Business 102: chapter 9

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ISO 14000

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

material 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 tasked 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.

enterprising resources planning (ERP)

a newer version of materials requirement planning (MRP) that combines the computerized functions of all the divisions and subsidiaries of the firm- such as finance, human resources, and order fulfillment-into a single integrated software program that uses a single database.

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.

continuous process

a production process in which long production runs turn out finished goods over time.

intermittent process

a production process in which the production run is short and the machines are changed frequently to make different products.

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 (including human resources) into goods and services.

Gantt chart

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

quality

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

flexible manufacturing

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

critical path

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

mass customization

tailoring products to meet the needs of individual customers.

process manufacturing

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

assembly process

that part of the production process that puts together components.

ISO 9000

the common name given to quality management and assurances standards

production

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

purchasing

the function in a firm 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) in the production process

facility location

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

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.

statistical 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.

production management

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

computer-integrated manufacturing (CIM)

the uniting of computer-aided design with computer aided manufacturing

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.

telecommuting

working from home via computer


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