Business Midterm 101 TESU Chapter 7-9
iso 14000
A collection of the best practices for managing an organization's impact on the environment.
Materials Requirement Planning (MRP)
A computer-based operations management system that uses sales forecasts to make sure that needed parts and materials are available at the right time and place.
Planning
A management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives.
Staffing
A management function that includes hiring, motivating, and retaining the best people available to accomplish the company's objectives
Program Evaluation and Review Technique (PERT)
A method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project.
Enterprise Resource Planning (ERP)
A newer version of MRP, combines computerized functions into a single integrated software program using a single database.
just-in-time inventory control
A production process in which a minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered just in time to go on the assembly line.
intermittent process
A production process in which the production run is short and the machines are changed frequently to make different products.
Operations Management
A specialized area in management that converts or transforms resources (including human resources) into goods and services.
hierarchy
A system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person.
organization chart
A visual device that shows relationships among people and divides the organization's work; it shows who reports to whom.
Matrix Organization
An organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line-and-staff structure.
decentralized authority
An organization structure in which decision-making authority is delegated to lower-level managers more familiar with local conditions than headquarters management could be.
line organization
An organization that has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor.
Bureaucracy
An organization with many layers of managers who set rules and regulations and oversee all decisions.
Decision making
Choosing among two or more alternatives.
Brainstorming
Coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas.
Benchmarking
Comparing an organization's practices, processes, and products against the world's best.
enabling
Giving workers the education and tools they need to make more decisions.
free-reign
Leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives.
PMI
Listing all the pluses for a solution in one column, all the minuses in another, and the implications in a third column.
Supervisory Management
Managers who are directly responsible for supervising workers and evaluating their daily performance.
goals
The broad, long-term accomplishments an organization wishes to attain.
Production
The creation of finished goods and services using the factors of production, land, labor, capital, entrepreneurship, and knowledge.
middle management
The level of managements that includes general managers. Division managers, and branch and plant managers who are responsible for tactical planning and controlling.
Transparency
The presentation of a company's facts and figures in a way that is clear and apparent to all stakeholders.
Management
The process of accomplishing the goals of an organization through the effective use of people and other resources.
problem solving
The process of solving the everyday problems that occur. Problem solving is less formal than decision making and usually calls for quicker action.
economies of scale
The situation in which companies can reduce their production costs if they can purchase raw materials in bulk; the average cost of goods goes down as production levels increase.
formal organization
The structure that details lines of responsibility, authority, and position; that is, the structure shown on organization charts.
computer-integrated manufacturing (CIM)
The uniting of computer-aided design with computer-aided manufacturing.
organizing
a management function that includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organization's goals and objectives
Controlling
a management function that involves establishing clear standards to determine whether or not an organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not
SWOT analysis
a planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats
continuous process
a production process in which long production runs turn out finished goods over time
Six Sigma Quality
a quality measure that allows only 3.4 defects per million opportunities
virtual corporation
a temporary networked organization made up of replaceable firms that join and leave as needed
vision
an encompassing explanation of why the organization exists and where it's trying to head
centralized authority
an organization structure in which decision-making authority is maintained at the top level of management
Flat Organizational Structure
an organization structure that has few layers of management and a broad span of control
inverted organization
an organization that has contact people at the top and the chief executive officer at the bottom of the organization chart
tall organization structure
an organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management
Mission Statement
an outline of the fundamental purposes of an organization
Grantt Chart
bar graph showing production managers what projects are being worked on and what stage they are in at any given time
quality
consistently producing what the customer wants while reducing errors before and after delivery to the customer
leading
creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve the organization's goals and objectives
flexible manufacturing
designing machines to do multiple tasks so that they can produce a variety of products
staff personnel
employees who advise and assist line personnel in meeting their goals
line personnel
employees who are part of the chain of command that is responsible for achieving organizational goals
knowledge management
finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm
cross-functional self-managed teams
groups of employees from different departments who work together on a long-term basis
critical path
in a PERT network, the sequence of tasks that takes the longest time to complete
participative leadership
leadership style that consists of managers and employees working together to make decisions
autocratic
leadership style that involves making managerial decisions without consulting others.
restructuring
redesigning an organization so that it can more effectively and efficiently serve its customers
human relations skills
skills that involve communication and motivation; they enable managers to work through and with people
Technical skills
skills that involve the ability to perform tasks in a specific discipline or department
conceptual skills
skills that involve the ability to picture the organization as a whole and the relationship among its various parts
mass customization
tailoring products to meet the needs of individual customers
process manufacturing
that part of the production process that physically or chemically changes materials
assembly process
that part of the production process that puts together components
ISO 9000
the common name given to quality management and assurance standards
Departmentalization
the dividing of organizational functions into separate units
purchasing
the function in a firm that searches for high-quality material resources, finds the best suppliers, and negotiates the best price for goods and services
top management
the highest level of management, consisting of the president and other key company executives who develop strategic plans.
chain of command
the line of authority that moves from the top of a hierarchy to the lowest level
span of control
the optimal number of subordinates a manager supervises or should supervise
facility layout
the physical arrangement of resources (including people) in the production process
real time
the present moment or the actual time in which something takes place
Strategic Planning
the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals
tactical planning
the process of developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done
contingency planning
the process of preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives
facility location
the process of selecting a geographic location for a company's operations
operational planning
the process of setting work standards and schedules necessary to implement the company's tactical objectives
Statistical Process Control
the process of testing statistical samples of product components at each stage of the production process and plotting those results on a graph. Any variances from quality standards are recognized and can be corrected if beyond the set standards.
Statistical Quality Control
the process some managers use to continually monitor all phases of the production process to assure that quality is being built into the product from the beginning
lean manufacturing
the production of goods using less of everything compared to mass production
informal organization
the system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organization
production management
the term used to describe all the activities managers do to help their firms create goods
computer-aided design (CAD)
the use of computers in the design of products
computer-aided manufacturing (CAM)
the use of computers in the manufacturing of products
Form Utility
the value producers add to materials in the creation of finished goods and services
core competencies
those functions that the organization can do as well as or better than any other organization in the world
Networking
using communications technology and other means to link organizations and allow them to work together on common objectives
organizational culture
widely shared values within an organization that provide unity and cooperation to achieve common goals
telecommuting
working from home via computer
digital natives
young people who have grown up using the internet and social networking
objectives
Specific, short-term statements detailing how to achieve the organization's goals.