Strategic Management and Performance Metrics Flashcards

In CPIM, what is the primary goal of strategic management of resources?

Answer: To align operations capabilities with long-term business goals and competitive priorities

Strategic management of resources focuses on developing operations capabilities that support the company's long-term competitive strategy.

Which competitive priority is BEST aligned with a make-to-stock production strategy?

Answer: Low cost with high volume standardized products

Make-to-stock is suited for high-volume, standardized products where cost efficiency and immediate availability are the primary competitive advantages.

What is 'order winners' vs. 'order qualifiers' in competitive strategy?

Answer: Order qualifiers are the criteria that win business; order winners are minimum standards to compete

Order qualifiers are minimum performance thresholds a company must meet to be considered, while order winners are the criteria that actually differentiate and win the business.

Which of the following is an example of a 'core competency' in operations strategy?

Answer: A unique combination of skills, knowledge, and processes that competitors cannot easily replicate

A core competency is a distinctive organizational capability — rooted in skills and processes — that provides competitive advantage and is difficult for rivals to imitate.

In CPIM, what does 'make vs. buy' analysis primarily evaluate?

Answer: Whether to manufacture a component internally or outsource it to a supplier

Make vs. buy analysis weighs the costs, risks, and strategic implications of producing a component in-house versus purchasing it from an external supplier.

Which strategy involves building inventory ahead of a known demand spike, such as a seasonal peak?

Answer: Level strategy

A level strategy maintains a constant production rate and builds inventory in advance to absorb demand fluctuations, such as seasonal peaks.