Intro to Business Chapter 8
Intermittent process
A manufacturing process in which a firm's manufacturing machines and equipment are changed to produce different products
Mass production
A manufacturing process that lowers the cost required to produce a large number of identical or similar products over a long period of time
Purchasing
All the activities involved in obtaining required materials, supplies, components, and parts from other firms
Operations management
All the activities required to produce goods and services
Development and implementation
Involves research activities undertaken specifically to put new or existing knowledge to use in producing goods and services
Product design
The process of creating a set of specifications from which a product can be produced
Quality control
The process of ensuring that goods and services are produced in accordance with design specifications
Scheduling
The process of ensuring that materials and other resources are at the right place at the right time
Inventory control
The process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock-out costs
Automation
The total or near-total use of machines to do work
Computer-aided design (CAD)
The use of computers to aid in the development of products
Computer-aided manufacturing (CAM)
The use of computers to plan and control manufacturing processes
Robotics
The use of programmable machines to perform a variety of tasks by manipulating materials and tools
Form utility
Utility created by people converting raw materials, finances, and information into finished products
Continuous process
A manufacturing process in which a firm produces the same product(s) over a long period of time
Computer-integrated manufacturing (CIM)
A computer system that not only helps to design products but also controls the machinery needed to produce the finished product
Materials requirements planning (MRP)
A computerized system that integrates production planning and inventory control
Lean manufacturing
A concept built on the idea of eliminating waste from all of the activities required to produce a product or sercixe
Six Sigma
A discipline approach that relies on statistical data and improved methods to eliminate defects for a firm's products and services
Product line
A group of similar products that differ only in relatively minor characteristics
International Organization for Standardization (ISO)
A network of national standards institutes and similar organizations from over 160 different countries that is charged with developing standards for quality products and services that are traded throughout the globe
Analytical process
A process in operations management in which raw materials are broken into different component parts
Synthetic process
A process in operations management in which raw materials or components are combined to create a finished product
Capital-intensive technology
A process in which machines and equipment do most of the wirk
Labor-intensive technology
A process in which people must do most of the work
Research and development (R&D)
A set of activities intended to identify new ideas that have the potential to result in new goods and services
Flexible manufacturing system (FMS)
A single production system that combines electronic machines and CIM
Reshoring
A situation in which U.S. manufacturers bring manufacturing jobs back to the United States
Just-in-time inventory system
A system designed to ensure that materials or supplies arrive at a facility just when they are needed so that storage and holding costs are minimized
Quality circle
A team of employees who meet on company time to solve problems of product wuality
Malcolm Baldrige National Quality Award
An award given by POTUS to organizations judged to be outstanding in specific managerial tasks that lead to improved quality for both products and services
Basic research
Consists of activities aimed at uncovering new knowledge. Mainly for scientific advancement.
Applied research
Consists of activities geared toward discovering new knowledge with some potential use
Planning horizon
The period during which an operational plan will be in effect
Utility
The ability of a good or service to satisfy a human need
Capacity
The amount of products or services that an organization can produce in a given time
Plant layout
The arrangement of machinery, equipment, and personnel within a production facility
Design planning
The development of a plan for converting an idea into an actual product or service
Inspection
The examination of the quality of work-in-process
