Midterm 2 - Reading Definitions
operations management
A specialized area in management that converts or transforms resources (including human resources) into goods and services. -creating a good experience for those who use the service
just-in-time (JIT) inventory control
a production process in which a minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered just in time to go on the assembly line.
materials requirement planning (MRP)
computer-based operations management system that uses sales forecasts to make sure needed parts and materials are available at the right time and place
maintaining quality
consistently producing what the customer wants while reducing errors before and after delivery.
flexible manufacturing
designing machines to do multiple tasks so they can produce a variety of goods
mass production
making a large number of a limited variety of products at very low cost
mass customization
tailoring products to meet the needs of a large number of individual customers
production process
taking the factors of production and using those inputs to produce goods, services, and ideas through planning, routing, scheduling, etc.
ISO 9001
the common name given to quality management and assurance standards
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 goods and services.
facility layout
the physical arrangement of resources, including people, to most efficiently produce goods and provide services.
facility location
the process of selecting a geographic location for a company's operations
lean manufacturing
the production of goods using less of everything than in the mass production: less human effort, less manufacturing space, less investment in tools, and less engineering
computer-aided design (CAD)
the use of computers to aid in the development of products
customize
to make a unique product or provide a specific service to specific individuals
inter-firm process
using an internet-focused strategy, outsourcing design, production, and shipping to other firms
telecommuting
working from home via computer