front 1 operations function | back 1 the collections of people, technology, and systems within an organization that has primary responsibility for providing the organization's products or services |
front 2 supply chain | back 2 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 |
front 3 operations management | back 3 the planning, scheduling, and control of the activities into finished goods and services |
front 4 upstream | back 4 activities or firms that are positioned earlier in the supply chain relative to some other activity or firm of interest |
front 5 downstream | back 5 activities or firms that are positioned later in the supply chain relative to some other activity or firm of interest |
front 6 first-tier supplier | back 6 a supplier that provides products or services directly to a particular firm |
front 7 second-tier supplier | back 7 a supplier that provides products or services to a firm's first-tier supplier |
front 8 supply chain management | back 8 the active management of supply chain activities and relationships in order to maximize customer value and achieve a sustainable competitive advantage |
front 9 e-commerce | back 9 the use of IT solutions to automate business transactions; promises to improve the speed, quality, and cost of business communication |
front 10 SCOR model | back 10 comprehensive model of the core management processes and individual process types that together define the domain of supply chain management |
front 11 structural elements | back 11 one of two major decision categories addressed by a strategy; includes tangible resources, such as buildings and equipment |
front 12 infrastructural elements | back 12 one of two major decision categories addressed by a strategy; includes the policies, people, decision rules, and organizational structures choices made by a firm |
front 13 strategies | back 13 the mechanisms by which businesses coordinate their decisions regarding structural and infrastructural elements |
front 14 mission statement | back 14 a statement that explains why an organization exits |
front 15 business strategy | back 15 the strategy that identifies the firm’s targeted customers and sets time frames and performance objectives for the business |
front 16 core competencies | back 16 organizational strengths or abilities, developed over a long period, that customers find valuable and competitors find difficult or even impossible to copy |
front 17 functional strategy | back 17 translates a business strategy into specific actins for the functional areas such as marketing, human resources, and finance |
front 18 operations and supply chain strategy | back 18 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 |
front 19 value index | back 19 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 |
front 20 quality | back 20 the characteristics of a product or service that bear on its ability to satisfy stated or implied needs |
front 21 performance quality | back 21 a subdimension of quality, addressing the basic operating characteristics of the product or service |
front 22 conformance quality | back 22 a subdimension of quality addressing whether the product was made or the service performed to specifications |
front 23 reliability quality | back 23 a subdimension of quality addressing whether a product will work for a long time without failing or requiring maintenance |
front 24 delivery speed | back 24 a performance dimension that refers to how quickly the operations or supply chain function can fulfill a need, once it has been identified |
front 25 delivery reliability | back 25 a performance dimension that refers to the ability to deliver products or services when promised |
front 26 delivery window | back 26 the acceptable time range in which deliveries can be made |
front 27 flexibility | back 27 a performance dimension that considers how quickly operations and supply chains can respond to the unique needs of different customers |
front 28 mix flexibility | back 28 the ability to produce a wide range of products or services |
front 29 changeover flexibility | back 29 the ability to provide a new product with minimal delay |
front 30 volume flexibility | back 30 the ability to produce whatever volume the customer needs |
front 31 trade-off | back 31 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 |
front 32 order winners | back 32 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 |
front 33 order qualifiers | back 33 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 |
front 34 sales and operations planning | back 34 a business process that helps firms plan and coordinate operations and supply chain decisions over a tactical time horizon (usually 4 to 12 months) |
front 35 strategic planning | back 35 planning that takes place at the highest levels of the firm, addressing needs that might not arise for years into the future |
front 36 tactical planning | back 36 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) |
front 37 detailed planning and control | back 37 planning that covers time periods ranging from weeks, down to just a few hours out into the future |
front 38 top-down planning | back 38 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 |
front 39 bottom-up planning | back 39 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 |
front 40 planning values | back 40 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 |
front 41 level production plan | back 41 a sales and operations plan in which production is held constant and inventory is used to absorb differences between production and the sales forecast |
front 42 chase production plan | back 42 a sales and operations plan in which production is changed in each time period to match the sales forecast |
front 43 mixed production plan | back 43 a sales and operations plan that varies both production and inventory levels in an effort to develop the most effective plan |
front 44 load profile | back 44 a display of future capacity requirements based on released and/or planned orders over a given span of time |
front 45 net cash flow | back 45 the net flow of dollars into or out of a business over some time period |
front 46 yield management | back 46 an approach commonly used by services with highly perishable "products," in which prices are regularly adjusted to maximize total profit |
front 47 forecast | back 47 an estimate of the future level of some variable |
front 48 laws of forecasting | back 48 1. Forecasts are almost always wrong
|
front 49 qualitative forecasting techniques | back 49 forecasting techniques based on intuition or informed opinion; used when data are scarce not available, o irrelevant |
front 50 market surveys | back 50 structured questionnaires submitted to potential customers, often to gauge potential demand |
front 51 Delphi method | back 51 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 |
front 52 time series forecasting models | back 52 quantitative forecasting models that use time series to develop forecasts |
front 53 moving average model | back 53 a time series forecasting model that derives a forecast by taking an average of recent demand values |
front 54 weighted moving average model | back 54 a form of the moving average model that allows the actual weights applied to past observations to differ |
front 55 exponential smoothing model | back 55 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 |
front 56 collaborative planning, forecasting, and replenishment (CPFR) | back 56 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 |
front 57 flexible manufacturing systems (FMSs) | back 57 highly automated batch processes that can reduce the cost of making groups of similar products |
front 58 production line | back 58 a type of manufacturing process used to produce a narrow range of standard items with identical or highly similar designs |
front 59 product-based layout | back 59 a type of layout where resources are arranged sequentially according to the streps required to make a product |
front 60 cycle time | back 60 for a line process, the actual time off between completions of successive units on a production line |
front 61 continuous line flow process | back 61 a type of manufacturing process that closely resembles a production line process |
front 62 job shop | back 62 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 |
front 63 functional layout | back 63 a type of layout where resources are physically grouped by function |
front 64 batch manufacturing | back 64 a type of manufacturing process where items are moved though the different manufacturing steps in groups |
front 65 fixed-position layout | back 65 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) |
front 66 hybrid manufacturing processes | back 66 general term referring to manufacturing processes that seek to combine the characteristics, and hence advantages, of more than one of the classic processes |
front 67 make-to-stock | back 67 products that require no customization; generic products that are produced in large enough volumes to justify keeping a finished goods inventory |
front 68 assemble- or finish- to-order | back 68 products that are customized only at the very end of the manufacturing process |
front 69 make-to-order | back 69 products that use standard components, but the final configuration of those components is customer-specific |
front 70 engineer-to-order | back 70 products that are designed and produced from the start to meet unusual customer needs or requirements; the highest level of customization |
front 71 business process | back 71 a set of logically related tasks or activities performed to achieve a defined business outcome |
front 72 primary process | back 72 a process that addresses the main value-added activities of an organization |
front 73 support process | back 73 a process that performs necessary, albeit non-value-added, activities |
front 74 development process | back 74 a process that seeks to improve the performance of primary and support processes |
front 75 mapping | back 75 the process of developing graphic representations of the organizational relationships and/or activities that make up a business process |
front 76 process map | back 76 a detailed map that identifies the specific activities that make up the informational, physical, and/or monetary flows of a process |
front 77 efficiency | back 77 a measure of process performance;
|
front 78 cycle time | back 78 the total elapsed time need to complete a business process |
front 79 capacity | back 79 the capability of a worker, machine, work center, plant, or organization to produce output per time period |
front 80 lead capacity strategy | back 80 a capacity strategy in which capacity is added in anticipation of demand |
front 81 lag capacity strategy | back 81 a capacity strategy in which capacity is added only after demand has materialized |
front 82 match capacity strategy | back 82 a capacity strategy that strikes a balance between the lead and lag capacity strategies by avoiding periods of high under- or over utilization |
front 83 virtual supply chain | back 83 a collection of firms that typically exists for only a short period |
front 84 indifference point | back 84 the output level at which two capacity alternatives generate equal costs |
front 85 Theory of Constraints | back 85 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 |
front 86 constraint | back 86 the process step that limits throughput for an entire process chain |
front 87 cycle stock | back 87 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 |
front 88 safety stock | back 88 extra inventory that companies hold to protect themselves against uncertainties in either demand or replenishment time |
front 89 anticipation inventory | back 89 inventory that is held in anticipation of customer demand |
front 90 hedge inventory | back 90 a form of inventory buildup to buffer against some event that may not happen |
front 91 transportation inventory | back 91 inventory that is moving from one link in the SC to another |
front 92 smoothing inventories | back 92 inventories used to smooth out differences between upstream production levels and downstream demand |
front 93 inventory drivers | back 93 business conditions that force companies to hold inventory |
front 94 supply uncertainty | back 94 the risk of interruptions in the flow of components from upstream suppliers |
front 95 demand uncertainty | back 95 the risk of significant and unpredictable fluctuations in downstream demand |
front 96 independent demand inventory | back 96 inventory items with demand levels that are beyond a company's complete control |
front 97 dependent demand inventory | back 97 inventory items whose demand levels are ties directly to the company's planned production of another item |
front 98 economic order quantity | back 98 the order quantity that minimizes annual holding and ordering costs for an item |
front 99 planning and control | back 99 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 |
front 100 master scheduling | back 100 a detailed planning process that tracks production output and matches this output to actual customer orders |
front 101 forecasted demand | back 101 the company's best estimate of the demand in any period |
front 102 booked ordered | back 102 confirmed demand for products |
front 103 master production schedule | back 103 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 |
front 104 available to promise | back 104 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 |
front 105 rough-cut capacity planning | back 105 a capacity planning technique that uses the master production schedule to monitor key resource requirements |
front 106 material requirements planning | back 106 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 |
front 107 dependent demand inventory | back 107 inventory items whose demand levels are tied directly to the production of another item |
front 108 bill of material | back 108 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 |
front 109 product structure tree | back 109 a graphical rendering that shows how the components in the BOM are put together to make the Level 0 item |
front 110 planning lead time | back 110 the time from when a component is ordered until it arrives and is ready to use |
front 111 exploding the BOM | back 111 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 |