Chapter 9, X-100, Exam 2

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Production Management

Activities managers do to help firms create goods

PERT Diagrams

Analyzing and sequencing tasks, estimating time, drawing network, identifying critical path

Gantt Charts

Bar graph showing projects and completion progress

ISO 14001

Best practices for managing an organization's impact on the environment

Quality

Consistently producing what the customer wants while reducing errors

Production

Creation of finished goods and services using factors of production

Product

Item offered for sale, can be a good or service

Resources

Items needed to convert raw materials into products

Factors Affecting Facility Location Decisions

Labor cost, availability of qualified labor, number of available workers, cost to acquire facility, proximity to important resources or groups, transportation availability and costs, quality of life for employees, local laws and regulations, financial support of local and state government

Process Manufacturing

Part of production process that physically or chemically changes materials

Assembly Process

Part of production process that puts together components

Facility Location

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

Facility Layouts

Product (assembly line), Process, Fixed position

Lean Manufacturing

Production of goods using less compared to mass production

ISO 9001

Quality management and assurance standards

Six Sigma Quality

Quality measure that allows only 3.4 defects per million opportunities

Operations Management

Specialized area that converts resources into goods and services

Supply Chain Management

System of procurement, operations, logistics, and marketing channels

Mass Customization

Tailoring products to meet the needs of individual customers

Computer-aided Design

Use of computers in the design and manufacturing of products

Form Utility

Value producers add to materials in creation of goods and services


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