survey of business Chapter 8

ISO 14001

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

ISO 9001

common name given to quality management and assurance standards

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

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

flexible manufacturing

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

purchasing

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

continuous process

is one in which long production runs turn out finished goods over time

form utility

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

Just-in-time (JIT) inventory control

minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered just in time to go on the assembly line

enterprise resource planning (ERP)

newer version of MRP combines the computerized functions of all the divisions and subsidiaries of the firm

facility layout

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

process manufacturing

physically and chemically changes materials

facility location

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

statistical process control (SPC)

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

lean manufacturing

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

intermittent process

production run is short and the machines are changed frequently to make different products

six sigma quality

quality measure that allows only 3.4 defects per million opportunities

statistical quality control (SQC)

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

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

assembly process

the part of production process that puts together components

computer-integrated manufacturing (CIM)

the uniting of computer-aided design with computer-aided manufacturing

computer-aided manufacturing (CAM)

the use of computer in the manufacturing of products

Computer-aided design (CAD)

the use of computers in the design of products

telecommuting

working from home via computer