Chapter 9: Production and Operations Management (Smart book)

Quality

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

Mass Customization

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

Cellular or Modular Layout

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

Process Manufacturing

that part of the production process that physically or chemically changes materials

Facility Layout

the physical arrangement of resources (including people) in the production process

Six Sigma Quality

which sets a benchmark of just 3.4 defects per million opportunities, detects potential problems to prevent their occurrence. That's important to a company that makes 4 million transactions a day, like some banks.

Telecommuting

working from home via computer

Information technology (IT)

= computers, WiFi, e-mail, voice mail, texting, and so forth—is giving firms and employees increased flexibility to choose locations while staying in the competitive mainstream.

Program Evaluation and Review Technique (PERT)

A method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project.

Outputs

Goods, services, ideals

Inputs

Land, labor, capital, entrepreneurship, knowledge

Production Control

Planning, routing, scheduling, dispatching, follow-up

Statistical Process Control (SPC)

The process of testing statistical samples of product components at each stage of the production process and plotting those results on a graph. Any variances from quality standards are recognized and can be corrected if beyond the set standards.

Computer-Integrated Manufacturing (CIM)

The uniting of computer-aided design with computer-aided manufacturing.

Just-In-Time (JIT) Inventory Control

This system keeps a minimum of inventory on the premises—and deliver parts, supplies, and other needs just in time to go on the assembly line. Many companies have implemented this concept to cut costs

Product Layout (Assembly Line Layout)

Used to produce large quantities of a few types of products. (workers do only a few tasks at a time - older layout)

Fixed-Position Layout

When working on a major project, such as a bridge or an airplane, companies use a _____-_____ _____ that allows workers to congregate around the product to be completed.

Continuous Process

a production process in which long production runs turn out finished goods over time

Time-To-Market

another decision-making factor. As manufacturers attempt to compete globally, they need sites that allow products to move quickly, at the lowest costs, so they can be delivered to customers fast. Access to highways, rail lines, waterways, and airports is thus critical. Information technology (IT) is also important to quicken response time, so many firms seek countries with the most advanced information systems.

Gantt Chart

bar graph showing production managers what projects are being worterm-39ked on and what stage they are in at any given time.

Making Ethical Decisions

box looks at the kinds of decisions companies must make when it comes to locating.

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.

Flexible Manufacturing

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

Process Layout

frequently used in operations that serve different customers' different needs

ISO 14001

is a collection of the best practices for managing an organization's impact on the environment. Requirements for certification include having an environmental policy, having specific improvement targets, conducting audits of environmental programs, and maintaining top management review of the processes.

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.

ISO

is a nongovernmental organization established to promote the development of world standards to facilitate the international exchange of goods and services

Assembly Process

The part of the production process that puts together components.

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. The result is shorter time between orders and payment, less staff needed to do ordering and order processing, reduced inventories, and better customer service.

Intermittent Process

a production process in which the production run is short and the machines are changed frequently to make different products

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.

ISO 9001

is the common name given to quality management and assurance standards.

Production

is the creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge adds value, or utility, to materials or processes.

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 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.

Critical Path

is the sequence of tasks that takes the longest time to complete.

Lean Manufacturing

the production of goods using less of everything compared to mass production

Production Management

the term used to describe all the activities managers do to help their firms create goods

Computer-Aided Design (CAD)

the use of computers in the design of products

Computer-Aided Manufacturing (CAM)

the use of computers in the manufacturing of products

Form Utility

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