Understanding Business Chapter 9 (77 terms)

ISO 14000

A collection of the best practices for managing an organization's impact on the environment

Materials requirement planning (MRP)

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

Program evaluation and review technique (PERT)

A method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project

Enterprise resource planning (ERP)

A newer version of MRP that combines the computerized functions of all divisions and subsidiaries of the firm (finance, human resources) into a single integrated software program that uses a single database

Just-in-time 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

Continuous process

A production process in which long production runs turn out finished goods over time A production process like that of a chemical plant where the process has long runs during production

Operations management

A specialized area in management that converts or transforms resources into goods and services planning helps to solve issues related to facility layout, facility location, and inventory control.

facility layout

Arrangement of resources, including people, to most efficiently produce goods and services

Grantt chart

Bar graph showing production managers what projects are being worked on and what stage they are in at any given time

Flexible manufacturing

Designing machines to do multiple tasks so that they can produce a variety of products

CAM is the computer aided process used to design products.

False

Critical path

In a PERT network, the sequence of tasks that takes the longest time to complete

quality

In addition to inventory management, scheduling, and follow-up services, a critical function of operations management is ____________ control.

What are two characteristics of lean manufacturing?

It uses less resources. It takes less time.

Choose an input to the production process below.

Knowledge

factors

Land, labor, capital, entrepreneurship, and knowledge are all _______________to the production process.

Which of the following are outputs in the production process?

Services Goods

ISO 9000

The common name given to quality management and assurance standards

time to market

The facility location decision factor known as Blank______, refers to moving products quickly and inexpensively to customers.

Purchasing

The function in a firm that searches for high-quality materials resources, finds the best suppliers, and negotiates the best price for goods and services

at a very low cost

The main idea behind mass production is to produce a large number of a limited variety of products Blank______.

Assembly process

The part of production process that puts together components

Facility Layout

The physical arrangement of resources (including people) in the production process Facility layout is important for manufacturing plants because facilities layout decisions can have a huge impact on the firm's costs.

Statistical process control (SPC)

The process of testing statistical samples of product components at each stage of the production process and plotting those results on a graph. Any variances from quality standards are recognized and can be corrected if beyond the set standards

Statical quality control (SQC)

The process some managers use to continually monitor all phases of the production process to assure that quality is being built into the product from the beginning

Lean manufacturing

The production of goods using less of everything compared to mass production Using less human effort, less manufacturing space, less investment in tools, and less engineering time is the basic premise

Production management

The term used to describe all the activities managers do to help their firms to create goods.

Computer-integrated manufacturing (CIM)

The uniting of computer-aided design with computer-aided manufacturing

sensor

When a computerized data control ________________ detects a problem, it notifies someone to make needed changes.

Telecommuting

Working from home via computer and modem

fixed-position layout

allows workers to congregate around the product to be completed

operations management planning

helps solve many of the problems in the service and manufacturing sectors

Operations management is a specialized area of management that includes

inventory management production scheduling

factors of production

land, labor, capital, entrepreneurship, knowledge

Technological changes have had such a great impact on the Blank______ that this segment of the American economy will likely never employ as many people as it did in the 1950s.

manufacturing

Which sector has lost more jobs due to technological changes?

manufacturing

The production process should be a sequence of steps starting with inputs, followed by production control, and ending with:

outputs finished products

Industrial robots have completely changed manufacturing because they:

reduce costs can work 24/7 with great precision improve productivity

modular layout

teams of workers combine to produce more complex units of the final product

According to Andrew Grove, the former chairman of Intel, three basic requirements of production are:

timely delivery, quality, and low cost

additive

3D printing is a production process also known as_________________ manufacturing.

Intermittent process

A production process in which the production run is short and the machines are changed frequently to make different products A short production run with frequent adjustments to machines is considered

information technology

Because of ____________________ _________________, more flexibility in choice of business location has increased while allowing firms to remain competitive.

Quality control

Consistently producing what the customer wants while reducing errors before and after delivery to the customer

1. Computer-aided design and computer-aided manufacturing 2. Flexible manufacturing 3. Lean manufacturing 4. Mass customization

Four major developments for companies to be more competitive

Choose the correct order of steps in the production process.

Inputs, production control, outputs

interfirm

Many rapidly growing firms are outsourcing areas like engineering, design, and manufacturing with the use of the Internet, thus, developing a(n) ______ approach to operations management.

customers

Sometimes a company is willing to spend millions to move their facility from one location to another in order to increase buyer traffic, drawing more potential __________________________ .

Mass customization

Tailoring products to meet the needs of individual customers

Production

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

Computer-aided design (CAD)

The use of computers in the design of products

Computer-aided manufacturing (CAM)

The use of computers in the manufacturing of products

Form utility

The value producers add to materials in the creation of finished goods and services. The value added to inputs during the creation of a product when a butcher produces a specific cut of beef.

customize

To __________ is to make a unique product or service for a specific individual.

Computer-aided design was united with computer-aided manufacturing to bring computer-integrated manufacturing to the business world.

True

Computers are used to design products when CAD is employed.

True

Examples of a problem solved by operations management planning as it relates to manufacturing include:

facility location inventory control

So far, the high cost of CAD/CAM techniques has limited their use to large, expensive manufactured goods such as automobiles.

false

Select inputs into the production process.

labor land capital

Recognize that service providers must focus on providing customers with quality and to compete globally.

quality care and attention

process layout

similar equipment and functions are grouped together

Process manufacturing

that part of the production process that physically or chemically changes materials

continuously/improve

Service providers, like manufacturers, must _________________ ___________________to maintain their competitive edge.

Facility location

The process of selecting a geographic location for a company's operations is a significant question because, once the decision has been made and implemented, the firm must live with it due to the high costs involved.

Using an Internet-focused strategy, operations managers are outsourcing design, production, and shipping to other firms. This process is called a(n):

inter-firm process

The goal of operations management is to

keep operations running efficiently create a good experience for the customer

Uses of sensors to control manufacturing processes include:

measuring humidity the measurement of the thickness of material

Time-to-market decisions involve:

moving products quickly to customers at the lowest cost

Select the three basic requirements of production.

provide everything at the lowest possible cost build and deliver products in response to customer demands provide an acceptable quality level

Recognize that service providers must focus on:

providing customers with quality care maintaining strong relationships with their suppliers providing customers with attention to their needs

Production management has, historically, meant the activities managers do to help their firms produce __________________, whereas operations management has evolved into a specialized management area that converts resources, including human resources, to produce goods and _________________________

services

The purpose of the Malcolm Baldrige National Quality Award is that it sets a(n) ___ for overall company quality using several key areas for measurement.

standard

PERT

1. analyze and sequence the tasks that need to be done 2. estimate the time needed to complete each task 3. draw a PERT network illustrating the information from steps 1 and 2 4. identify the critical path

An additive manufacturing process that creates a product one layer at a time using a nozzle similar to those in inkjet printers is:

3D printing

Six sigma quality

A quality measure that allows only 3.4 defects per million opportunities

Which of the following is an advantage related to conducting quality control throughout production instead of at the end of the production line?

Finding defects prior to completion saves expensive resources.

reducing time to market

If a company has a goal of ______, it might choose to locate its facilities to an area that has access to major highways, ports, railways, and airports.

precision

Industrial robots can work 24 hours a day, seven days a week with ______________ great .