| assembler | The final step of the four stages of product value creation, which puts together the outputs of fabricators.
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| basic producer | A manufacturer that extracts raw materials from natural resources.
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| business strategy | Defines the range of activities for a business, setting priorities so that it accomplishes the overall corporate strategy.
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| capability chain | The capabilities added by all members of a supply chain.
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| competitive priorities | Key value attributes that are highly influenced by operations management: cost, quality, dependability of delivery, flexibility, and response time.
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| converter | The second stage of product value creation, which refines natural resource inputs.
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| core competencies | Those things a firm does very well and that distinguish it from competitors.
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| corporate strategy | In the broadest strategy, it defines the businesses that a corporation will engage in and how resources will be expended.
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| cost leader strategy | A strategy that seeks to price goods and services lower than competitors.
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| design capacity | The capacity a facility is designed to accommodate on an ongoing basis.
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| differentiation strategy | A strategy that seeks to create products and services that are different from those of competitors.
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| environmental scanning | Examining the environment for potential impact on strategic decisions.
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| fabricator | The third stage of product value creation, which takes inputs from converters and transforms them into components used by assemblers.
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| focus strategy | A strategy that targets a small segment of the market with products or services.
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| functional strategy | A strategy that establishes the link between functional decision making and business strategy.
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| mass customization | The ability to customize in high volumes.
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| mission statement | A short statement of what a business does, what its values are, who its market is, and why.
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| order qualifier | Product or service characteristics that are necessary, but not sufficient to result in winning the order.
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| order winner | A product or service characteristic that is most important to a particular customer and results in the customer ordering.
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| protective capacity | A layer of capacity above that which is absolutely required to meet known demand, providing the firm with the ability to handle occasional problems and enabling them to handle special requests.
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| supply chain | The path of value creation, from basic producer through consumer, including all transportation and logistics services that connect them.
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| supply chain management | The management of supplier–customer relationships.
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