Chapter 10

continuous improvement

A commitment to constantly seek better ways to achieve greater efficency and improve quality.

perpetual inventory

A continuously updated list of inventory levels, orders, sales, and recipts

fixed-position layout

A facility arrangement in which the product stays in one place and workers and machhinery move to it as needed

process layout

A facility arrangement in which work flows according to the production process. All workers performing similar tasks are grouped together, and products pass from one workstation to another

product layout

A facility arrangement in which workstations or departments are arranged in a line with products moving along the line

bussiness process management

A unified system that has the power to intergrate and optimize a company's sprawling fuctions by automating much of what is does.

Gantt charts

Bar graphs plotted on a time line that show the relationship between scheduled and actual production

just-in-time

Based on the belief that materials should arrive exactly when they are needed for production, rather than being stored on site.

lean manufacturing

Can be defined as streamlining production by eliminating steps in the production process that do not add benefits that customers are willing to pay for

CAD/CAM systems

Combine the advantages of CAD and CAM by integrating design, testing, and manufacturing control into one linked computer system.

computer-aided design

Computers are used to design and test new products and modify existing ones.

quality

Goods and services that meet customer expectations by providing reliable performance

ciritcal path

In a critical path method network, the longest path through the linked activites

operations management

Management of the production process

cellular manufacturing

Production technique that uses small, self-contained production units, each performing all or most of the tasks necessary to complete a manufacturing order

Total Quality Management

Refers to the use of quality principles in all aspects of a company's production and operations.

value-stream mapping

Routing technique that uses simple icons to visually represent the flow of materials and information from suppliers through the factory to customers

production

The creation of products and services by turning inputs, such as natural resources, raw materials, human resources, and capital, into outputs, which are products and services

inventory management

The determenation of how much of each type of inventory a firm will keep on hand and the ordering, recieving, storing, and tracking of it

supply chain

The entire sequence of securing inputs, producing goods, and delivering goods to customers.

mass production

The manufacture of many identical goods at once.

purchasing

The process of buying production inputs from various sources, also called procurement

e-procurement

The process of purchasing supplies and materials online using the Internet

production process

The way a good or service is created

flexible manufacturing system

These systems combine automated workstations with computer-controlled transportation devices.

computer-aided manufacturing

Uses computers to develop and control the production process

inventory

The supply of goods that a firm holds for use in production or for sale to customers

robotics

The technology involved in designing, constructing, and operating robots.

Malcom Baldrige National Quality Award

This award recognizes U.S. companies that offer goods and services of world-class quality. The award's most important criteria are a firm's effectiveness at meeting customer expectations.

manufacturing planning II

A complex computerized system that intergrates data from many departments to allow managers to more accurately forecast and assess the impact of production plans on profitability

enterprise resource planning

A computerized resource planning system that incorporates information about the firm's suppliers and customers with its internally generated data

materials requirement planning

A computerized system of controlling the flow of resources and inventory. A master schedule is used to ensure that the materials, labor, and equipment needed for production are at the right places in the right amounts at the right times

bill of material

A list of items and the number of each required to make a given product

job shop

A manufacturing firm that produces goods in response to the customer orders

mass customization

A manufacturing process in which goods are mass-produced up to a point and then custom tailored to the needs or desires of individual customers

process manufacturing

A production process in which basic input is broken down into one or more outputs

assembly process

A production process in which the basic inputs are either combined to create the output or transformed into the output

continious process

A production process that uses long production runs lasting days, weeks, or months without equipment shutdowns, generally used for high-volume, low variety products with standardized parts

intermittent process

A prodution process that uses short production runs to make batches of different products, generally used for low-volume, high-variety products

Six Sigma

A quality control proces that relies on defining what needs to be done to ensure quality, measuring and analyzing production results statistically, and finding ways to improve and control quality

critical path method

A scheduling tool that enables a manager to determine the critical path of activites for a project, the activites that will cause the entire project to fall behind schedule if they are not completed on time

program evaluation and review technique

A scheduling tool that is similar to the CPM method but assigns three estimates for each activity, allows managers to anticipate delays and potential problems and schedule accordingly

ISO 9000

A set of five technical standards of quality management created by the International Organization for Standardization to provide a uniform way of determining whether manufacturing plants and service organizations conform to the sound quality procedures

ISO 14000

A set of technical standards designed by the International Organization for Standardization to provide a uniform way of determing whether manufacturing plants and service organizations conform to the sound quality procdures

computer-intergrated manufacturing

Combines computerized manufacturing processes with other computerized systems that control design, inventory, production, and purchasing.

quality control

Involves creating those quality standards and measuring finished products and services against them.

outsourcing

The purchase of items from an outside source rather than making them internally

customization

The production of goods or services one at a time according to the specific needs or wants of invidivudal customers

production planning

The aspect of operations management in which the firm considers the competitive enviornment and its own strategic goals in an effort to find the best production methods

routing

The aspect of production control that involves setting out the work flow, the sequence of machines and operations through which the product or services progresses from start to finish

scheduling

The aspect of production control that involves specifying and controlling the time required for each step in the production process

make-or-buy decision

The determination by a firm of whether to make its own production materials or to buy them from outside sources

electronic data interchange

The electronic exchange of information between two trading partners

supply chain management

The process of smoothing transitions along the supply chain so that the firm can satisfy its customers with quality products and services, focuses on developing gith bonds with suppliers