Key Terms Management

CH. 1

Operations and supply chain management (OSCM): Design, operation and improvement of the systems that create and deliver the firm’s primary products and services. Pg. 40

Servitization: Building service activities to support a firm’s product offerings. Pg. 46

Efficiency: Doing something at the lowest possible cost. Pg. 47

Effectiveness: Doing the right things to create the most value for the company. Pg. 47

Value: Ratio of quality to price paid. Competitive happiness is being able to increase quality and reduce price while maintaining or improving profit margins. Pg. 47

Mass customization: Producing products to order in lot sizes of one. Pg. 52

Sustainability: The ability to maintain balance in a system. Pg. 53

Triple bottom line: Relates to the economic, employee, and environmental impact of the firm’s strategy. Pg. 53

CH. 2

Triple bottom line: A business strategy that includes social, economic and environmental criteria. Pg. 58

Operations and supply chain strategy: Setting broad policies and plans for using the resources of a firm to best support the firm’s long term competitive strategy. Pg. 59

Straddling: Occurs when a firm seeks to match what a competitor is doing by adding new features, services, or technologies to existing activities. Often creates problems if certain trade-offs need to be made. Pg. 63

Order winner: A dimension that differentiates the products or services of one firm from those of another. Pg. 63

Order qualifier: A dimension used to screen a product or service as a candidate for purchase. Pg. 63

Activity-system maps: A diagram that shows how a company’s strategy is delivered through a set of supporting activities. Pg. 64

Core capabilities: Skills that differentiate a manufacturing or service firm from its competitors. Pg. 65

Productivity: A measure of how well resources are used. Pg. 66

CH. 3

Contract manufacturer: An organization capable of manufacturing and or purchasing all the components needed to produce a finished product or device. Pg. 76

Core competency: The one thing that a firm can do better than its competitors. The goal is to have a core competency that yields a long-term competitive advantage to the company. Pg. 76

Concurrent engineering: Emphasizes cross-functional integration and concurrent development of a product and its associated processes. Pg. 82

Quality function deployment (QFD): Process that helps a company determine the product characteristics important to the consumer and to evaluate its own product in relation to others. Pg. 86

House of quality: Matrix that helps a product design team translate customer requirements into operating and engineering goals. Pg. 87

Value analysis/value engineering (VA/VE): Analysis with the purpose of simplifying product and processes by achieving equivalent or better performance at a lower cost. Pg. 87

Ecodesign: The incorporation of environmental considerations into

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