chapter 9
steps used in PERT
(1) analyzing and sequencing tasks that need to be done, (2) estimating the time needed to complete each task, (3) drawing a PERT network illustrating the information from steps 1 and 2, and (4) identifying the critical path
Gantt chart
(named for its developer, Henry L. Gantt) is a bar graph, now also prepared by computer, that clearly shows what projects are being worked on and how much has been completed at any given time
proximity to customers
Companies sometimes spend millions to move location
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
time-to-market
Moving products quickly and at the lowest possible cost to customers in order to remain competitive
cellular layout
The facility layout that uses teams of workers to complete more complex units of the final product
fixed position
When working on a major project, such as a bridge or an airplane, companies use a fixed position layout that allow workers to congregate around the product to be completed
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
intermitten process
a short production run with frequent adjustments to machines
computer aided design (CAD)
businesses ranging from construction companies to carmakers to video game designers depend on 3D modeling software to create new products
mass customization
catering to a large number of individuals through product design that meets specific customer needs is the goal
production process
consists of taking the factors of production (land etc,) and using those inputs to produce goods, services, and ideas. Planning, routing, scheduling, and the other activities are the means to accomplish the objective output
program evaluation and review technique (PERT)
for monitoring the progress of production was developed in the 1950's for conducting nuclear submarines. 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
production management
has described the activities that helped firms create goods
operations management planning
helps solve many of the problems in the service and manufacturing sectors. These include facility location, facility layout, material requirement planning, purchasing, inventory control, and quality control
ISO 9001
important is that the european union (EU) demands that companies that want to do business with the EU be certified by ISO standards
assembly line layout
in which workers do only a few tasks at a time, to a modular layout, in which teams of workers combine to produce more complex units of the final product
ISO 14001
is a collection of the best practices for managing an organization's impact on the environment. As an environmental management system, it does not prescribe a performance level
materials requirement planning (MRP)
is 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
facility
is a significant question because, once the decision has been made and implemented the firm must live with it due to the high costs involved Quality of life issues for employees should be considered by a company when choosing a proper location
operations management
is a specialized area in management that converts or transforms resources, including human resources like technical skills and innovation into goods and services
process layout
is one in which similar equipment and functions are grouped together . The order in which the product visits a function depends on the design of the item. This allows for flexibility
production
is the creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge
purchasing
is 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
is the physical arrangement of resources, including people, to most efficiently produce goods and provide services for customers. Facility layout depends greatly on the processes that are to be performed
facility location
is the process of selecting a geographic location for a company's operations
statistical quality control (SQC)
is the process some managers use to continually monitor all phases of the production process and ensure quality is being built into the product from the beginning
lean manufacturing
is 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 Ex. A company becomes lean by continuously increasing its capacity to produce high quality goods while decreasing its need for resources
critical path
is the sequence of tasks that takes the longest time to complete. We use the word critical because a delay anywhere along this path will cause the project or production run to be late.
form utility
is the value producers add to materials in the creation of finished goods and services Ex. by transforming silicon into computer chips or putting services together to create a vacation package
continuous process
is when long production runs turn out finished goods over time
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
process manufacturing
physically or chemically changes materials Ex. boiling physically changes an egg
assembly process
puts together components (eggs, toast, and coffee) to make a product (breakfast).
six sigma quality
sets a benchmark of just 3.4 defects per million opportunities, detects potential problems to prevent their occurrence.
computer-aided manufacturing (CAM)
the next step to bring computers directly into the production process
customize
to make a unique product or provide a specific service to specific individuals
Telecommuting
working from home via computer, is a major trend in business. Companies that no longer need to locate near sources of labor will be able to move to areas where is land is less expensive and the quality of life may be higher