bd chapters 7 and 9
US GDP
70% is consumer spending and 80% of jobs are in service sector
production management
All the activities managers do to help firms create goods.
Malcolm Baldrige National Quality Award
An award established by the U.S. Department of Commerce given annually to companies that excel in quality.
Gant chart
a bar graph that shows what projects are being worked on and how much has been completed
vision
a broad explanation of why the organization exists and where it is trying to go, gives the organization a sense of purpose and a set of values that unite workers in a common destiny
ISO 1400
a collection of the best practices for managing an organization's impact on the environment
materials requirement planning
a computer based operations management system that uses sales forecasts to make sure needed parts and materials are available at the right time/place
program evaluation and review technique
a method for analyzing the tasks involved in completing a given project and estimating the time needed
ISO
a non governmental organization established to promote the development of world standards to facilitate the international exchange of goods and services
statistical process control
a process of testing statistical samples of product components at each stage of production
statistical quality control
a process used to continually monitor all phases of the production process
six sigma quality
a quality measure that allows only 3-4 defects per million opportunities
operations management
a specialized area in management that converts or transforms resources into goods and services
operations management
a specialized area in management that converts/transforms resources, including human resources like technical skills and innovation into goods and services
mission statement
addresses organizations self concept, philosophy, long term survival needs, social responsibility, customer needs, social responsibility, and nature of its product or service
AI
allow managers to focus on human strengthens in areas such as strategic planning
fixed position layout
allows workers to congregate around the product
SWOT analysis
analyzes the organization's strengths and weaknesses and the opportunities and threats it faces
PERT/CPM steps
analyzing and sequencing tasks, estimating the time needed to complete each task, drawing a PERT network illustrating the first 2 steps, and identifying the critical path
policies
broad guidelines for action
process manufacturing
changes materials, physically or chemically
decision making
choosing among two or more alternative
enterprise resource planning
combines computerized functions into a single integrated software program using a single database
low cost
comes at expense of quality and flexibility during mass production
quality
consistently producing what the customer wants while reducing errors before and after delivering
production process
consists on taking the factors of production and using those inputs to produce goods, services, and ideas
3D printing
creating a product layer by layer at a time, mostly used to create prototype models
leading
creating a vision for the organization and communicating, guiding, training, coaching, and motivating others to achieve goals and objectives in a timely manner
flexible manufacturing
designing machines to do multiple tasks so they can provide a variety of products
organizing
designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organizations goals and objectives
strategies
determine the best way to use resources
strategic planning
determines the major goals of the organization and the policies, procedures, strategies, resources it will need to achieve them
operations managers
ensure products are manufactured and delivered on time, on budget, and to specifications
knowledge management
finding the right information, keeping it in a readily accessible place, and making it known to everyone in the firm
service sector
focus on quality care and attention
directing
giving explicit instructions to workers, telling them what to do to meet goals and objectives of the organization
planning teams
help monitor environment, find business opportunities, and watch for challenges
operation management planning
helps solve many of the problems in the service and manufacturing sector
external customers
include dealers who buy products to sell to others and ultimate customers who buy products for their own personal use
planning
includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives
middle management
includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling, managerial planning
operations management
includes inventory management, quality control, production scheduling, and follow up services
supervisory management
includes those directly responsible for supervising workers and evaluating their daily performance, operational control
location considerations
labor costs, availability of resources, access to transportation, proximity to suppliers, crime rates, quality of life for employees, cost of living, and need to train/retrain workforce
continuous process
long production runs turn out finished goods over time
mass production
make a large number of a limited variety of products at a very low cost
autocratic leadership
making managerial decisions w/o consulting others
control process
measures performance relative to the planned objectives and standards, rewards people for work well done, and takes corrective action when necessary
planning
mission statement, goals, and objectives
present
most productive time for American manufacturing
managers
must practice the art of getting things done through organizational resources which include workers, financial resources, information, and equipment
mission statement
outlines the organizations fundamental purpose
advancements in tech
outputs increases while number of factory workers falss
interfirm
process in which companies work closely together to design, produce, and ship products to customers
facility location
process of selecting geographic locations for a company's operations
facility layout options
product layout, process layout, cellular layout, or fixed position layout
intermittent process
production run is short and the producer adjusts machine frequency to make different products
empowerment
progressive leaders give employees the authority to make decisions on their own w/o consulting a manager
assembly process
puts together components to make a product
staffing
recruiting, hiring, motivating, and retaining the best people available to accomplish the company's objectives
managerial pyramid
shows the organization's level of management
process layout
similar equipment and functions are grouped together
human relations skills
skills that involve communication and motivation to enable managers to work w/ people
conceptual skills
skills that involve the ability to picture the organization as a whole and the relationship among its various parts
objectives
specific, short term statements detailing how to achieve the organization's goals
cellular layout
teams of workers produce more complex units of the final product
technical skills
the ability to perform tasks in a specific discipline/department
goals
the broad, long term accomplishment an organization wishes to attain
ISO 9001
the common name given to quality management and assurance standards
production
the creation of finished goods and services using factors of production
purchasing
the function that searches for high quality material resources, finds the best suppliers, and negotiates the best price for quality goods/services
top management
the highest level, consists of the president and other key company executives who develop strategic plans
facility layout
the physical arrangement of resources to most efficiently produce goods and provide services for customers
tactical planning
the process of developing detailed, short term statements about what is to be done, who is to do it, and how
management
the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources
lean manufacturing
the production of goods using less of everything than in mass production to develop a new product, less human effort, manufacturing space, investment in tools, and engineering time
just in time inventory
the production process in which a minimum of inventory is kept and parts, supplies, and other needs are delivered just in time to go on the assembly line, system used to cut storage costs
form utility
the value producers add to materials in the creation of finished goods and services
requirements of production
to build and deliver products in response to demands of the customer at a scheduled delivery time, provide and acceptable quality level, and provide everything at the lowest possible cost
customize
to make a unique product or provide a specific service to specific individuals
computer aided design
use of computers to design products
product layout
workers do only a few tasks at a time
telecommuting
working from home via computer
