Chapter 15

fixed-position layout

A physical configuration of facilities arranged around a single work area; used for the manufacture of large and complex products such as airplanes

productivity

An economic measure of efficiency that summarizes what is produced relative to resources used to produce it

just-in-time (JIT) method

An inventory system that has necessary materials arriving as soon as they are needed (just in time) so that the production process is not interrupted

service organization

An organization that transforms resources into an intangible output and creates time or place utility for its customers

robot

Any artificial device that is able to perform functions ordinarily thought to be appropriate for human beings

purchasing management

Buying materials and resources needed to produce products and services

technology

The set of processes and systems used by organizations to convert resources into products or services

manufacturing

A form of business that combines and transforms resource inputs into tangible outcomes

process layout

A physical configuration of facilities arranged around the process; used in facilities that create or process a variety of products

product layout

A physical configuration of facilities arranged around the product; used when large quantities of a single product are needed

cellular layout

A physical configuration of facilities used when families of products can follow similar flow paths

ISO 9000:2000

A set of quality standards created by the International Organization for Standardization and revised in 2000

SQC

A set of specific statistical techniques that can be used to monitor quality; includes acceptance sampling and inprocess sampling

ISO 14000

A set of standards for environmental performance

total quality management (TQM) (quality assurance)

A strategic commitment by top management to change its whole approach to business in order to make quality a guiding factor in everything it does

computer-assisted manufacturing

A technology that relies on computers to design or manufacture products

product-service mix

How many and what kinds of products or services (or both) to offer

inventory control

Managing the organization's raw materials, work in process, finished goods, and products in transit

Malcolm Baldrige Award

Named after a former secretary of commerce, this prestigious award is given annually to firms that achieve major quality improvements

outsourcing

Subcontracting services and operations to other firms that can perform them cheaper or better

capacity

The amount of products, services, or both that can be produced by an organization

value-added analysis

The comprehensive evaluation of all work activities, materials flows, and paperwork to determine the value that they add for customers

layout

The physical configuration of facilities, the arrangement of equipment within facilities, or both

facilities

The physical locations where products or services are created, stored, and distributed

location

The physical positioning or geographic site of facilities

automation

The process of designing work so that it can be completely or almost completely performed by machines

benchmarking

The process of learning how other firms do things in an exceptionally high-quality manner

supply chain management

The process of managing operations control, resource acquisition and purchasing, and inventory so as to improve overall efficiency and effectiveness

cycle time

The time needed by the organization to develop, make, and distribute products or services

operations management

The total set of managerial activities used by an organization to transform resource inputs into products, services, orboth

quality

The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs