GEB 1011 CHAPTER 11
enterprise resource planning (ERP)
ERP systems manage the same inventory control and process scheduling that MRP systems manage, but they can integrate these functions with other aspects of the business, such as finance, marketing, and human resources.
make-or-buy decision
The act of deciding whether to produce an item internally or buy it from an outside supplier. Factors to consider in the decision include costs, capacity availability, proprietary and/or specialized knowledge, quality considerations, skill requirements, volume,and timing
materials requirement planning (MRP)
a computer based program used for inventory control and production planning.
Gantt chart
a tool developed by Henry Gantt in the 1920s. A Gantt chart is formatted similarly to a horizontal bar graph.It 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.
production plan
an outline of the activities undertaken to combine resources (inputs) to create goods or services (outputs)
operations management
consists of managing the activities and processes to produce and distribute products and services.
statistical quality control (SQC)
describes the set of statistical tools used to analyze each stage of the production process to endure that quality standards are being met.
process layout
groups together similar tasks, and the partially assembled product moves from one station to the next as workers perform a particular step in the production process.
ISO 9001
implements a quality management system
ISO 14001
implements an environmental management system
inventory control
includes the receiving, storing, handling, and tracking of everything in a company's stock, from raw materials to finished products.
lean production
is a set of principles concerned with reducing waste and improving flow.
supply chain
is made up of information and communication systems that work together to coordinate the path of the product and its components from raw material to finished products delivered to the consumers.
statistical process control (SPC)
is one of the tools used with SQC. SPC inspects a random sampling of products at every phase of production to show any variations that need to be corrected throughout the process.
supply chain management
is the management of activities from all organizations involved in the production process.
capacity planning
is the process of determining how much product an organization can produce.
mass customization
is the production off goods or services tailored to cost-effectively meet customers' individual needs.
fixed position layout
is used for manufacturing large items, such as ships, airplanes, and modular homes. With a fixed position layout, the product stays in one place, and the workers move around the product to complete its assembly.
product layout
is used mostly for high-volume, standardized products that can be produced in a sequential fashion, such as Crayola Crayons.
program evaluation and review technique (PERT)
map out the steps involved in a project, differentiating tasks that must be completed in a certain order from tasks that may be completed simultaneously.
assembly line
partially complete products are moved from one worker to the next on a conveyor belt.
cellular layout
places small teams of workers who handle all aspects of assembly, so each station is equipped wight he parts and tools necessary to produce a product from start to finish, and the worker moves through the workstation as he or she conducts the assembly process.
facility layout
refers to the physical arrangement of resources and people in the production process and how they interact.
production management
refers to the planning implementation, and control measures used to convert resources into finished products
computer aided design (CAD)
refers to using computer and software to create two diminutional or three diminutional models of physical parts.
flexible manufacturing system (FMS)
several machines are linked together by one central computer. All the machines in the system can process different types simultaneously.
Just-in-time (JIT) inventory control
system keeps the smallest amount possible of inventory on hand and everything else that is needed is ordered so that it arrives when it is needed.
computer-intergrated manufacturing (CIM)
systems combine design and manufacturing functions with other automated functions, such as order taking, shipment, and billing for the complete automation of a manufacturing plant.
radio frequency identification (RFID)
tag on each item, allowing a computer to keep track of the status, and quantity of each item.
mass production
the method of producing large quantities of goods at a low cost.
computer-aided manufactoring (CAM)
uses the design data to control the machinery used in the manufacturing process.
What is operations management, and what is important in determining a facility's location and layout?
- Operations management consists of managing the activities and processes to produce and distribute products and services. Operations management includes how the facility should be organized, what supplies to purchases, what materials and inventory to keep on hand, and how quality is measured and controlled. - When determining a location for a facility, companies consider their proximity to market, the cost of transporting aw materials, the presence of highways and other transportation systems, utility supply hazardous waste disposal, labor availability, living conditions, and laws and regulations. - Facility layout refers to the physical arrangement of resources and people in the production process and how they interact. the design of facility's layout is important to maximize efficiency and satisfy employees' needs. - When starting the production process, one if the first decisions that operations managers make is what needs to be manufactured and what needs to be purchased from outside suppliers. This is commonly called a make or buy decision. - Although operations management has been traditionally associated with manufacturing goods, many of the concepts also apply to the service industry.
How is manufacturing and production important to the US economy and to the global economies?
- Production is the process of getting a good or service tot he customer; it is a series of related activities, with value being added at each stage. Companies are in business to provide a service or good to consumers. The more efficiently a company can produce and deliver the product or service, the greater the profit it will generate. - Although the manufacturing industry has been declining over the years, it still accounts for more than one-fourth of the US GDP and nearly one-tenth of all US jobs. Moreover, manufacturing uses services and commodities as inputs, so manufacturing is actually responsible for a bigger share of total output. - The service industry is very important tot he US economy, and accounts for nearly 75 percent of the US GDP and about 80 percent of jobs. Service business range from small start-ups and home based businesses to large corporations that are represented on the DJIA. - Despite the push to outsource and offshore jobs and manufacturing to low-cost locations, the US manufacturing industry is till globally important. The united States is still the leading industrial power in the world.
What is production management, and what production processes are used by businesses?
- Production management refers to the planning implementation, and control measures used to convert resources into finished products. These activities are similar to those in operations management but are more focused on the products. - Mass production is the method of producing large quantities of goods at a low cost. The benefits of mass production include low cost, decreased production time, and virtually no human error, due to reliance on machinery. A major disadvantage is that mass production is inflexible, making it difficult to alter the process if an unexpected problem occurs. - Mass customization is the production off goods or services tailored to cost-effectively meet customers' individual needs. Mass customization is achieved with a flexible manufacturing system (FMS) a different system in which machines are programmed to process different part types simultaneously - allowing a manufacturer to mass produce customized products. The primary benefits of an FMS is that it provides the flexibility to make products with many slight variations. A challenge of an FMS is that it is not well suited for goods that are i high demand. - Lean production is a set of principles concerned with reducing waste and improving flow. The basis tenet of lean production is to do more with less through the elimination of wasteful overproduction , unnecessary, superfluous motion , redundant over - processing , and careless defective units.
What is supply chain management, and how does it help companies create and deliver their goods and services more effectively?
- Supply chain management is the management of activities from all organizations involved in the production process. The goal of supply chain management is to maximize value and achieve a sustainable competitive advantage. Supply chain management is important to improve efficiencies, not only within the organization, but also among all the components of productions= and distribution process. - A supply chain is made up of information and communication systems that work together to coordinate the path of the product and its components from raw material to finished products delivered to the consumers.