Module 7: Operations Management and Quality

Master Schedule

"the game plan" for upcoming production

utility

product's ability to satisfy a human want or need

Gantt Chart

production schedule that breaks down large projects into steps to be performed and specifies the time required to perform each step

What layout is defined as the physical arrangement of production activities that groups equipment and people according to function ?

process layout

Value-Added Analysis

process of evaluating all work activities, materials flows, and paperwork to determine the value that they add for customers

supplier selection

process of finding and choosing suppliers from whom to buy

operations control

process of monitoring production performance by comparing results with plans and taking corrective action when needed

inventory control

process of receiving, storing, handling, and counting of all raw materials, partly finished goods, and finished goods

PERT chart

production schedule specifying the sequence of activities, time requirements, and critical path for performing the steps in a project

Lean Production System

production system designed for smooth production flows that avoid inefficiencies, eliminate unnecessary inventories, and continuously improve production processes

ISO 9000

program certifying that a factory, laboratory, or office has met the quality management standards set by the International Organization for Standardization

Project Schedule

provide coordinates for completing large-scale projects

______ is the step in materials management where managers acquire the raw materials they need to produce goods, such as leather for sofas.

purchasing

When everyone in a firm internalizes responsibility for their own job performance as a key contribution to the purpose of the larger organization _______ is present.

quality ownership

outsourching

replacing internal processes by paying suppliers and distributors to perform business processes or to provide needed materials or services

operations process

set of methods and technologies used to produce a good or a service

Operations Capability (Production Capability)

special ability that production does especially well to outperform the competition

just-in-time production (JIT)

type of lean production system that brings together all materials at the precise time they are required at each production stage

Bruce's BBQ is looking into reduce waste. They are evaluating everything from customer receipts to how much electricity is used in a process called _______.

value-added analysis

Detailed Schedule

Shows day-to-day activities that will occur in production

Business Process Reengineering (BPR)

A radical redesign of a business process that improves performance, quality, and productivity

A major health insurance company finds that the biggest delay in paying claims comes from customers failing to submit receipts. After looking at the entire process, they've decided to overhaul the way claims are filed. Now customers snap them directly to the insurance company. The company has used ____ to improve its service.

Business process reengineering

For a large project, managers should use a _____ to identify the sequence of activities, the time needed to perform the various activities, and the most time consuming set of activities within the sequence.

PERT Chart

Productivity

The amount of output you generate given the amount of input

Which areas of materials management involves the storage of goods in Walmart's distribution centers?

Warehousing

Assembly Line Layout

a same-steps layout in which a product moves step by step through a plant on conveyor belts or other equipment until it is completed

Large companies such as Adidas bring parts and processes from multiple companies together to create a finished product for end consumers. Each step in this network adds value for the final customer in what is known as _______.

a supply chain

purchasing

acquisition of the materials and services that a firm needs to produce its products

quality control

action of ensuring that operations produce products that meet specific quality standards

Make-to-Order Operations

activities for one-of-a-kind or custom-made production

Make-to-Stock Operations

activities for producing standardized products for mass consumption

transportation

activities in transporting resources to the producer and finished goods to customers

Operations(Production)

activities involved in making products-goods and services-for customers

Service Operations (Service Production)

activities producing intangible and tangible products, such as entertainment, transportation, and education

Goods Operations (Goods Production)

activities producing tangible products, such as radios, newspapers, buses, and textbooks

Total Quality Management (TQM)

all activities involved in getting high-quality goods and services into the marketplace

capacity

amount of a product that a company can produce under normal conditions

Product Layout (Same-Steps Layout)

physical arrangement of production steps designed to make one type of product in a fixed sequence of activities according to its production requirements

ISO 14000

certification program attesting to the fact that a factory, laboratory, or office has improved its environmental performance

quality

combination of "characteristics of a product or service that bear on its ability to satisfy stated or implied needs"

Capacity Planning

determines the amount of a product that a company can produce under normal conditions

location planning

determining where production will happen based on costs and flexibility

performance

dimension of quality that refers to how well a product does what it is supposed to do

Consistency

dimension of quality that refers to sameness of product quality from unit to unit

layout planning

planning for the layout of machinery, equipment, and supplies

supply chain (value chain)

flow of information, materials, and services that starts with raw-materials suppliers and continues adding value through other stages in the network of firms until the product reaches the end customer

Staff Schedule

identify who and how many employees will be working, and when

Supply Chain Management (SCM)

principle of looking at the supply chain as a whole to improve the overall flow through the system

Quality Ownership

principle of total quality management that holds that quality belongs to each person who creates it while performing a job

fixed position layout

labor, equipment, materials, and other resources are brought to the geographic location where all production work is done

High-Contact System

level of customer contact in which the customer is part of the system during service delivery

low-contact system

level of customer contact in which the customer need not be part of the system to receive the service

Operations (Production) Managers

managers responsible for ensuring that operations activities create value and provide benefits to customers

Competitive Product Analysis

process by which a company analyzes a competitor's products to identify desirable improvements

Keeping track of thousands of moving-planning , organizing, and controlling the flow of these parts is known as ___________.

materials management

Managers evaluate performance by comparing plans and projections with actual outcomes and results in a process known as ______.

operations control

follow-up

operations control activity for ensuring that production decisions are being implemented

Process Layout (Custom-Product Layout)

physical arrangement of production activities that groups equipment and people according to function

warehousing

storage of incoming materials for production and finished goods for distribution to customers

Operations (Production) Management

systematic direction and control of the activities that transform resources into finished products that create value for and provide benefits to customers

Materials Management

the process by which managers plan, organize, and control the flow of materials from sources of supply through distribution of finished goods

quality improvement team

total quality management tool in which collaborative groups of employees from various work areas work together to improve quality by solving common shared production problems