EXAM 1 Flashcards

the collections of people, technology, and systems within an organization that has primary responsibility for providing the organization's products or services

a network of manufacturers and service providers that work together to convert and move goods from the raw materials stage through to the end user

the planning, scheduling, and control of the activities into finished goods and services

activities or firms that are positioned earlier in the supply chain relative to some other activity or firm of interest

activities or firms that are positioned later in the supply chain relative to some other activity or firm of interest

a supplier that provides products or services directly to a particular firm

a supplier that provides products or services to a firm's first-tier supplier

the active management of supply chain activities and relationships in order to maximize customer value and achieve a sustainable competitive advantage

the use of IT solutions to automate business transactions; promises to improve the speed, quality, and cost of business communication

comprehensive model of the core management processes and individual process types that together define the domain of supply chain management

one of two major decision categories addressed by a strategy; includes tangible resources, such as buildings and equipment

one of two major decision categories addressed by a strategy; includes the policies, people, decision rules, and organizational structures choices made by a firm

the mechanisms by which businesses coordinate their decisions regarding structural and infrastructural elements

a statement that explains why an organization exits

the strategy that identifies the firm’s targeted customers and sets time frames and performance objectives for the business

organizational strengths or abilities, developed over a long period, that customers find valuable and competitors find difficult or even impossible to copy

translates a business strategy into specific actins for the functional areas such as marketing, human resources, and finance

a functional strategy that indicates how structural and infrastructural elements within the operations and supply chain areas will be acquired and developed to support the overall business strategies

a measure that uses the performance and importance scores for various dimensions for performance for an item or service to calculate a score that indicates the overall value of an item or service to a customer

the characteristics of a product or service that bear on its ability to satisfy stated or implied needs

a subdimension of quality, addressing the basic operating characteristics of the product or service

a subdimension of quality addressing whether the product was made or the service performed to specifications

a subdimension of quality addressing whether a product will work for a long time without failing or requiring maintenance

a performance dimension that refers to how quickly the operations or supply chain function can fulfill a need, once it has been identified

a performance dimension that refers to the ability to deliver products or services when promised

the acceptable time range in which deliveries can be made

a performance dimension that considers how quickly operations and supply chains can respond to the unique needs of different customers

the ability to produce a wide range of products or services

the ability to provide a new product with minimal delay

the ability to produce whatever volume the customer needs

the decision by a firm to emphasize one performance dimension over another, based on the recognition that superior performance on some dimensions may conflict with superior performance on others

performance dimensions that differentiate a company’s products and services from its competitors’; firms win the customer’s business by providing superior levels of performance on order winners

performance dimensions on which customers expect a minimum level of performance; superior performance on an order qualifier will not, by itself, give a company a competitive advantage

a business process that helps firms plan and coordinate operations and supply chain decisions over a tactical time horizon (usually 4 to 12 months)

planning that takes place at the highest levels of the firm, addressing needs that might not arise for years into the future

planning that covers a shorter period, usually four months to a year out, although the planning horizon may be longer in industries with very long lead times (such as engineer-to-order firms)

planning that covers time periods ranging from weeks, down to just a few hours out into the future

an approach to S&OP where a single, aggregated sales forecast drives the planning process; the mix of products and services must be essentially the same from one time period to the next, or they must have very similar resource requirements

an approach to S&OP that is used when the product/service mix is unstable and resource requirements vary greatly across the offerings; managers will need to estimate the requirements for each set of products or services separately and then add them up to get an overall picture of the resource requirements

values that decision makers use to translate the sales forecast into resource requirements and to determine the feasibility and costs of alternative sales and operations plans

a sales and operations plan in which production is held constant and inventory is used to absorb differences between production and the sales forecast

a sales and operations plan in which production is changed in each time period to match the sales forecast

a sales and operations plan that varies both production and inventory levels in an effort to develop the most effective plan

a display of future capacity requirements based on released and/or planned orders over a given span of time

the net flow of dollars into or out of a business over some time period

an approach commonly used by services with highly perishable "products," in which prices are regularly adjusted to maximize total profit

an estimate of the future level of some variable

1. Forecasts are almost always wrong
2. Forecasts for the near term tend to be more accurate
3. Forecasts for groups of products or services tend to be more accurate
4. Forecasts are no substitute for calculated values

forecasting techniques based on intuition or informed opinion; used when data are scarce not available, o irrelevant

structured questionnaires submitted to potential customers, often to gauge potential demand

a qualitative forecasting technique that has experts work individually to develop forecasts; individual forecasts are then shared among the group, after which each participant is allowed to modify his of her forecast based on information from the others; process is repeated until consensus is reached

quantitative forecasting models that use time series to develop forecasts

a time series forecasting model that derives a forecast by taking an average of recent demand values

a form of the moving average model that allows the actual weights applied to past observations to differ

a special form of the moving average model in which the forecast for the next period is calculated as the weighed average of the current period's actual value and forecast

a set of business processes, backed up by information technology, in which members agree to mutual business objectives and measures, develop joint sales and operational plans, and collaborate to generate and update sales forecasts and replenishment plans

highly automated batch processes that can reduce the cost of making groups of similar products

a type of manufacturing process used to produce a narrow range of standard items with identical or highly similar designs

a type of layout where resources are arranged sequentially according to the streps required to make a product

for a line process, the actual time off between completions of successive units on a production line

a type of manufacturing process that closely resembles a production line process

a type of manufacturing process used to make a wide variety of highly customized products in quantities as small as one; usually have general-purpose equipment and workers who are broadly skilled

a type of layout where resources are physically grouped by function

a type of manufacturing process where items are moved though the different manufacturing steps in groups

a type of manufacturing process in which the position of the product is fixed and materials, equipment, and workers are transported to and from the product (airplanes)

general term referring to manufacturing processes that seek to combine the characteristics, and hence advantages, of more than one of the classic processes

products that require no customization; generic products that are produced in large enough volumes to justify keeping a finished goods inventory

products that are customized only at the very end of the manufacturing process

products that use standard components, but the final configuration of those components is customer-specific

products that are designed and produced from the start to meet unusual customer needs or requirements; the highest level of customization

a set of logically related tasks or activities performed to achieve a defined business outcome

a process that addresses the main value-added activities of an organization

a process that performs necessary, albeit non-value-added, activities

a process that seeks to improve the performance of primary and support processes

the process of developing graphic representations of the organizational relationships and/or activities that make up a business process

a detailed map that identifies the specific activities that make up the informational, physical, and/or monetary flows of a process

a measure of process performance;
(actual output)/(effective capacity)

the total elapsed time need to complete a business process

the capability of a worker, machine, work center, plant, or organization to produce output per time period

a capacity strategy in which capacity is added in anticipation of demand

a capacity strategy in which capacity is added only after demand has materialized

a capacity strategy that strikes a balance between the lead and lag capacity strategies by avoiding periods of high under- or over utilization

a collection of firms that typically exists for only a short period

the output level at which two capacity alternatives generate equal costs

an approach to visualizing an managing capacity that recognizes that nearly all products and services are created through a series of linked processes, and in every case, there is at least one process step that limits throughput for the entire chain

the process step that limits throughput for an entire process chain

components or products that are receive in bulk by a downstream partner, gradually used up, and then replenished again in bulk by the upstream partner

extra inventory that companies hold to protect themselves against uncertainties in either demand or replenishment time

inventory that is held in anticipation of customer demand

a form of inventory buildup to buffer against some event that may not happen

inventory that is moving from one link in the SC to another

inventories used to smooth out differences between upstream production levels and downstream demand

business conditions that force companies to hold inventory

the risk of interruptions in the flow of components from upstream suppliers

the risk of significant and unpredictable fluctuations in downstream demand

inventory items with demand levels that are beyond a company's complete control

inventory items whose demand levels are ties directly to the company's planned production of another item

the order quantity that minimizes annual holding and ordering costs for an item

a set of tactical- and execution-level business activities that includes master scheduling, material requirements planning, and some form of production activity control and vendor order management

a detailed planning process that tracks production output and matches this output to actual customer orders

the company's best estimate of the demand in any period

confirmed demand for products

the amount of product that will be finished and available for the sale at the beginning of each week; drives more detailed planning activities, such as material requirements planning

a field in the master schedule record that indicates the number of units that are available for sale each week, given those that have already been promised to customers

a capacity planning technique that uses the master production schedule to monitor key resource requirements

a planning process that translates the master production schedule into planned orders for the actual parts and components needed to produce the master schedule items

inventory items whose demand levels are tied directly to the production of another item

a listing of all the subassemblies, intermediates, parts, and raw materials that go into a parent assembly showing the quantity of each required to make and assembly

a graphical rendering that shows how the components in the BOM are put together to make the Level 0 item

the time from when a component is ordered until it arrives and is ready to use

the process by which one works backwards from the master production schedule for a level 0 item to determine the quantity and timing of orders for the various subassemblies and components