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1.
Is defined as the design, operation, and improvement of the systems that create
and deliver the firm’s primary products and services
R= Operations and Supply Chain Management (OSCM)
2. Refers to manufacturing and service processes used to transform the resources
employed by a firm into products desired by customers.
R= Operations
3. Refers to processes that move information and material to and from the
manufacturing and service process of the firm
R= Supply chain
4. Consists of the processes needed to operate an existing supply chain strategically.
Here a firm must determine how anticipated demand will be met with available
resources.
R= Planning
5. Is also referred to as logistics processes. Carriers are picked to move products to
warehouses and customers, coordinate and schedule the movement of goods and
information through the supply network, develop and operate a network of
warehouses, and run the information systems that manage the receipt of orders from
customers and the invoicing systems that collect payments from customers.
R= Delivering
6. Involves the selection of suppliers that will deliver the goods and services needed
to create the firm’s product. A set of pricing, delivery, and payment processes are
needed, along with metrics for monitoring and improving the relationships between
partners of the firm. These processes include receiving shipment, verifying them,
transferring them to manufacturing facilities, and authorizing supplier payments.
R= Sourcing
7. Is where the major product is produced or the service provided. The step requires
scheduling processes for workers and the coordination of material and other critical
resources such as equipment to support producing or providing the service. Metrics
that measure speed, quality, and worker productivity are used to monitor these
processes.
R= Making
8. Is an intangible process that cannot be weighed or measured, whereas a good is a
tangible output of a process that has physical dimensions.
R= Service
9. Are generally produced in a facility separate from the customer. They can be made
according to a production schedule that is efficient for the company.
R= Goods
10. The customer
11. location, decoration, layout, architectural appropriateness, supporting
equipment.
R= Supporting Facilities
12. Refers to when a company builds service activities into its product offerings.
R= Product-service bundling
13. Emphasizes how a factory’s capabilities could be used strategically to gain
advantage over a competing company.
R= Manufacturing Strategy
14. An integrated set of activities designed to achieve high-volume production using
minimal inventories of parts that arrive exactly when they are needed.
R= JIT (Just In Time)
15. Aggressively seeks to eliminate causes of production defects
R= Total Quality Control (TQC)
16. The ability to meet current resource needs without compromising the ability of
future generations to meet their needs.
R= Sustainability
17. A business strategy that includes social, economic, and environmental criteria.
R= Triple Bottom Line
18. Means doing something at the lowest possible cost.
R= Efficiency
19. Means doing the right things to create the most value for the company.
R= Effectiveness
20. Can be abstractly defined as quality divided by price.
R= Value
21. is a process in which one company studies the processes of another company (or
industry) to identify best practices.
R= Benchmarking
22. Is “the ability to hold, receive, store, or accommodate.” In a general business
sense, it is most frequently viewed as the amount of output that a system is capable
of achieving over a specific period of time.
R= Capacity
23. Is to provide an approach for determining the overall capacity level of capital-
intensive resources—facilities, equipment, and overall labor force size—that best
supports the company’s long-term competitive strategy.
R= Strategic capacity planning
24. Is the level of capacity for which the process was designed and thus is the volume
of output at which average unit cost is minimized.
R= Best operating level
25. The basic notion of is that as a plant gets larger and volume
increases, the average cost per unit of output drops. This is partially due to lower
operating and capital cost, because a piece of equipment with twice the capacity of
another piece typically does not cost twice as much to purchase or operate.
R= Economies of scale

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