Chapter 9

ISO 9000

A globally recognized family of standards for quality management systems.

Mass Customization

A manufacturing approach in which part of the product is mass produced and the remaining features are customized for each buyer.

Quality Assurance

A more comprehensive approach of companywide policies, practices, and procedures to ensure that every product meets quality standards.

Six Sigma

A rigorous quality management program that strives to eliminate deviations between the actual and desired performance of a business system.

Supply Chain

A set of connected systems that coordinates the flow of goods and materials from suppliers all the way through to final customers.

System

An interconnected and coordinated set of elements and processes that converts inputs to desired outputs.

Outsourcing

Contracting out certain business functions or operations to other companies.

Inventory Control

Determining the right quantities of supplies and products to have on hand and tracking where those items are.

Capacity Planning

Establishing the overall level of resources needed to meet customer demand.

Inventory

Goods and materials kept in stock for production or sale.

Critical Path

In a PERT network diagram, the sequence of operations that requires the longest time to complete.

Just-in-Time (JIT)

Inventory management in which goods and materials are delivered throughout the production process right before they are needed.

Quality Control

Measuring quality against established standards after the good or service has been produced and weeding out any defective products.

Value Webs

Multidimensional networks of suppliers and outsourcing partners.

Production and Operations Management

Overseeing all the activities involved in producing goods and services.

Lean Systems

Systems (in manufacturing and other functional areas) that maximize productivity by reducing waste and delays.

Procurement

The aquisition of the raw materials, parts, components, supplies, and finished products required to produce goods and services.

Supply Chain Management (SCM)

The business procedures, policies, and computer systems that integrate the various elements of the supply chain into a cohesive system.

Customized Production

The creation of a unique good or service for each customer.

Mass Production

The creation of identical goods or services, usually in large quantities.

Productivity

The efficiency with which an organization can convert inputs to outputs.

Scalability

The potential to increase production by expnading or replicating its initial production capacity.

Statistical Process Control (SPC)

The use of random sampling and tools such as control charts to monitor the production process.

Offshoring

Transferring a part or all of a business function to a facility (a different part of the company or another company entirely) in another country.