MGMT CH.15 1

Inventory Management 2

1. Inventory control 2. Just-in-time (JIT) method

Importance of Operations 2

1. Is necessary for competitiveness and overall organization performance 2. Creates value and utility through the production of products and services

4 types of layouts

1. Product layout 2. Process layouts 3. Fixed-position layout 4. Cellular layouts

The process of designing work so that it can be completely or almost completely performed by machines.

Automation

High-risk decisions are due to uncertainty about future product demand and the significant costs of additional, possibly excess, capacity.

Capacity

The amount of products, services, or both that can be produced by an organization

Capacity

A physical configuration of facilities used when families of products can follow similar flow paths

Cellular layouts

Quality has become one of the most important competitive points in business today

Competition

The use of computers to design and complete products and to simulate performance so that prototypes need not be constructed

Computer-aided design (CAD)

Technology that relies on computers to design or manufacture products

Computer-assisted manufacturing (CAM)

Improved quality reduces costs from customer returns, warranty, and lawsuits for faulty products, and lost sales to future customers.

Costs

The physical locations where products or services are created, stored, and distributed

Facilities

A physical configuration of facilities arranged around a single work area; used for the manufacture of large and complex products such as airplanes

Fixed-position layout

The use of robotic systems and computers to coordinate and integrate automated production and material handling facilities

Flexible manufacturing systems (FMS)

aging the organization's raw materials, work-in-process, finished goods, and products in-transit

Inventory control

An inventory system than has necessary materials arriving as soon as they are needed (just in time) so that the production process is not interrupted

Just-in-time (JIT) method

The physical configuration of facilities, the arrangement of equipment within facilities, or both

Layout

The physical positioning or geographic site of facilities

Location

Named after a former Secretary of Commerce, this prestigious award is given annually to firms that achieve major quality improvements

Malcolm Baldrige Award

A form of business that combines and transforms resource inputs into tangible outcomes

Manufacturing

Coordinating operations management with other functions helps insure the system focuses on the elements crucial to goal attainment.

Operations Management as Control

The total set of managerial activities used by an organization to transform resource inputs into products, services, or both

Operations management

A physical configuration of facilities arranged around the process; used in facilities that create or process a variety of products

Process layouts

A physical configuration of facilities arranged around the product; used when large quantities of a single product are needed

Product layout

How many and what kinds of products or services (or both) to offer

Product-service mix

Quality enhancement programs decrease the number of defects, reduce resources dedicated to rework, and reduces the need for inspectors as employees become responsible for quality.

Productivity

Buying materials and resources needed to produce products and services

Purchasing management

Is both a relative and absolute concept

Quality

Is relevant to both products and services

Quality

The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs

Quality

The science and technology of the construction, maintenance, and use of robots

Robotics

Services are rapidly moving toward automated systems and procedures (e.g., automated teller machines).

Service Technology

An organization that transforms resources into an intangible output and creates time and place utility for its customers

Service organization

The process of managing operations control, resource and inventory acquisition and purchasing, and inventory so as to improve overall efficiency and effectiveness

Supply chain management

The set of processes and systems used by organizations to convert resources into products or services

Technology