Strategic Management of Resources Flashcards
6 cards from real CPIM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Strategic Management of Resources flashcards as text
The 'order winner' concept in manufacturing strategy refers to:
Answer: The criteria that cause customers to choose one supplier over competitors
Order winners are the competitive criteria (price, quality, speed, flexibility) that actually win orders from customers, distinguishing one supplier from another in a specific market.
What is the primary purpose of a 'technology roadmap' in manufacturing strategy?
Answer: Aligning technology investments and development timelines with business and product strategy over time
A technology roadmap is a strategic planning tool that links business objectives with technology development plans across time, guiding investment decisions.
In CPIM strategic management, 'vertical integration' means a company:
Answer: Acquires control of adjacent stages in its supply chain (suppliers or customers)
Vertical integration is a strategy where a company takes ownership of supply chain stages it previously outsourced, either backward (toward suppliers) or forward (toward customers).
Total Cost of Ownership (TCO) when evaluating suppliers includes:
Answer: Purchase price, transportation, quality costs, inventory costs, and supplier development costs
TCO captures all costs associated with a supplier relationship beyond the purchase price, including logistics, quality failures, inventory holding, and the cost of managing the supplier.
What is 'mass customization' in manufacturing strategy?
Answer: Delivering individually customized products at near mass-production cost and volume
Mass customization combines the efficiency of mass production with the flexibility to deliver product configurations that meet individual customer needs at competitive cost.
Which approach to capacity strategy adds capacity in advance of projected demand to prevent lost sales?
Answer: Lead strategy
A lead capacity strategy proactively adds capacity before demand materializes, accepting higher short-term costs to avoid stockouts and capture market share.