Business 101 chapter 10

perpetual inventory

a continuously updated list of inventory levels, orders, sales, and receipts, for all major items

production control

controlling quality and costs, scheduling, and the actual day-to-day operations

inventory management

involves deciding how much of each type of inventory to keep on hand and the ordering, receiving, storing, and tracking of it the goal: to keep down the costs of ordering and holding inventories while maintaining enough on hand for production and sales

MRPII (Manufacturing Resource Planning)

uses a complex computerized system to integrate data from many departments including finance, marketing, accounting, engineering, and manufacturing generates a production plan, management reports, forecasts, and financial statements

What is a way to determine the best inventory levels?

Look at the three costs: 1)Holding inventory 2)frequent reordering 3)not keeping enough inventory on hand

Mrp

Material Requirements Planning; uses a master schedule to ensure that the materials, labor, and equipment needed for production are at the right places in the right amounts at the right times based on forecasts fo demand for the company's products helps ensure a smooth flow of finished products

ERP (Enterprise Resource Planning)

Systems go a step further and incorporate info about the firm's suppliers and customers into the flow of data unites all of a firm's major departments into a single software program

production planning

decide where, when, and how

improving production and operations

developing more efficient methods of producing

Total Quality Management (TQM)

emphasizes the use of quality principles in all aspects of a company's production and operations Focuses on continuous improvement 6 sigma

mass customization

goods are produced using mass production techniques, but only up to a point

3 phases of production planning

long term- which goods to produce, how many to produce, and where they should be produce medium term- concern for the layout of factory or service facilities, where and how to obtain the resources needed for production and labor issues short term- converts these broader goals into specific production plans and materials management strategies

operation management

managing the conversion process

mass production

manufacturing many identical goods at once during the industrial revolution the emphasis in mass production is on keeping manufacturing costs low by producing uniform products using repetitive and standardized processes

production and operations management 3 main types

production planning, production control, improving production and operations

production

the creation of products and services, essential function

customization

the opposite of mass production, firm produces goods or services one at a time according to the specific needs or wants of individual customers

inventory

the supply of goods it holds for use in production or for sale to customers