Ch1
core capability operational planning supply chain management
A unique set of skills that confers A type of planning that establishes The design and execution of
competitive advantages to a firm, short-term priorities and schedules to relationships and flows that connect the
because rival firms cannot easily guide operational resource allocations. parties and processes across a supply
duplicate them. operations management chain.
customer management supply management
The management of processes used to
The management of the customer design, supply, produce, and deliver The identification, acquisition,
interface, including all aspects of order valuable goods and services to positioning, and management of
processing and fulfillment. customers. resources and capabilities that a firm
customers process needs to attain its strategic objectives.
tactical planning
Parties that use or consume the A system of activities that transforms
products of operations management inputs into valuable outputs. A type of planning that addresses
processes. stakeholders intermediate-term decisions to target
dematerialization aggregate product demands and to
Groups of people who have a financial or establish how operational capacities will be
The process of transforming a tangible other interest in the well-being of an used to meet them.
good into an intangible product or operation. tier
service, through digitization or direct strategic planning
service replacement. An upstream stage of supply.
echelon A type of planning that addresses long- total product experience
term decisions that define the
A downstream stage of supply or All the goods and services that are
operations objectives and capabilities
consumption. combined to define a customer’s complete
for the firm and its partners.
consumption experience.
lean operation suppliers
analytics
An operation that produces maximum Parties that provide inputs to
The application of sophisticated
levels of efficiency and effectiveness operational processes.
operations research techniques to big
using a minimal amount of resources. supply chain
data with the goal of identifying,
logistics management
The global network of organizations and interpreting, and communicating
Management of the movement and activities involved in designing, meaningful patterns in the data.
storage of materials at lowest cost while transforming, consuming, and disposing
still meeting customers’ requirements. of goods and services.
Ch2 corporate strategy relationships), and competitive
environments.
big data Determines the overall mission of the
functional strategy
firm and the types of businesses that
Large data sets generated by the firm wants to be in. Determines how the function will
technologies such as social media cost support the overall business unit
and the Internet of Things (IoT). Big strategy.
data are often paired with predictive The expenses incurred in acquiring
innovation
analytics or other similar analytical and using a product.
procedures. customers Both radical and incremental
business model changes in processes and products.
Parties that use or consume the
Internet of Things (IoT)
The combination of the choices products of operations management
determining the customers an SBU processes. The network of physical devices
will target, the value propositions it cyber security (such as phones, vehicles, machines,
will offer, and the supply and appliances) that are embedded
The protection of firms and their
chain/operations management with sensors, software, and
systems from the following three
capabilities it will employ. connectivity that enable data
threats: (1) theft of data and
business unit strategy exchange and analysis.
intellectual property; (2) alteration
key customer
Determines how a strategic business of data; and (3) impairment or denial
unit will compete. of process control (causing damage A customer that the firm has targeted
capabilities or breakdown of operations). as being important to its future
fit success.
Unique and superior operational lead time
abilities that stem from the routines, The extent to which there is
skills, and processes that the firm alignment between the firm’s The amount of time that passes
develops and uses. operational capabilities, its value between the beginning and end of a
core capabilities proposition, and the desires of its set of activities.
critical customers. operations strategy
The skills, processes, and systems flexibility
that are unique to the firm and that A set of competitive priorities coupled
enable it to deliver products that are An operation’s ability to respond with supply chain structural and
both valued by the customer and efficiently to changes in products, infrastructural design choices intended
processes (including supply chain to create capabilities that support a set
difficult for competitors to imitate.
of value propositions targeted to natural events, social factors, areas where the firm is
address the needs of critical customers. economic issues, or significantly at risk.
order losers
technological issues. timeliness
Product traits that, if not satisfied, strategic business units
cause the loss of either the current The degree to which a product
(SBUs)
order or future orders. is delivered or available when
order qualifiers The semi-independent the customer wants it.
Product traits that must be met at a organizations used to manage time to market
certain level for the product to be different product and market
The total time that a firm takes
considered by the customer. segments.
order-to-delivery lead time to conceive, design, test,
strategic profit model (SPM)
produce, and deliver a new or
The time that passes from the instant A model that shows how revised product for the
the customer places an order for a
product until the instant that the operational changes affect the marketplace.
customer receives the product. overall performance of a triple bottom line
order winners business unit. An approach to corporate performance
sustainability measurement that focuses on a
Product traits that cause a company’s total impact measured in
customer to select one product Maintaining operations that are terms of profit, people (social
over its competitors. both profitable and responsibility), and the planet
quality nondamaging to society or the (environmental responsibility). Also
environment. referred to the asTBL, the 3BL, or
A product’s fitness for SWOT
the 3Ps.
consumption in terms of value proposition
meeting customers’ needs and A strategic planning technique A collection of product and service
desires. to help firms identify features that is both attractive to
opportunities where they can customers and different than
risk management
develop a sustainable competitors’ offerings.
Developing operations that competitive advantage and
anticipate and deal with
problems resulting from
