BA 314 Midterm Exam
Operations Management - The systematic design, direction, and control of processes that
transform inputs into services and products for internal, as well as external, customers
Process - Any activity or group of activities that takes one or more inputs, transforms them, and
provides one or more outputs for its customers
Operation - A group of resources performing all or part of one or more processes
Supply Chain Management - The synchronization of a firm's processes with those of its
suppliers and customers to match the flow of materials, services, and information with customer
demand
Supply Chain - An interrelated series of processes within and across firms the produces a
service or product to the satisfaction of customers
Operations Strategy - The means by which operations implements the firm's corporate strategy
and helps to build a customer-driven firm
Corporate Strategy - Provides an overall direction that serves as the framework for carrying out
all the organization's functions (Environmental Scanning, Core Competencies, Core Processes,
Global Strategies)
Order Winners - A criterion customers use to differentiate the services or products of one firm
from those of another.
Order Qualifiers - Minimum level required from a set of criteria for a firm to do business in a
particular market segment.
Low-cost operations - Delivering a service or a product at the lowest possible cost (Costco)
Top quality - Delivering an outstanding service or product (Rolex)
Consistent quality - Producing services or products that meet design specifications on a
consistent basis (McDonalds)
Delivery speed - Quickly filling a customer's order (Netflix)
On-time delivery - Meeting delivery-time promises (UPS)
Development speed - Quickly introducing a new service or a product (Zara)
, Customization - Satisfying the unique needs of each customer by changing service or product
designs (Ritz Carlton)
Variety - Handling a wide assortment of services or products efficiently (Amazon)
Volume flexibility - Accelerating or decelerating the rate of production of services or products
quickly to handle large fluctuations in demand (USPS)
Process Strategy - The pattern of decisions made in managing processes, so that the
processes will achieve their competitive priorities
Front office - A process with high customer contact where the service provider interacts directly
with the internal or external customer
Hybrid office - a process with moderate levels of customer contact and standard services with
some options available
Back office - a process with low customer contact and little service customization
Mass customization - A strategy whereby a firm's highly divergent processes generate a wide
variety of customized services or products at reasonably low costs.
Continuous flow process - The extreme end of high-volume standardized production and rigid
line flows, with production not starting and stopping for long time intervals.
Quality - A term used by customers to describe their general satisfaction with a service or
product.
Costs of Quality - -Prevention Costs
-Appraisal Costs
-Internal Failure Costs
-External Failure Costs
TQM (Total Quality Management) - A philosophy that stresses principles for achieving high
levels of process performance and quality.
Six Sigma - A comprehensive and flexible system for achieving, sustaining, and maximizing
business success by minimizing defects and variability in processes.
Statistical Process Control (SPC) - The application of statistical techniques to determine
whether a process is delivering what the customer wants.
Performance Measurements-Variables - Characteristics that can be measured
Operations Management - The systematic design, direction, and control of processes that
transform inputs into services and products for internal, as well as external, customers
Process - Any activity or group of activities that takes one or more inputs, transforms them, and
provides one or more outputs for its customers
Operation - A group of resources performing all or part of one or more processes
Supply Chain Management - The synchronization of a firm's processes with those of its
suppliers and customers to match the flow of materials, services, and information with customer
demand
Supply Chain - An interrelated series of processes within and across firms the produces a
service or product to the satisfaction of customers
Operations Strategy - The means by which operations implements the firm's corporate strategy
and helps to build a customer-driven firm
Corporate Strategy - Provides an overall direction that serves as the framework for carrying out
all the organization's functions (Environmental Scanning, Core Competencies, Core Processes,
Global Strategies)
Order Winners - A criterion customers use to differentiate the services or products of one firm
from those of another.
Order Qualifiers - Minimum level required from a set of criteria for a firm to do business in a
particular market segment.
Low-cost operations - Delivering a service or a product at the lowest possible cost (Costco)
Top quality - Delivering an outstanding service or product (Rolex)
Consistent quality - Producing services or products that meet design specifications on a
consistent basis (McDonalds)
Delivery speed - Quickly filling a customer's order (Netflix)
On-time delivery - Meeting delivery-time promises (UPS)
Development speed - Quickly introducing a new service or a product (Zara)
, Customization - Satisfying the unique needs of each customer by changing service or product
designs (Ritz Carlton)
Variety - Handling a wide assortment of services or products efficiently (Amazon)
Volume flexibility - Accelerating or decelerating the rate of production of services or products
quickly to handle large fluctuations in demand (USPS)
Process Strategy - The pattern of decisions made in managing processes, so that the
processes will achieve their competitive priorities
Front office - A process with high customer contact where the service provider interacts directly
with the internal or external customer
Hybrid office - a process with moderate levels of customer contact and standard services with
some options available
Back office - a process with low customer contact and little service customization
Mass customization - A strategy whereby a firm's highly divergent processes generate a wide
variety of customized services or products at reasonably low costs.
Continuous flow process - The extreme end of high-volume standardized production and rigid
line flows, with production not starting and stopping for long time intervals.
Quality - A term used by customers to describe their general satisfaction with a service or
product.
Costs of Quality - -Prevention Costs
-Appraisal Costs
-Internal Failure Costs
-External Failure Costs
TQM (Total Quality Management) - A philosophy that stresses principles for achieving high
levels of process performance and quality.
Six Sigma - A comprehensive and flexible system for achieving, sustaining, and maximizing
business success by minimizing defects and variability in processes.
Statistical Process Control (SPC) - The application of statistical techniques to determine
whether a process is delivering what the customer wants.
Performance Measurements-Variables - Characteristics that can be measured
