Comp Priorities: critical dimensions that a process or supply chain must possess to satisfy its internal or external customers, both now and in the future. Monitor and evaluate
Comp Capabilities: The cost, quality, time, and flexibility dimensions that a process or supply chain actually possesses and is able to deliver. results.
Order Winner: The criterion customers use to differentiate the services or products of one firm from those of another. Ex: Happy Meals. “We are this…”
Order Qualifier: The minimum level required from a set of criteria for a firm to do business in a particular market segment. Ex: Fast Service, Low Cost, Location.
Steps in Decision Making: Problem Recognition, Prob Formulation (develop objectives, criteria and gen. alts), Analyze alts, Choose best solution b. on criteria, Impl. Dec.,
Breakeven Analysis: Breakeven Point is the volume at which Total Revenues=Total Cost. A tipping point where your org goes from losing money to earning profit Intro or no
Pref Matrix: Table that allows a manager to rate alts according to several performance criteria. The alt with highest score is the preferred alt.
Pref Matrix Advantages: Allows managers to incorp multiple criteria into their decision-making. Allows manager to incorporate relative importance of different criteria.
Pref Matrix Disadv: Subjective approach req man judgment that may not reflect the diff btwn alts. Man states weights before examining alts, may not know what’s important.
Pref Matrix Criticism: Allows one very low score to be overridden by high scores on other factors. May cause managers to ignore important signals.
Decision-Making Environments: Decision making under certainty. Decision making under uncertainty. Decision making under risk.
Chapter 3
Four Major Decisions in Designing Process: 1. Process Structure: Determines the process type relative to the kinds of