Business Midterm 101 TESU Chapter 7-9

iso 14000

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

Materials Requirement Planning (MRP)

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

Planning

A management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives.

Staffing

A management function that includes hiring, motivating, and retaining the best people available to accomplish the company's objectives

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.

Enterprise Resource Planning (ERP)

A newer version of MRP, combines computerized functions into a single integrated software program using a single database.

just-in-time inventory control

A production process in which a 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.

intermittent process

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

Operations Management

A specialized area in management that converts or transforms resources (including human resources) into goods and services.

hierarchy

A system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person.

organization chart

A visual device that shows relationships among people and divides the organization's work; it shows who reports to whom.

Matrix Organization

An organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line-and-staff structure.

decentralized authority

An organization structure in which decision-making authority is delegated to lower-level managers more familiar with local conditions than headquarters management could be.

line organization

An organization that has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor.

Bureaucracy

An organization with many layers of managers who set rules and regulations and oversee all decisions.

Decision making

Choosing among two or more alternatives.

Brainstorming

Coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas.

Benchmarking

Comparing an organization's practices, processes, and products against the world's best.

enabling

Giving workers the education and tools they need to make more decisions.

free-reign

Leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives.

PMI

Listing all the pluses for a solution in one column, all the minuses in another, and the implications in a third column.

Supervisory Management

Managers who are directly responsible for supervising workers and evaluating their daily performance.

goals

The broad, long-term accomplishments an organization wishes to attain.

Production

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

middle management

The level of managements that includes general managers. Division managers, and branch and plant managers who are responsible for tactical planning and controlling.

Transparency

The presentation of a company's facts and figures in a way that is clear and apparent to all stakeholders.

Management

The process of accomplishing the goals of an organization through the effective use of people and other resources.

problem solving

The process of solving the everyday problems that occur. Problem solving is less formal than decision making and usually calls for quicker action.

economies of scale

The situation in which companies can reduce their production costs if they can purchase raw materials in bulk; the average cost of goods goes down as production levels increase.

formal organization

The structure that details lines of responsibility, authority, and position; that is, the structure shown on organization charts.

computer-integrated manufacturing (CIM)

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

organizing

a management function that includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organization's goals and objectives

Controlling

a management function that involves establishing clear standards to determine whether or not an organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not

SWOT analysis

a planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats

continuous process

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

Six Sigma Quality

a quality measure that allows only 3.4 defects per million opportunities

virtual corporation

a temporary networked organization made up of replaceable firms that join and leave as needed

vision

an encompassing explanation of why the organization exists and where it's trying to head

centralized authority

an organization structure in which decision-making authority is maintained at the top level of management

Flat Organizational Structure

an organization structure that has few layers of management and a broad span of control

inverted organization

an organization that has contact people at the top and the chief executive officer at the bottom of the organization chart

tall organization structure

an organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management

Mission Statement

an outline of the fundamental purposes of an organization

Grantt Chart

bar graph showing production managers what projects are being worked on and what stage they are in at any given time

quality

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

leading

creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve the organization's goals and objectives

flexible manufacturing

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

staff personnel

employees who advise and assist line personnel in meeting their goals

line personnel

employees who are part of the chain of command that is responsible for achieving organizational goals

knowledge management

finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm

cross-functional self-managed teams

groups of employees from different departments who work together on a long-term basis

critical path

in a PERT network, the sequence of tasks that takes the longest time to complete

participative leadership

leadership style that consists of managers and employees working together to make decisions

autocratic

leadership style that involves making managerial decisions without consulting others.

restructuring

redesigning an organization so that it can more effectively and efficiently serve its customers

human relations skills

skills that involve communication and motivation; they enable managers to work through and with people

Technical skills

skills that involve the ability to perform tasks in a specific discipline or department

conceptual skills

skills that involve the ability to picture the organization as a whole and the relationship among its various parts

mass customization

tailoring products to meet the needs of individual customers

process manufacturing

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

assembly process

that part of the production process that puts together components

ISO 9000

the common name given to quality management and assurance standards

Departmentalization

the dividing of organizational functions into separate units

purchasing

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

top management

the highest level of management, consisting of the president and other key company executives who develop strategic plans.

chain of command

the line of authority that moves from the top of a hierarchy to the lowest level

span of control

the optimal number of subordinates a manager supervises or should supervise

facility layout

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

real time

the present moment or the actual time in which something takes place

Strategic Planning

the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals

tactical planning

the process of developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done

contingency planning

the process of preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives

facility location

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

operational planning

the process of setting work standards and schedules necessary to implement the company's tactical objectives

Statistical Process Control

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.

Statistical Quality Control

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

lean manufacturing

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

informal organization

the system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organization

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

core competencies

those functions that the organization can do as well as or better than any other organization in the world

Networking

using communications technology and other means to link organizations and allow them to work together on common objectives

organizational culture

widely shared values within an organization that provide unity and cooperation to achieve common goals

telecommuting

working from home via computer

digital natives

young people who have grown up using the internet and social networking

objectives

Specific, short-term statements detailing how to achieve the organization's goals.