Chapter 8 Management

Critical Path

A group of tasks along the PERT path that will take the longest and will cause the project or production run to be late if slowed.

Process Layout

A layout that organizes the transformation process into departments that group related processes.

Capital-intensive

A manufacture is typically more _ because of the machinery and technology used in mass production of highly similar goods.

Process Layout

A material fabrication plant or a hospital

Material-Requirements Planning (MRP)

A planning system that schedules the precise quantity of materials needed to make the product.

Computer-Integrated Manufactures (CIM)

Acronym for a complete system tat designed products, managers machines and materials and controls the operation function.

Computer-Assisted Manufacturing (CAM)

Acronym for using computers to guide and control the manufacturing process.

Computer-Assisted Design (CAD)

Acronym used for the system of production that uses computers instead of paper to design components, products, and processes.

Inventory

All raw materials, components, completed or partially completed products, and pieces of equipment a firm uses it.

Intermittent Organizations

Firms that use a process layout, which deal with products of a lesser magnitude than do project organizations, and their products are not necessarily unique but process a significant number of differences.

Customization Manufacturing

Jewelry, photocopy services, and repair services are products that most often use

True about control over variability of resources between manufactures and service organizations.

Manufactures typically have more control over variability of resources than does a service provider.

Historically, primarily because of the view that it was limited to the manufacture of physical goods, operation management has been called:

Manufacturing Production

Facility location

Strategy focuses on a company deciding where to locate its operations

Scheduling

The assignment of required tasks to departments or even specific machines, workers, or team.

Project Organization

Typically involves a large, complex project such as construction or exploration

Purchasing

involves the buying of all materials needed by the organization; also called procurement.

Perishable

A challenge of service operations is that they generally intangible. Not allowing the service to be saved, stored, resold, or returned.

Describes a manufacture

A firm that makes tangible products.

Continuous Manufacturing Organization

An assembly line is referred to as

Fixed-Position Layout Examples

An office building A new home build A bridge construction

Sampling

Appropriate for an organization when it is infeasible to inspect every part manufactured by a company.

Inputs

Are resources such as labor, capital, and energy which are converted into outputs during the transformation process.

Outputs

Are the goods, services, and ideas that result from the conversion of inputs.

Key reasons why producers relocate their plants or open a facility at a new location:

Availability of transportation Availability of raw materials Proximity to market Availability of labor

Are typical descriptions of the task of purchasing a business:

Buying desired quality products in the right quantities. Buying quality products at the lowest possible cost.

Planning the operational process for an organization involves two important areas:

Capacity Planning Facilities Planning

Statistical Process Control

Collecting and analyzing data about the quality of the production process of an organization.

Product Layout

Companies that produce automobiles, television sets, or toothpaste

In order to be a quality organization , a firm must:

Consistently produce what the customer wants.

Continuous manufacturing organizations

Create products with many similar characteristics

In PERT analysis, The path that requires the longest time from start to finish is called the:

Critical Path

Are criteria for the Malcolm Baldrige National Quality Award.

Custom focus and satisfaction Strategic planning Information and analysis

Two tasks are most important for a company prior to making any product

Determine what consumers want Design the product to satisfy wants

Flexible Manufacturing

Directs machinery by computer to adapt to different versions of similar operations.

Intermittent Organizations

Doctors, makers of custom-made cabinets, or commercial printers

ISO 9000 is designed to:

Ensure consistent product quality under many conditions.

Operations

Ensuring that products are manufactured and delivered on time, on budget, and to specifications. The role of manager in an organization.

Supply Chain

Integrates firms such as raw material suppliers, manufactures, retailers, and ultimate consumers into a seamless flow of information and products.

Just-In-Time (JIT)

Inventory method is designed to keep a minimum of parts, supplies, and other materials on hand just in time to go on the assembly line.

Statistical Process Control

Is a system in which management collects and analyzes information about the production process to pinpoint problems in the production system.

Capacity

Julie just invested in a new, high-quality elevator for her apartment construction project. She chose an elevator to carry a maximum load of 1,400 pounds per trip.

Supply chain management is also known as

Logistics

Customize

Making a unique product or providing a unique service to a specific individual.

Modular

Making an item in modules that can be combined or interchanged create different products.

Customization

Making products to meet a particular customer's needs or wants.

Input to the transformation process

Materials Energy Labor

Produce

Once management has developed an idea for a product that customers will buy, it must then plan how to _ the product.

False about Outsourcing

Outsourcing is one of three inventory management systems.

Operation Managers

Oversee the transformation process as well as plan and design systems and mage logistics and quality control.

PERT Chart

Planning and control procedure identifies the critical path of a process.

Modular Design Production

Producing different components that can later be installed into wide array of configuration.

Term for the creation of tangible products

Production

ISO 14000 is geared toward environmental impact of organizations while the focus of ISO 9000 is on

Quality

Quality Standards

Quality control refers to the processes an organization uses to maintain its established:

Product Layout

Requires that production be broken down into relatively simple tasks assigned to workers, who are usually positioned along assembly line.

Responsible for turning a product idea into a workable design that can be produced economically.

Research and development department Engineering department

Inspections

Reveals whether a product meets quality standards in an organization.

Outsourcing

The contracting of manufacturing or other tasks to independent companies outside of the firm.

Standarization

The making of identical interchangeable components or products.

Inventory Control

The process of determining how many supplies and goods are needed and keeping track of quantities on hand, where each item is, and who is responsible for it.

Routing

The sequencing of operations through which a product must pass.

TQM

Total Quality Management

Many organizations use a combination of layout design in their company.

True

Fixed-Position Layout

When a final product is not moveable or transportable such as an office building or bridge.

ISO 14000

international standard focuses on managing a company's impact on the environment.

Operation Management

specialized area in a business that converts or transforms resources into goods and services.