CSCA® > Functional Strategies > Flashcards

Functional Strategies Flashcards

Explore functional-level tactics like operational excellence and innovation strategy. (32 cards)

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1
Q

What are the four competencies that determine a company’s ability to compete successfully?

A
  • Efficiency
  • Quality
  • Innovation
  • Responsiveness
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2
Q

What is the main goal of functional-level strategies?

A

Improving a company’s internal operations to enhance efficiency, quality, innovation, and customer responsiveness.

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3
Q

What does operational excellence aim to achieve?

A

It aims to achieve and sustain competitive advantage through superior efficiency, quality, innovation, and responsiveness.

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4
Q

What does superior efficiency involve?

A

Producing goods and services at lower costs.

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5
Q

What are some strategies to improve efficiency?

A
  • Leveraging economies of scale
  • Using flexible manufacturing technologies
  • Adopting just-in-time inventory systems
  • Training employees effectively
  • Employing web-based information systems
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6
Q

What are the two dimensions of quality?

A
  • Reliability
  • Excellence
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7
Q

What is Six Sigma?

A

A quality approach aimed at nearly eliminating defects, targeting a defect rate of no more than 3.4 per million opportunities.

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8
Q

What is the significance of innovation in competitive advantage?

A

Innovation allows companies to create differentiated products, reduce production costs, or both.

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9
Q

What is customer responsiveness?

A

Delivering what customers want, when they want it, and at a price they are willing to pay, while remaining profitable.

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10
Q

What is the importance of supply chain management?

A

To maximize customer value and achieve a sustained competitive advantage by coordinating supply chain activities.

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11
Q

What are non-value added activities?

A

Activities that do not increase the product’s utility or appeal to the customer.

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12
Q

How can a company improve operational excellence?

A

By continuously identifying and reducing or eliminating non-value-added activities and costs.

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13
Q

Why is employee compensation important?

A

It is essential to attracting top talent and retaining high-performing employees over the long term.

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14
Q

What is the cost of quality?

A

The expenses involved in producing high-quality products and the greater costs from failing to do so.

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15
Q

What are the costs of conformance?

A
  • Prevention costs
  • Appraisal costs
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16
Q

What are the costs of nonconformance?

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A
  • Internal failure costs
  • External failure costs
17
Q

What is an opportunity cost?

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A

The value of the next best alternative use of a resource that is foregone.

18
Q

What is Total Quality Management (TQM)?

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A

A comprehensive management approach centered on customer satisfaction and continuous improvement, emphasizing doing things right the first time to prevent defects and reduce costly rework.

TQM requires a cultural shift that includes eliminating ineffective processes, empowering employees, and fostering teamwork focused on quality.

19
Q

List the core principles of TQM.

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A
  • Support and active involvement of top management
  • Clear and measurable objectives
  • Timely recognition of quality-related achievements
  • Ongoing training in TQM practices
  • Commitment to continuous improvement (kaizen)
  • Focus on meeting or exceeding customer expectations
  • Full involvement of all employees at every level
20
Q

What is the ISO 9000 standard?

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A

A framework for quality management and assurance designed to help companies document the key processes necessary to sustain an effective quality system.

ISO 9000 standards are industry-neutral and can be applied to organizations of any size or type.

21
Q

What does Six Sigma aim to achieve?

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A

To virtually eliminate defects to improve customer satisfaction and profitability by reducing variability in processes.

To meet the Six Sigma standard, a process must produce no more than 3.4 defects per million opportunities.

22
Q

What is a kaizen blitz?

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A

It dedicates substantial resources to a short-term, high-impact project focused on analysis, redesign, and process reengineering in a specific area.

The results of a kaizen blitz can be immediate and transformative.

23
Q

What is the Malcolm Baldrige National Quality Award?

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A

A prestigious recognition established by the U.S. Congress to honor companies that demonstrate the highest standards of excellence in quality and performance.

24
Q

How does technology serve as a competitive advantage?

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A

It increases efficiency and connectivity, automating daily operations and enhancing productivity across business functions.

Staying current with technology is essential to avoid falling behind competitors.

25
What is **Enterprise Resource Planning (ERP)**?
A suite of integrated software applications used to collect, store, manage, and interpret data across an organization.
26
What are the **major components** of an ERP system?
* Production planning * Integrated logistics * Accounting and finance * Human resources * Sales * Distribution * Order management
27
What role does **innovation** play in strategy?
It is a key driver of operational excellence, supporting process improvement, product differentiation, and responsiveness to market demands.
28
How does **operational fit** contribute to innovation?
It ensures that a company's activities support and reinforce one another, with cross-functional integration among departments like R&D, production, marketing, administration, and finance being essential for commercialization.
29
Why is integration between R&D and marketing **important**?
It ensures product development aligns with customer needs, as customers often provide information about unmet needs and inspire new product ideas.
30
How does integration between R&D and administration support **innovation**?
It resolves issues related to compensation, training, and employee readiness, ensuring that sales and support staff are equipped and motivated to introduce and sustain new products.
31
What is the **significance** of integrating R&D with finance?
It ensures that funding is available for development and launch, and helps maintain adequate cash flow during the ramp-up period of a new product.
32
What **tools and concepts** support continuous improvement and internal alignment?
* Total quality management * Six Sigma * Kaizen * ERP systems * Strategic use of technology
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