Chapter 10
continuous improvement
A commitment to constantly seek better ways to achieve greater efficency and improve quality.
perpetual inventory
A continuously updated list of inventory levels, orders, sales, and recipts
fixed-position layout
A facility arrangement in which the product stays in one place and workers and machhinery move to it as needed
process layout
A facility arrangement in which work flows according to the production process. All workers performing similar tasks are grouped together, and products pass from one workstation to another
product layout
A facility arrangement in which workstations or departments are arranged in a line with products moving along the line
bussiness process management
A unified system that has the power to intergrate and optimize a company's sprawling fuctions by automating much of what is does.
Gantt charts
Bar graphs plotted on a time line that show the relationship between scheduled and actual production
just-in-time
Based on the belief that materials should arrive exactly when they are needed for production, rather than being stored on site.
lean manufacturing
Can be defined as streamlining production by eliminating steps in the production process that do not add benefits that customers are willing to pay for
CAD/CAM systems
Combine the advantages of CAD and CAM by integrating design, testing, and manufacturing control into one linked computer system.
computer-aided design
Computers are used to design and test new products and modify existing ones.
quality
Goods and services that meet customer expectations by providing reliable performance
ciritcal path
In a critical path method network, the longest path through the linked activites
operations management
Management of the production process
cellular manufacturing
Production technique that uses small, self-contained production units, each performing all or most of the tasks necessary to complete a manufacturing order
Total Quality Management
Refers to the use of quality principles in all aspects of a company's production and operations.
value-stream mapping
Routing technique that uses simple icons to visually represent the flow of materials and information from suppliers through the factory to customers
production
The creation of products and services by turning inputs, such as natural resources, raw materials, human resources, and capital, into outputs, which are products and services
inventory management
The determenation of how much of each type of inventory a firm will keep on hand and the ordering, recieving, storing, and tracking of it
supply chain
The entire sequence of securing inputs, producing goods, and delivering goods to customers.
mass production
The manufacture of many identical goods at once.
purchasing
The process of buying production inputs from various sources, also called procurement
e-procurement
The process of purchasing supplies and materials online using the Internet
production process
The way a good or service is created
flexible manufacturing system
These systems combine automated workstations with computer-controlled transportation devices.
computer-aided manufacturing
Uses computers to develop and control the production process
inventory
The supply of goods that a firm holds for use in production or for sale to customers
robotics
The technology involved in designing, constructing, and operating robots.
Malcom Baldrige National Quality Award
This award recognizes U.S. companies that offer goods and services of world-class quality. The award's most important criteria are a firm's effectiveness at meeting customer expectations.
manufacturing planning II
A complex computerized system that intergrates data from many departments to allow managers to more accurately forecast and assess the impact of production plans on profitability
enterprise resource planning
A computerized resource planning system that incorporates information about the firm's suppliers and customers with its internally generated data
materials requirement planning
A computerized system of controlling the flow of resources and inventory. A master schedule is used to ensure that the materials, labor, and equipment needed for production are at the right places in the right amounts at the right times
bill of material
A list of items and the number of each required to make a given product
job shop
A manufacturing firm that produces goods in response to the customer orders
mass customization
A manufacturing process in which goods are mass-produced up to a point and then custom tailored to the needs or desires of individual customers
process manufacturing
A production process in which basic input is broken down into one or more outputs
assembly process
A production process in which the basic inputs are either combined to create the output or transformed into the output
continious process
A production process that uses long production runs lasting days, weeks, or months without equipment shutdowns, generally used for high-volume, low variety products with standardized parts
intermittent process
A prodution process that uses short production runs to make batches of different products, generally used for low-volume, high-variety products
Six Sigma
A quality control proces that relies on defining what needs to be done to ensure quality, measuring and analyzing production results statistically, and finding ways to improve and control quality
critical path method
A scheduling tool that enables a manager to determine the critical path of activites for a project, the activites that will cause the entire project to fall behind schedule if they are not completed on time
program evaluation and review technique
A scheduling tool that is similar to the CPM method but assigns three estimates for each activity, allows managers to anticipate delays and potential problems and schedule accordingly
ISO 9000
A set of five technical standards of quality management created by the International Organization for Standardization to provide a uniform way of determining whether manufacturing plants and service organizations conform to the sound quality procedures
ISO 14000
A set of technical standards designed by the International Organization for Standardization to provide a uniform way of determing whether manufacturing plants and service organizations conform to the sound quality procdures
computer-intergrated manufacturing
Combines computerized manufacturing processes with other computerized systems that control design, inventory, production, and purchasing.
quality control
Involves creating those quality standards and measuring finished products and services against them.
outsourcing
The purchase of items from an outside source rather than making them internally
customization
The production of goods or services one at a time according to the specific needs or wants of invidivudal customers
production planning
The aspect of operations management in which the firm considers the competitive enviornment and its own strategic goals in an effort to find the best production methods
routing
The aspect of production control that involves setting out the work flow, the sequence of machines and operations through which the product or services progresses from start to finish
scheduling
The aspect of production control that involves specifying and controlling the time required for each step in the production process
make-or-buy decision
The determination by a firm of whether to make its own production materials or to buy them from outside sources
electronic data interchange
The electronic exchange of information between two trading partners
supply chain management
The process of smoothing transitions along the supply chain so that the firm can satisfy its customers with quality products and services, focuses on developing gith bonds with suppliers