Business Dynamics Ch 9: Production and Operations Management

fixed-position layout (major project)

allows workers to congregate around the product to be completed

Program Evaluation and Review Technique (PERT)

analyze the tasks to complete a given project, estimate the time needed to complete each task, and compute the minimum time needed to complete the whole project

Gantt chart

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

computer-aided manufacturing (CAM)

bringing computers directly into the production process

enterprise resource planning (ERP)

combines computerized functions of all divisions and subsidiaries of the firm such as finance, HR, and order fulfillment into a single integrated software program that uses a single database

interfirm process

companies work closely together to design, produce, and ship products to customers

Materials requirement planning (MRP)

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

flexible manufacturing

designing machines to do multiple tasks so they can produce a variety of products

operations management planning

helps solve many of the problems in the service and manufacturing sectors (facility location, layout, materials requirement planning, purchasing, inventory and qualiy control

Just-in-time (JIT) inventory control

keep a minimum of inventory on the premises and deliver parts, supplies, and other needs just in time to go on the assembly line

continuous processing

long production runs turn out finished goods over time

ISO 14001

organization's impact on the environment

process manufacturing

physically or chemically changes materials

Statistical Quality Control (SQC)

process managers use to continually monitor all phases of the production process and ensure quality is being built into the production from the beginning

lean manufacturing

production of goods using less of everything than in mass production: less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product

intermittent process

production run is short and the producer adjusts machines frequently to make different products

assembly process

puts together components to make a product

ISO 9001

quality of management and assurance standards

six sigma quality

sets a benchmark of just 3.4 defects/ million opportunities

process layout

similar equipment and functions are grouped together

computer-integrated manufacturing (CAM)

software programs unite CAD and CAM

operations management

specialized area in management that converts or transforms resources, like tech skills and innovation, into goods and services

mass customization

tailoring products to meet the needs of a large number of individual customers

modular layout

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

Statistical Process Control (SPC)

the process of testing statistical samples of a product components at each stage of production and plotting the test results on a graph

computer-aided design (CAD)

use of computers to design products

form utility

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

telecommuting

working from home via computer

International Organization for Standardization (ISO)

worldwide federation of national standards bodies from more than 170 countries that set global measures for the quality of individual products