Intro to Business- Chapter 9

Improvements in US manufacturing

- Computer-aided design and manufacturing - Flexible manufacturing- designing machines to do multiple tasks so they can produce a variety of products - Lean manufacturing- using less of everything than in mass production - Mass manufacturing

Top-paying service jobs

- Legal services - Medical - Entertainment - Accounting - Finance - Management

Goal of Lean Manufacturing

- less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product - A company becomes lean by continuously increasing its capacity to produce high-quality goods while decreasing its need for resources

Decision to move: Facility Location for Manufacturers

-They consider labor costs -availability of resources, including labor -access to transportation that can reduce time to market -proximity to suppliers -proximity to customers -crime rates -quality of life for employees -cost of living -the need to train or retrain the local workforce

Continuous Process

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

ISO 14001

a collection of the best practices for managing an organization's impact on the environment

fixed-position layout

allows workers to congregate around the product to be completed

Enterprise resource planning (ERP)

combines the computerized functions of all the divisions and subsidiaries of the firm (finance, human resources, and order fulfillment) into a single integrated software program that uses a single database

Materials requirement planning (MRP)

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

Quality

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

Production

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

Production Management

described the activities that helped firms create goods

Purchasing

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

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

ISO

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

Facility layout

physical arrangement of resources, including people, to most efficiently produce goods and provide services for customers

Facility Location

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

Lean Manufacturing

production of goods using less of everything than in mass production

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

Six Sigma Quality

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

process layout

similar equipment and functions are grouped together

computer-integrated manufacturing (CIM)

software programs unite CAD and CAM

Operations management

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

Mass Customization

tailoring products to meet the needs of a large number of individual customers, is now practiced widely

modular layout

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

ISO 9001

the common name given to quality management and assurance standards

Customize

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

Form Utility

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

assembly-line layout

workers do only a few tasks at a time

Telecommuting

working from home via computer

Flexible Manufacturing

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

purchasing

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

Statistical Process Control (SPC)

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

Statistical Quality Control (SQC)

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

computer-aided design (CAD)

the use of computers to design products, businesses ranging from construction companies to carmakers to video game designers depend on 3D modeling software to create new products.

computer-aided manufacturing(CAM)

the use of software to control machine tools and related ones in the manufacturing of workpieces.

The idea behind mass production

to make a large number of a limited variety of products at very low cost