Intro to Business Chapter #11

operations management

Consists of managing the activities and processes to produce and distribute goods and services

statistical quality control

Continual monitoring of each stage of the entire production process

production management

The planning, implementation, and control measures used to convert resources into finished products. (focused on products)

total quality management

Unlike final inspection methodologies, involves every factor in producing high-quality goods—management, customers, employees, and suppliers. At any point, employees and leaders are aiming to produce high quality.

ISO Standards

Worldwide standards of quality for goods and services

flexible manufacturing system

a system in which machines are programmed to process different part types simultaneously— allowing a manufacturer to mass produce customized products

utility supply

availability of public infrastructure services (electricity, water, natural gas, and communications)

Computer-Integrated Manufacturing (CIM)

combine design and manufacturing functions with other automated functions, such as order taking, shipment, and billing for the complete automation of a manufacturing plant

Materials Requirement Planning

computer-based program used for inventory control and production planning. determines which parts will be needed to finish the job and compares these findings to the current inventory and places an order if needed.

Computer-Aided Design (CAD)

create two-dimensional or three-dimensional models of physical parts.

production plan

description of how resources are to be used to develop a product in a specific way

process layout

groups together similar tasks, and the partially assembled product moves from one station to the next as workers perform a particular step in the production process

Gantt Chart

horizontal bar graph used to lay out each task in a project, the order in which these tasks must be completed, and how long each task will take.

mass customization

production of goods or services tailored to meet customers' individual needs cost- effectively

PERT Chart

program evaluation and review technique. Maps out various steps involved in a project, differentiating tasks that must be completed in a certain order from tasks that have to be completed simultaneously.

lean production

set of principles concerned with reducing waste and improving flow

just-in-time inventory control

system keeps the smallest amount of inventory on hand as possible, and everything else that is needed is ordered so that it arrives just in time to be used. Storing fewer items and using items right away can reduce storage costs.

enterprise resource planning

systems can do the same inventory control and process scheduling that MRP can do, but they can integrate these functions with all the other aspects business that management would like to tie together, such as finance and human resources.

Mass production

the method of producing large quantities of goods at a low cost

mass customization

the production of good or services tailored to meet customers' individual needs cost- effectively

production layout

used mostly for high- volume, standardized products that can be produced in a sequential fashion.

Computer-Aided Manufacturing (CAM)

uses the design data to control the machinery used in the manufacturing process

Backward scheduling

where you are given a shipping or due date and you have to determine the start date and the most efficient schedule based on when everything has to be finished.

forward scheduling

you start with the date materials are available, then create the most efficient schedule, and then determine a shipping date based on that schedule