational-level:
-revenue/profit
-return on assets
-earnings/share
operational-level:
-labor/material costs
-cost of quality
-budget variance |
|
|
Term
| customer/market performances measures |
|
Definition
organizational-level:
-customer satisfaction
-customer retention
-market share
operational-level:
-customer claims and complaints
-type of warranty failure
-sales forecast accuracy |
|
|
Term
| safety performances measures |
|
Definition
organizational-level:
-number of accidents/injuries
-lost workdays
operational-level:
-safety audit score
-workplace safety violations |
|
|
Term
| quality performances measures |
|
Definition
organizational-level:
-goods quality
-service quality
-environmental quality
operational-level:
-defects/unit
-call center courtesy
-toxic waste discharge rate |
|
|
Term
| time performances measures |
|
Definition
organizational-level:
-speed
-reliability
operational-level:
-flow (process/cycle) time
-percent of time meeting promise (due) date |
|
|
Term
| flexibility performances measures |
|
Definition
organizational-level:
-design flexibility
-volume flexibility
operational-level:
-number of engineering changes
-assembly line changeover time |
|
|
Term
| innovation/learning performances measures |
|
Definition
organizational-level:
-new product development rates
-employee satisfaction
-employee turnover
operational-level:
-number of patent applications
-number of improvement suggestions implemented
-percent of workers trained on statistical process control |
|
|
Term
| customer satisfaction measurement system |
|
Definition
| customer ratings of specific goods and features and indicates relationship btwn ratings and future buying behavior |
|
|
Term
|
Definition
| degree to which output of a process meets customer requirements |
|
|
Term
|
Definition
external focus: consistently meeting customer expectations
internal focus: service delivery system performance |
|
|
Term
| 5 key dimensions of service quality |
|
Definition
1. tangibles (appearance)
2. reliability (consistently deliver)
3. responsiveness (prompt attention)
4. assurance (trust and confidence)
5. empathy (caring attitude) |
|
|
Term
|
Definition
| time it takes to perform some task |
|
|
Term
|
Definition
|
|
Term
|
Definition
| ability to adapt quickly and effectively to changing requirements |
|
|
Term
| goods/svc design flexibility |
|
Definition
| ability to develop wide range of customized goods or services to meet difference or changing customer needs |
|
|
Term
|
Definition
| ability to respond quickly to changes in the volume and type of demand |
|
|
Term
|
Definition
| ability to create new and unique goods/svc that delight customers and create competitive advantage |
|
|
Term
|
Definition
| creating, acquiring, and transferring knowledge, and modifying the behavior of employees in response to internal and external change |
|
|
Term
|
Definition
| ratio of output to input quantity |
|
|
Term
|
Definition
quantitative modeling of cause and effect relationships between external and internal performance criteria
(eg. customer satisfaction rating (ext) to time on hold rating (int) is inverse) |
|
|
Term
| value of a loyal customer (VLC) |
|
Definition
quantifies the total revenue or profit each target market customer generates over the buyer's life cycle
VLC = (P)(RF)(CM)(BLC)
BLC = 1/customer defection rate |
|
|
Term
|
Definition
| provide basis for decisions at the level at which they are applied |
|
|
Term
| MBNQA Criteria for Performance Excellence |
|
Definition
1. Leadership
2. Strategic Planning
3. Customer Focus
4. Measurement, analysis, knowledge measurement
5. Workforce Focus
6. Process Management
7. Business Results |
|
|
Term
| Balanced Scorecard Performance Perspectives |
|
Definition
1. Financial
2. Customer
3. Innovation and Learning
4. Internal |
|
|
Term
| Value Chain Performance Measurements |
|
Definition
1. Suppliers: quality, price, delivery, service
2. Inputs: conformance to specs, accuracy, quantity
3. Process Network: Efficiency, cost, reliability, productivity, cycle time, rework, service encounters, flexibility
4. Goods/svc outputs: customer satisfaction, price, goods quality, svc quality, timeliness
Management: ALL + market share, growth, loyalty, revenue per tgt mkt
OVERALL: ACHIEVEMENT OF STRATEGIC OBJECTIVES |
|
|
Term
| Service Profit Chain Model |
|
Definition
employees create customer value and drive profitability
internal svc qual >> employee satisfaction >> emp rtntn + emp prod >> external svc value >> customer satisfaction >> customer loyalty >> revenue growth + profitability |
|
|
Term
|
Definition
| ability to achieve market and financial superiority over competitors |
|
|
Term
| 3 classes of customer requirements |
|
Definition
1. dissatisfiers: requirements that are expected
2. satisfiers: requirements that customers say they want
3. Exciters/delighters: new/innovative goods/svc features that customers do not expect |
|
|
Term
|
Definition
| dissatisfiers, satisfiers |
|
|
Term
|
Definition
| goods and service features/performance characteristics that differentiate one customer benefit pkg from another, win customer's business |
|
|
Term
|
Definition
| those that a customer can determine prior to purchasing the good or service (color, price, etc) |
|
|
Term
|
Definition
| those that can be discerned only after purchase or during consumption or use (taste, safety, fun) |
|
|
Term
|
Definition
| aspects that customer must believe in, but cannot personally evaluate even after purchase and consumption (knowledge, expertise) |
|
|
Term
|
Definition
strategic emphasis that a firm places on certain performance measures and operational capabilities with a value chain
1. cost
2. quality
3. time
4. flexibility
5. innovation |
|
|
Term
|
Definition
| able to make whatever goods and services the customer wants, at any volume, at any time for anybody. For a global organization, from any place in the world |
|
|
Term
| innovation (in competitive priorities) |
|
Definition
| the discovery and practical application or commercialization of a device, method, or idea that differs from existing norms |
|
|
Term
|
Definition
| pattern or plan that integrates an organization's major goals, policies, and action sequences into a cohesive whole |
|
|
Term
|
Definition
| strengths that are unique to an organization |
|
|
Term
|
Definition
| defines how an organization will execute its chosen business strategies |
|
|
Term
| operations design choices |
|
Definition
| decisions management must make as to what type of process structure is best suited to produce goods and create services |
|
|
Term
|
Definition
| the nonprocess features and capabilities of the organization and includes the workforce, operating plans and control systems, quality control, organizational structure, compensation systems, learning and innovation systems, and support services |
|
|
Term
| Hill's strategy development framework |
|
Definition
Corporate Objectives
Marketing Strategy
Competitive Priorities
Operations Design Choices
Infrastructure |
|
|
Term
| Goods/Svcs Development Process |
|
Definition
1. Strategic Mission/Vision
2. Strategic and Market Analysis, understand competitive priorities
3. Customer Benefit Pkg Design
4. Detailed Goods, Svc, Process Dsgn
4a.
g. manufactured good design + dvpmt
s. svc and svc delivery system dsgn
4b.
g. process selection/dsgn
s. service encounter dsgn
5. Market Intro/Deployment
6. Marketplace Evaluation |
|
|
Term
| Customer Benefit Package Design Elements |
|
Definition
Time
Place
Information
entertainment
exchange
form |
|
|
Term
|
Definition
| goods that are insensitive to external forces of variation |
|
|
Term
|
Definition
assumes that the smaller the variation about the nominal spec, the better the quality. products are more consistent, total costs are less. quality = variation from target value of design spec.
L(x) = k(x - T)^2 |
|
|
Term
|
Definition
| produced and delivered as one-of-a-kind or in small quantities, meet customer specs |
|
|
Term
| option (assemble to order) |
|
Definition
| configurations of standard parts, subassemblies, or services that can be selected by customers from a limited set |
|
|
Term
|
Definition
| made according to a fixed design, customer has no options |
|
|
Term
| 4 types of processes to produce goods/svc |
|
Definition
1. projects
2. job shop processes
3. flow show processes
4. continuous flow processes |
|
|
Term
|
Definition
| large scale customized initiatives that consist of many smaller tasks and activities that must be coordinated and completed to finish on time and within budget |
|
|
Term
|
Definition
| organized around particular types of general purpose equipment that are flexible and capable of customizing work for indiv customers |
|
|
Term
| continuous flow processes |
|
Definition
| create highly standardized goods or services, usually around the clock in very high volumes |
|
|
Term
|
Definition
| organized around a fixed sequence of activities and process steps, such as an assembly line, to produce a limited variety of similar goods/svc |
|
|
Term
|
Definition
| model that describes the alignment of process choice with characteristics of manufactured good |
|
|
Term
|
Definition
| unique route thru a svc system |
|
|
Term
|
Definition
| those that offer customers broad freedom to select the pathways that are best suited for their immediate needs and wants from many possibly pathways through the service delivery system |
|
|
Term
|
Definition
| constrain customers to follow a very small number of possible and predefined pathways through the service system |
|
|
Term
| svc encounter activity sequence |
|
Definition
| consists of all the process steps and associated svc encounters necessary to complete a svc transaction and fulfill a customer's wants and needs |
|
|
Term
| Service Positioning Matrix |
|
Definition
x-axis : repeatability
y-axis : number of pathways |
|
|
Term
|
Definition
| characterization of product growth, maturity, and decline over time |
|
|
Term
| process design levels (4) |
|
Definition
1. Task: specific unit of work
2. Activity: group of tasks >> final output
3. Process: group of activities
4. Value Chain: network of processes |
|
|
Term
| process design activities (6) |
|
Definition
1. Define purpose/objective of process
2. Create process map of current performance (baseline map)
3. Evaluate alternatives (future state maps)
4. identify performance measures for process
5. select equipment/technology
6. develop implementation plan (chose performance criteria) |
|
|
Term
|
Definition
| describes the sequence of all process activities and tasks necessary to create and deliver a desired output |
|
|
Term
|
Definition
| all value-added activities involved in designing, producing, and delivering goods and svcs to customers |
|
|
Term
| strategies to improve process design (5) |
|
Definition
1. increasing revenue
2. increasing agility
3. increasing product/svc quality
4. decreasing costs
5. decreasing process flow time |
|
|
Term
| key improvement questions |
|
Definition
1. Are the steps in logical sequence?
2. Do all steps add value? Eliminate? Combine? Reorder?
3. Are there bottlenecks/wait time?
4. What is required for each step?
5. Potential errors causing dissatisfaction? How to correct?
6. Performance measurement points?
7. positive image guidelines at customer interaction points? |
|
|
Term
|
Definition
| fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance (cost, quality, service, speed) |
|
|
Term
|
Definition
| fraction of time a workstation or individual is busy over the long run |
|
|
Term
|
Definition
| average number of entities completed per unit time - the output rate - from a process |
|
|
Term
|
Definition
| work activity that effectively limits throughput of the entire process |
|
|
Term
|
Definition
| average time it takes to complete one cycle of a process |
|
|
Term
|
Definition
| WIP = throughput * flow time |
|
|
Term
| distribution centers (DC) |
|
Definition
| warehouses that act as intermediaries between factories and customers, shipping directly to customers or retail stores where products are made available to customers |
|
|
Term
|
Definition
| refers to raw materials, WIPs, or finished goods that are maintained to support production or satisfy customer demand |
|
|
Term
| typical goods-producing supply chain structure |
|
Definition
| suppliers (RM) >> manufacturing plant (WIP) >> regional warehouse (FG) >> retail store (FG) >> customers |
|
|
Term
|
Definition
1. Plan
2. Source
3. Make
4. Deliver
5. Return |
|
|
Term
|
Definition
| firm that specializes in certain types of goods-producing activities, such as customized design, manufacturing, assembly, and packaging, and works under contract for end users |
|
|
Term
|
Definition
| designed for efficiency and low cost by minimizing inventory and maximizing efficiencies in process flow |
|
|
Term
|
Definition
| focus on flexibility and responsive service and are able to react quickly to changing market demand and requirements |
|
|
Term
|
Definition
| produces goods in advance of customer demand using a forecast of sales and moves them thru the supply chain to points of sale where they are stored as finished goods inventory |
|
|
Term
|
Definition
| produces only what is needed at upstream stages in the supply chain in response to customer demand signals from downstream stages |
|
|
Term
|
Definition
| points that separates push from pull |
|
|
Term
|
Definition
| delaying product customization until product is closer to the customer at the end of the supply chain |
|
|
Term
|
Definition
| process of managing geographically dispersed svc-providing facilities |
|
|
Term
|
Definition
| phenomenon that occurs when each member of a supply chain "orders up" to buffer its own inventory (causes bullwhip effect) |
|
|
Term
|
Definition
delivery reliability
responsiveness
customer-related
supply chain efficiency
financial |
|
|
Term
|
Definition
| capability of a manufacturing or svc resource to accomplish its purpose over a specified time period |
|
|
Term
|
Definition
| achieved when average unit costs of good/svc decreases as the capacity or volume of thruput increases |
|
|
Term
|
Definition
| average unit cost of good/svc increases as the capacity/thruput increases |
|
|
Term
|
Definition
| way to achieve economics of scale without extensive investments in facilities and capacity by focusing on a narrow range of goods/svcs, target market segments, and/or dedicated process to maximize efficiency and effectiveness |
|
|
Term
| safety capacity/capacity cushion |
|
Definition
amount of capacity reserved for unanticipated events such as demand surges, materials shortages, and equipment breakdowns
avg safety capacity % = 100 % - avg resource utilization % |
|
|
Term
|
Definition
| goods and services that can be produced or delivered using the same resources available to the firm, but whose seasonal demand patterns are out of phase with each other (Honda example) |
|
|
Term
| 4 Capacity Expansion Strategies |
|
Definition
1. one large capacity increase
2. small capacity increases that match average demand
3. small capacity increases that lead demand
4. small capacity increases that lag demand |
|
|
Term
| short-term capacity adjustments |
|
Definition
add or share equipment
sell unused capacity
change labor capacity
change labor skill mix
shift work to slack periods |
|
|
Term
|
Definition
| promise to provide a good/svc at some future time/place |
|
|
Term
| approaches to influence demand |
|
Definition
vary the price of goods or services
provide customers with information
advertising and promotion
add peripheral goods/svc
provide reservations |
|
|
Term
| revenue management system (RMS) |
|
Definition
| consists of dynamic methods to forecast demand, allocate perishable assets across market segments, decide when to overbook and by how much, and determine what price to charge different customer (price) classes |
|
|
Term
| theory of constraints (TOC) |
|
Definition
| set of principles that focus on increasing total process thruput by maximizing utilization of all bottleneck work activities and workstations |
|
|
Term
|
Definition
| amount of money generated per time period through actual sales |
|
|
Term
|
Definition
| anything in an organization that limits it from moving toward or achieving its goal |
|
|
Term
|
Definition
| associated with the capacity of a resource such as a machine, employee, or workstation |
|
|
Term
| TOC bottleneck (BN) work activity |
|
Definition
| one that effectively limits the capacity of the entire process |
|
|
Term
| TOC nonbottleneck (NBN) work activity |
|
Definition
| one in which idle capacity exists |
|
|
Term
| TOC nonphysical constraint |
|
Definition
| environmental or organizational, such as low product demand or an inefficient management policy or procedure |
|
|
Term
|
Definition
| length of time on which a forecast is based |
|
|
Term
|
Definition
| unit of measure of the time period used in a forecast |
|
|
Term
|
Definition
| set of observations measured at successive points in time or over successive periods of time |
|
|
Term
|
Definition
| underlying pattern of growth or decline in a time series |
|
|
Term
|
Definition
| repeatable periods of ups and downs over short periods of time |
|
|
Term
|
Definition
| regular patterns in a data series that take place over long periods of time |
|
|
Term
|
Definition
| (noise) unexplained deviation of a time series from a predictable pattern, such as a trend, seasonal, or cyclical pattern |
|
|
Term
|
Definition
| a one-time variation that is explainable |
|
|
Term
|
Definition
difference between observed value of the time series and the forecast
At - Ft |
|
|
Term
|
Definition
| based on the assumption that the future will be an extrapolation of the past |
|
|
Term
| moving average (MA) forecast |
|
Definition
| average of most recent "k" observations in a time series |
|
|
Term
| single exponential smoothing (SES) |
|
Definition
| forecasting technique that uses a weighted average of past time-series values to forecast the value of the time series in the next period |
|
|
Term
|
Definition
| planning, execution, and control of all the resources that are used to produce goods or provide services in a value chain |
|
|
Term
|
Definition
| development of long term output and resource plan in aggregate units of measure |
|
|
Term
|
Definition
| translating aggregate plans into short term ops plans that provide the basis for weekly and daily schedules and detailed resource requirements |
|
|
Term
|
Definition
| moving work form one workstation to another, assigning people to tasks, setting priorities for jobs, scheduling equipment, and controlling processes |
|
|
Term
| resource mgmt planning framework |
|
Definition
| forecasting >> aggregate planning >> Are resources ok? >> disaggregation >> execution |
|
|
Term
| aggregate planning decision options |
|
Definition
demand management
production rate
workforce
inventory
facilities, equipment, and transportation |
|
|
Term
| level production strategy |
|
Definition
| plans for the same production rate in each time period |
|
|
Term
|
Definition
| sets the production rate equal to the demand in each time period |
|
|
Term
| master production scheduling (MPS) |
|
Definition
| statement of how many finished items are to be produced and when they are to be produced |
|
|
Term
|
Definition
| Aggregate Planning >> Master production scheduling >> materials requirements planning >> capacity requirements planning >> is capacity ok? >> authorized MPS and MRP production plans >> detailed resource schedule and sequencing + inputs to budgets, financing, cash flow analysis |
|
|
Term
|
Definition
| defines the quantity and timing for assembling subassemblies and component parts into a final finished good |
|
|
Term
|
Definition
| any episodes, transactions, or experiences in which a customer comes into contact with any aspect of the delivery system, however remote, and thereby has an opportunity to form an impression |
|
|
Term
|
Definition
| CBP feature that departs from the standard CBP and is normall location- or firm-specific |
|
|
Term
|
Definition
| sequence of activities intended to create a certain result |
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|
