Modern Management Chapter 21

Capacity strategy

Is a plan of action aimed at providing the organization with the right facilities to produce the needed output at the right time.

Process strategy

Is a plan of action outlining he means& methods the organization will use to transport resources into goods & services.

Layout strategy

Is a plan of action that outlines the location & flow of all organizational resources around , into & within production & service facilities.

Location strategy

Is a plan of action that provides the organization with competitive location for it's headquarters manufacturing , services , & distribution activities.

Quality circle

Is a small group of workers that meets to discuss quality assurance of a particular project & communicate their solutions to these problems to management directly at a formal presentation session.

Decision tree analysis

Is a statistical & graphical technique that contains a series of steps showing the sequence & interdependence of decisions .

Just-in-fine inventory control

Is a technique for reducing inventories to a minimum by arranging for production components to be delivered to the facility " just in time " to be used.

Process control

Is a technique that assists in monitoring production processes

Total revenue

Is all sales dollars accumulated from selling manufactured products or services

Fixed cost

Is an expense incurred by the organization regardless of the number or products produced .

Product strategy

Is an operational plan of action outlining which goods & services an organization will produce & market.

Job design

Is an operational plan that determines who will do a specific job & how & where the job will be done.

Human resources strategy

Is an operational plan to use the organizations human resources efficiently & effectively while maintaining or improving the quality of work life.

Work method analysis

Is an operational tool use to improve productivity & ensure the safety of workers.

Materials control

Is an operations control activity that determines the flow of materials from vendors through an operations system to customers.

Budget

Is it's financial plan outlining how funds in a given period will be obtained and spent

Loss

Is the amount of the total costs of producing a product that exceeds the total revenue gained from selling the product.

Effectiveness

Is the degree to which managers attain organizational objectives " doing the right thing."

Efficiency

Is the degree to which organizational resources contribute to productivity " doing things right."

Layout

Is the overall arrangement of equipment, work areas , service areas & storage areas within a facility that produces foods & provides services .

Operations management

Is the performance of management activities that involves selecting,designing, operating, controlling, & updating production systems .

Labor force planning

Is the primary focus of the operations human resource strategy

Ratio analysis

Is the process of generating information that summarizes the financial position of an organization through the calculation of ratio based on various financial measurements that appear on the organizations balance sheet & income statements .

Break even analysis

Is the process of generating information that summarizes various levels of profit or loss associated with various levels of production.

Automation

Is the replacement of human effort by electromechanical devices in such operations as welding, materials handling, design, drafting , & decision making.

Profit

Amount of total revenue that exceeds the total cost of producing the products sold.

Variable cost

An expense that fluctuates with the number of products produced .

Work measurement methods

Are operational tools used to establish labor standards.

Operations control

Is defined as making sure operations activities are carried out as planned.

Quality assurance

Operations involving a broad group of activities aimed at ache icing the organizations quality objectives.

Productivity

The relationship between the total amount of goods or services being products (output) & the organizational resources needed to produce them. This relationship is usually expressed by Productivity = outputs ______ Inputs

Pure-prevention maintenance policy

Which degrees that facilities & equipment to be fixed only after they malfunction

Computer aided manufacturing (CAM)

Employes computers to plan & program equipment used in the production and inspection of manufactured items.

Management by exception

Is a control technique that allows only significant deviations between planned & actual performance to be brought to a managers attention

Value analysis

Is a cost-control & cost reduction technique that helps managers control operations by focusing primarily on material costs.

Control tool

Is a specific procedure technique that presents pertinent organizational information in a way that helps managers & workers develop & implement an appropriate control strategy .

Statistical Quality Control

Is the process used to determine how many products should be inspected to calculate a probability that the total number of products will meet organizational quality standards.

Computer aided design (CAD)

Systems Include several automated design technologies.

Total cost

Is the sun of the fixed& variable costs associated with production

Variable budget

Also known as flexible budget outlines the levels of resources to be allocated for each organizational activity according to the level of production within the organization .

Break even point

Is the total level of production at which the total revenue of an organization is generating to cover it's costs

Production

Is the transformation of organizational recourses into products.