mgmt 1 chapter 9

what are the benefits of ERP

- shorter time between the order and payment - less staff needed for processing orders - reduced inventories - better customer service

what are the steps to PERT

1. analyzing and sequencing tasks that need to be done 2. estimating time needed to complete each task 3. drawing PERT network illustrating 1 and 2 4. identifying critical path

gantt chart

a bar graph that shows what projects are being worked on and how much has been completed at any given time

product management

activities that help firms create goods

fixed position layout

allows workers to congregate around the product to be completed

how does a company become lean?

by continuously increase capacity to producing high quality goods, decreasing the need for resources

materials requirement planning (MRP)

computer based operations management system that uses sales forecasts to make sure needed parts/materials are available at the right time/place

quality control

consistently producing what the consumer wants while reducing errors

flexible manufacturing

designing machines to do multiple tasks to produce a variety of goods

facility location

finding a sit that makes it easy for consumers to use services and communicate needs

purchasing

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

operations management planning

helps solve problems in the service and manufacturing sectors

continuous process

long production runs turn out finished goods over time

program evaluation and review technique (PERT)

method for analyzing tasks in a given project, estimating the time needed to complete a task, identifying minimum time needed to complete total project

just in time inventory control (JIT)

minimum of inventory kept on premises of parts, supplies, other needs are delivered just in time to go - cuts cost of storage - required accurate production schedule and coordination with suppliers

enterprise resource planning (ERP)

newer version of MRP, combines computerized functions of all divisions and subsidiaries of the firm into a single integrated software program that uses a single database.

facility layout

physical arrangement of resources (including people)

lean manufacturing

production of goods using less of everything than in mass production - less human effort - less manufacturing space - less investment in tools

assembly process

putting together parts to make a product

critical path

sequence of tasks that take the longest time to complete

intermittent process

short production runs to make variety of products

process layout

similar equipment and functions are grouped together; the order depends on design, which allows for flexibility

operations management

specialized area in management that converts or transforms resources into goods and services

modular layout

teams of workers combine to produce more complex units of the final product

form utility

the value producers add to materials in the creation of finished goods and services

computer integrated manufacturing (CIM)

uniting CAD and CAM - computers control the entire production process

computer aided design (CAD)

using computers for designing models - custom design - meets needs of small markets - little increase in cost

computer aided manufacturing (CAM)

using computers in manufacturing products

assembly line layout

workers do only a few tasks at a time