Ch 10 - Operations Management: Goods and Services

gantt chart

a chart that is formatted similarly to a horizontal bar graph and is used to lay out each task in a project, the order in which these tasks must be completed, and how long each task should take

make-or-buy decisions

a decision about what needs to be manufactured and what needs to be purchased from outside suppliers

fixed-position layout

a formal in which the product stays in one place (fixed position) while workers and machinery move to the product to complete tasks rather than vice versa

materials requirement planning

a type of software system used to schedule and monitor the use of components an other materials in a manufacturing operation

just-in-time inventory control

an inventory control system that keeps the smallest amount of inventory on hand as possible, and everything else that is needed in ordered so that it arrives just in time to be used

international organization for standardization

an organization dedicated to creating worldwide standards of quality for goods and services

total quality management

emphasizes the use of quality principles in all aspects of a company's production and operations

enterprise resource planning

give companies the ability to streamline the various workflow and share information across department by consolidating information into a central database accessible to various system modules

value-stream mapping

identifies all the flow and resources required to deliver a product: people, technologies, physical facilities, communication and transportation channels, policies, and procedures

bill of material

lists the items and the number of each required to make a specific product

operations management

the organized directions and control of the processes that transform resources (inputs) into finished goods and services (outputs). also called production management

facility layout

the physical arrangement of resources, the people in the production process, and how they interact

purchasing

the task of buying the materials and services needed in the production process. also called procurement

computer-aided design

the use of computer to create two-dimensional models of physical parts

quality control

the use of techniques, activities, and processes to guarantee that a certain good or service meets a specific level of quality

flexible manufacturing system

uses one central computer to link together several machines that can process different part types simultaneously

manufacturing resource planning

uses software to integrate data from many departments, including manufacturing, finance, marketing, and human resources

statistical process control

uses statistical sampling of products at every phase of production and displays the results on a graph to show potential variations that need to be corrected

computer-aided manufacturing

uses the design data to control the machinery used in the manufacturing process

production plan

when well developed and efficiently executed, ensures a smoothly run operations process and a product that provides utility

process layout

a format in which workers who perform similar tasks on similar equipment are grouped together. also called job-shop or functional layout

mass production

a method of producing large quantities of goods at a low cost; relies on machines and automated assembly lines to mass produce goods that are identical and adhere to certain standards of quality

six sigma

a method that seeks to eliminate defects by removing variation in outcomes and measuring and analyzing manufacturing process to see if standards are being met

ISO 9000

a set of five technical standards of quality management excreted by the international organizations for standardization to provide a uniform way of determining whether organizations conform to sounds quality procedures

radio frequency identification

a tag that allows a computer to keep track of the status and quantity of each item

assemble line

used to move partially completed products from one worker to the next on a conveyer belt. also called a production line

product layout

a format in which equipment or work processes are arranged according to the progressive steps by which the product is made. it is used mostly when large quantities of a product must be produced. also called flow-shop layout

cellular layout

a format that combines aspects from both product and fixed-position layout: workers are arranged into self-controlled, stand-alone production units (or cells of small work teams). also called group technology layout

lean production

a set of principles concerned with reducing waste and improving flow that evolved from the original Toyota production system first used in Japan in the 1980's

e-procurment

an online purchasing system connecting companies and their business processes directly with suppliers while managing all interactions between them

computer-integrated manufacturing

combines design and manufacturing functions with other functions such as order taking, shipment, and billing

mass customization

combines the low unit cost of mass production processes with the flexibility of producing goods or services tailored to meet individual customer's needs

efficiency

completing a task or producing a product at the lowest cost

effectiveness

completing tasks and producing products that create the greatest value

operatios planning

includes four decisions: 1) the type of production process 2) the facility location 3) the facility layout 4) resource planning

inventory control

includes receiving, storing, handling, and tracking of everything in a company's stock, from raw materials to finished products. Inventory often makes up a large portion of a business's expenses

supply chain management

invokes the logistics of obtaining all the necessary inputs that go into a production process (inbound logistics), managing the actual production process (materials handling and operations control). and managing the physical distribution (outbound logistics) of getting the proper quantities of produced products when and where they want them

ISO 14000

launched after ISO 9000, a set of standard designed to promote clean production processes in response to environmental issues such as global warning and water pollution

operations managers

managers who are responsible for managing and supervising all the activities that occur when transforming resources into goods or services, such as setting schedules, making buying decisions, an overseeing quality control

human factor

refers to how a company's location decision affects the people in a surrounding community and vice versa

capacity

the amount of a product or service that a company can produce under normal working conditions in a given time period

statistical quality control

the continual monitoring of each stage of the entire production process to ensure that quality standards are being met at every stage

scheduling

involves specifying and controlling the time required for each step in the production process as well as making the most efficient use of equipment, facilities, labour, and materials

program evaluation and review technique

maps out the various steps involved in a project, differentiating tasks that must be completed in a certain order from tasks that may be completed simultaneously

utility supply

refers to the availability of public infrastructure services such as power, water, and communications

law-contact service process

services that do not require the customer to be present, such as a utility company, an auto-repair shop, or the chequing process at a bank

high-contact service processes

services that require the customer to be present, such as a public transit system, a hair salon, or a dentist

master production schedule

shows which products will be produced, when production will occur, and what resources will be used during the scheduled time

production

the process of getting a good or service to the customer; it is a series of related activities, with value being added at each stage

supply chain

the sequence of organizations - their facilities and activities - that are involved in producing (right from the raw materials) and delivering (all the way to the consumer) a good or service

value

the value of a product equals the ratio of the product's benefits to its costs (value=benefits/costs)

routing

the way in which goods are transported (to a client, from a supplier, or any other combination) via water, rail, truck, or air.