mgt302 ch1 and ch2
Terms
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- craft production
- production of goods by highly skilled and specialized artisians
- mass production
- high volumne production of standardized products
- profitability
- a measure of the productivity of money invested in a business, typically a ratio of net incomem to some input such as net sales or total assets
- value
- the amount a customer is willing to pay for a product or service, sometimes thought of as benefits divided by cost
- strategy
- the means by which a company positions itself for future profitability
- capabilities
- the abilities a business has that result from its processes. capabilities create value
- processes
- organized tasks accomplished by grouping resources together
- cost
- the expenses associated with ownership
- quality
- meeting customer expectations
- timeliness
- the speed at which a business completes tasks and the degree to which it completes tasks on schedule and as promised
- integrative management framework
- a management approach or "philosophy" that guides day-to-day decisions in a way that is consistent with a firm's profitability goals. Examples include lean systems, constraints, and supply chain management
- lean systems
- a productive system that functions with little waste or excess, usually with low inventory levels
- constraint management
- a framework for managing the constraints of a system in a way that maximizes the system's accomplishment of its goals
- inventory
- materials used in the production of products and services
- logistics
- the flow and storage of goods, services, and related information from prodcution to consumption
- capacity
- the level of productive output of an organization in a specified period of time
- facilities
- the buildings and structures that house various aspects of a business
- workforce
- the employees required to produce a product or service
- disruptive technology
- a new technology that displaces an existing technology
- maquiladoras
- foreign-owned manufacturing plants in mexico
- net present value
- the differnece between the market value of a product or service and the cost of creating it
- productivity
- a measure of how well inputs are used by a business, typically the ratio of an output to the input of interest
- profit margin
- profit generated per dollar of sales
- return on assets (ROA)
- profit per dollar of assets
- return on equity (ROE)
- profit per dollar of equity
- economic value added (EVA)
- a productivity measure that indiccates whether or not a business is creating wealth from its capital. it is equal to the after-tax operating profit minus the annual cost of capital
- inventory turnover
- a measure of inventory producivity computed by dividing sales by the average value of inventory
- machine utilization
- a productivity measure for machines that is equal to actual running time divided by time available
- efficiency
- the ration of acutal output to standart output
- service level
- the percent of orders satisfied from existing inventory
- stockout
- an instance when demand connat be satisfied by existing inventory
- safety stock
- additional inventory used to help meet demand uncertainity
- balanced scorecard
- a performance measurement system that combines financial and nonfinancial measures of business performance