Ch. 9 Business Dynamics

3 things service providers should do to remain competitive

Focus on providing customers with quality care and attention, maintain close relationships with suppliers and companies to satisfy customer needs, and continuously improve

Intermittent Process

It usually makes more sense when responding to specific customer orders to use - Short production and adjust machines frequently to make different products

just-in-time (JIT) inventory control

JIT systems keep a minimum of inventory on the premises—and deliver parts, supplies, and other needs just in time to go on the assembly line

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 is referred to as ______.

MRP

Overall company quality is outlined by the standards set by the ______ National Quality Award

Malcolm Baldrige

program evaluation and review technique (PERT)

PERT users analyze the tasks to complete a given project, estimate the time needed to complete each task, and compute the minimum time needed to complete the whole project

computer-integrated manufacturing (CIM)

When companies use CIM, computers control the entire production process - Data controls sensors that measure humidity, global positioning trackers (that fix location), or calipers that measure a material's thickness

ISO 14001

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 needed parts and materials are available at the right time and place

Enterprise resource planning (ERP)

a newer version of MRP, combines the computerized functions of all the divisions and subsidiaries of the firm—such as finance, human resources, and order fulfillment—into a single integrated software program that uses a single database

Operations Management

a specialized area in management that converts or transforms resources, including human resources like technical skills and innovation, into goods and services - To provide good experiences for those who use the service - To keep operations running efficiently - Help facility location, facility layout, materials requirement planning, purchasing, inventory control, and quality control

Production Management

described the activities that helped firms create goods

Manufacturing

lost more jobs due to technological change

Quality

means consistently producing what the customer wants while reducing errors before and after delivery

Flexible Manufacturing

means designing machines to do multiple tasks so they can produce a variety of products

ISO

nongovernmental organization established to promote the development of world standards to facilitate the international exchange of goods and services

Continuous Process

one in which long production runs turn out finished goods over time

Process Manufacturing

physically or chemically changes materials

Assembly Process

puts together components (eggs, toast, and coffee) to make a product

Production

the creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge

Purchasing

the function that searches for high-quality material resources, finds the best suppliers, and negotiates the best price for quality goods and services

Facility Layout

the physical arrangement of resources, including people, to most efficiently produce goods and provide services for customers

Facility Location

the process of selecting a geographic location for a company's operations - Move locations based on labor costs, availability of resources (labor), access to transportation, proximity to suppliers and customers, crime rates, quality of life for employees, cost of living, and need to train or retrain local workforce

Lean Manufacturing

the production of goods using less of everything than in mass production: less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product

computer-aided manufacturing/design (CAM/CAD)

the use of both computer-aided design and computer-aided manufacturing, makes it possible to custom-design products to meet the needs of small markets with very little increase in cost

Form Utility

the value producers add to materials in the creation of finished goods and services, such as by transforming silicon into computer chips or putting services together to create a vacation package. Form utility can exist at the retail level as well

For which reasons might a company choose to spend millions of dollars to move its facility from one location to another?

to lower costs of obtaining resources to reduce time to market to be closer to a pool of qualified employees

Telecommuting

working from home via computer, is a major trend in business