chapter 9

steps used in PERT

(1) analyzing and sequencing tasks that need to be done, (2) estimating the time needed to complete each task, (3) drawing a PERT network illustrating the information from steps 1 and 2, and (4) identifying the critical path

Gantt chart

(named for its developer, Henry L. Gantt) is a bar graph, now also prepared by computer, that clearly shows what projects are being worked on and how much has been completed at any given time

proximity to customers

Companies sometimes spend millions to move location

Just in time (JIT) inventory control

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

time-to-market

Moving products quickly and at the lowest possible cost to customers in order to remain competitive

cellular layout

The facility layout that uses teams of workers to complete more complex units of the final product

fixed position

When working on a major project, such as a bridge or an airplane, companies use a fixed position layout that allow workers to congregate around the product to be completed

enterprise resource planning (ERP)

a newer version of MRP, combines the computerized functions of all the divisions and subsidiaries of the firm--such as finance, human resources, and order fulfillment--into a single integrated software program that uses a single database

intermitten process

a short production run with frequent adjustments to machines

computer aided design (CAD)

businesses ranging from construction companies to carmakers to video game designers depend on 3D modeling software to create new products

mass customization

catering to a large number of individuals through product design that meets specific customer needs is the goal

production process

consists of taking the factors of production (land etc,) and using those inputs to produce goods, services, and ideas. Planning, routing, scheduling, and the other activities are the means to accomplish the objective output

program evaluation and review technique (PERT)

for monitoring the progress of production was developed in the 1950's for conducting nuclear submarines. PERT users 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

production management

has described the activities that helped firms create goods

operations management planning

helps solve many of the problems in the service and manufacturing sectors. These include facility location, facility layout, material requirement planning, purchasing, inventory control, and quality control

ISO 9001

important is that the european union (EU) demands that companies that want to do business with the EU be certified by ISO standards

assembly line layout

in which workers do only a few tasks at a time, to a modular layout, in which teams of workers combine to produce more complex units of the final product

ISO 14001

is a collection of the best practices for managing an organization's impact on the environment. As an environmental management system, it does not prescribe a performance level

materials requirement planning (MRP)

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

facility

is a significant question because, once the decision has been made and implemented the firm must live with it due to the high costs involved Quality of life issues for employees should be considered by a company when choosing a proper location

operations management

is a specialized area in management that converts or transforms resources, including human resources like technical skills and innovation into goods and services

process layout

is one in which similar equipment and functions are grouped together . The order in which the product visits a function depends on the design of the item. This allows for flexibility

production

is the creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge

purchasing

is the function that searches for high-quality material resources, finds the best suppliers, and negotiates the best price for quality goods and services

facility layout

is the physical arrangement of resources, including people, to most efficiently produce goods and provide services for customers. Facility layout depends greatly on the processes that are to be performed

facility location

is the process of selecting a geographic location for a company's operations

statistical quality control (SQC)

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

lean manufacturing

is the 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 Ex. A company becomes lean by continuously increasing its capacity to produce high quality goods while decreasing its need for resources

critical path

is the sequence of tasks that takes the longest time to complete. We use the word critical because a delay anywhere along this path will cause the project or production run to be late.

form utility

is the value producers add to materials in the creation of finished goods and services Ex. by transforming silicon into computer chips or putting services together to create a vacation package

continuous process

is when long production runs turn out finished goods over time

quality

means consistently producing what the customer wants while reducing errors before and after delivery.

flexible manufacturing

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

process manufacturing

physically or chemically changes materials Ex. boiling physically changes an egg

assembly process

puts together components (eggs, toast, and coffee) to make a product (breakfast).

six sigma quality

sets a benchmark of just 3.4 defects per million opportunities, detects potential problems to prevent their occurrence.

computer-aided manufacturing (CAM)

the next step to bring computers directly into the production process

customize

to make a unique product or provide a specific service to specific individuals

Telecommuting

working from home via computer, is a major trend in business. Companies that no longer need to locate near sources of labor will be able to move to areas where is land is less expensive and the quality of life may be higher