Midterm 2 - Reading Definitions

operations management

A specialized area in management that converts or transforms resources (including human resources) into goods and services. -creating a good experience for those who use the service

just-in-time (JIT) inventory control

a production process in which a minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered just in time to go on the assembly line.

materials requirement planning (MRP)

computer-based operations management system that uses sales forecasts to make sure needed parts and materials are available at the right time and place

maintaining quality

consistently producing what the customer wants while reducing errors before and after delivery.

flexible manufacturing

designing machines to do multiple tasks so they can produce a variety of goods

mass production

making a large number of a limited variety of products at very low cost

mass customization

tailoring products to meet the needs of a large number of individual customers

production process

taking the factors of production and using those inputs to produce goods, services, and ideas through planning, routing, scheduling, etc.

ISO 9001

the common name given to quality management and assurance standards

production

the creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge

purchasing

the function that searches for high-quality material resources, finds the best suppliers and negotiates the best price for goods and services.

facility layout

the physical arrangement of resources, including people, to most efficiently produce goods and provide services.

facility location

the process of selecting a geographic location for a company's operations

lean manufacturing

the production of goods using less of everything than in the mass production: less human effort, less manufacturing space, less investment in tools, and less engineering

computer-aided design (CAD)

the use of computers to aid in the development of products

customize

to make a unique product or provide a specific service to specific individuals

inter-firm process

using an internet-focused strategy, outsourcing design, production, and shipping to other firms

telecommuting

working from home via computer