Chapter 11

materials requirement planning

A computer based program used for inventory control and production planning.

Just in Time inventory control

A firm maintains the smallest amount of inventory possible, with inventory being ordered as it is actually needed.

Assembly line

A mass production process.

Six Sigma

A method that seeks to virtually eliminate defects by implementing a quality focus in every aspect of the organization. Strives for continuous improvement.

Gantt chart

A tool developed by Henry Gantt in the 1920's. Formatted similarly to a horizontal bar graph. Used to lay out each project task, the order in which each task must be completed, and how long each task should take.

Sequencing

Assigning the order in which jobs are processed.

flexible manufacturing system

Enables manufacturers to produce large quantities of customized products.

product layout

Generally used for high volume, standardized products made sequentially on an assembly line. Ex) Crayola Crayons

inventory control

Includes the receiving, storing, handling, and tracking of everything in a company's stock.

total quality management

Involves making ongoing improvements to products, services, and processes. This can be accomplished by undertaking a plan do check act cycle.

program evaluation and review technique

Maps out the steps involved in a project, differentiating tasks that must be completed in a certain order from tasks that may be completed simultaneously.

make or buy decision

One of the first decisions that operations managers make. Determine if the company will make the entire product or if the product will be assembled from a combination of parts manufactured in house and parts manufactured or purchased outside the organization.

mass production

Producing large quantities of goods at a low cost.

quality control

Refers the techniques, activities, and processes used to guarantee that a certain good or service meets a specified level of quality.

computer aided design

Refers to using a computer and software to create two dimensional or three dimensional computer models of parts or products.

Cellular layout

Small teams of workers are grouped together in work stations and handle all aspects of the assembly of a product.

radio frequency identification

Tags attached to products. Both bar codes and RFID tags store all the specific information for each item, such as its cost, stock number, and storage location.

operations management

The administration and planning of business operations to produce and distribute goods and services as efficiently as possible.F

Purchsing

The task of acquiring the materials and services needed in the production process.

statistical process control

Tool that random samples of products are checked at each phase of production to see if there are any variations that need to be corrected.

process layout

Used mostly to produce low volume, or batches, or customized products. Ex) Cake

enterprise resource planning

Used to monitor a firm's inventory and process schedules but can integrate these functions with other aspects of the business, such as a firm's finance, marketing, and human resource functions.

continuous flow production

a method that produces discrete units of products in large numbers one by one continuously and rapidly. Although its a cost effective method, it is doesn't allow products to be customized.

lean production

a set of principles concerned with reducing waste and improving the flow of processes. Eliminating overproduction, long wait times as products move through production, needless transportation, excess inventory, superfluous motions, and redundant processes are all aspects of lean production.

Loading

assigning job to a specific machine or an entire work center.

computer integrated manufacturing

combine design and manufacturing functions with other automated functions, such as order taking, shipment and billing, for the complete automation of manufacturing plant.

supply chain

consists of all of the suppliers, business partners, and service providers, as well as sourced manufacturers, distributors, retailers, and transporters, that take part in the producing a product and delivering it to the customer.

statistical quality control

describes the set of statistical tools used to analyze each stage of the production process to ensure that quality standards are being met.

backward scheduling

given a shipping or due date, and you need to determine the start date and the most efficient production schedule based on when everything must be finished.

ISO 9001

implements a quality management system

ISO 14001

implements an environmental management system.

intermittent processes

production runs are shorter, so machinery can be changed over between them to accommodate product changes.

scheduling

refers to the efficient organization of equipment, facilities, labor, and materials.

facility layout

refers to the physical arrangement of resources and people in the production process and how they interact.

production management

refers to the planning, implementation and control measures used in the process to convert resources into finished products.

forward scheduling

start with the date that materials are available, create the most efficient production schedule.

supply chain management

the management of activities from all organizations involved in the production process.

capacity planning

the process of determining how much of a product an organization can produce to meet its demand. It requires balancing the maximum amount of product an organization is capable of producing and the quantity of the good or service demanded by its customers.

production

the process of getting a good or a service to the customer; it is a series of related activities, with value being added as each activity or stage is completed.

mass customization

the production of goods or services tailored to meet customers' individual needs cost effectively.

fixed position layout

used to manufacture large items, such as ships, airplanes, and modular homes. The product stays in one place, and the workers move around the product to complete its assembly.

computer aided manufacturing

uses the design data to control the machinery used in the manufacturing process.