Intro. to Business Chapters 7, 8, & 9
Operations Management Planning Helps Solve Problems like
-facility location -materials requirement planning -inventory control -facility layout -purchasing -quality control
Developments Making U.S. Companies More Competitive
1) CAD 2) flexible manufacturing 3) lean manufacturing 4) mass customization 5) robotics 6) 3D printing
Steps in PERT
1) analyzing and sequencing tasks 2) estimating the time needed to complete each task 3) drawing a PERT network illustrating the first two steps 4) identifying the critical path
Grave's Basic Product Requirements
1) build and deliver products in response to the demands of the customer 2) to provide an acceptable quality level 3) to provide everything of the lowest possible cost
ISO 14001
a collection of the best practices for managing an organization's impact on the environment.
Materials 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 tasks 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.
Enterprise Resource 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.
S.W.O.T. Analysis
a planning tool used to analyze an organizations strengths, weaknesses, opportunities, and threats
just-in-time (JIT) inventory system
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.
Six Sigma
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.
Organization CHart
a visual chart that shows relationships among people and divides the organizations work, it shows who reports to to whom
International Organization for Standardization (ISO)
a worldwide federations of national standards bodies
Robotics
allows manufacturing to continue 24/7 with great precision
Fixed-Position Layout
allows workers to congregate around the product to be completed
Bueraurcracy
an organization with many layers of managers who set rules and regulations and oversee all decisions
Tall Structure
an organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management
Flat Structure
an organizational structure that has few layers of management and a broad span of control
Organizing
assigning tasks, establish procedure, prepare a structure, developing employees, place employees *provides resources*
Gantt Chart
bar graph showing production managers what projects are being worked on and what stage they are in at any given time
Goals
broad, long-term accomplishments an organization wishes to attain
Economies of Scale
companies can reduce their production cost by purchasing raw materials in bulk
Quality
consistently producing what the customer wants while reducing errors before and after delivery to the customer
Production
creation of finished goods and services using the factors of production
Flexible Manufacturing
designing machines to do multiple tasks so that they can produce a variety of products
Tactical Planning
detailed, short-term statements
Core Competencies
functions that the organization can do as well as or better than any other organization in the world
Enabling
giving workers the education and tools they need to make decisions
Cross-Functional Self-Managed Teams
groups of employees from different departments who work together on a long-term basis
Leading
guide and motivate employees, give assignments, explain routines, classifying policies, provide feedback *guide, coach, motive*
Staffing
hiring, motivating, and retaining the best people to accomplish the company's objective
Factors of Production
land, labor, capital, entrepreneurship, and knowledge
CHain of Command
line of authority that moves from the top of the hierarchy to the lowest level
Continuous Process
long production runs turn out finished goods over time
Strategic Planning
major goals, policies and strategies
Autocratic Leadership
make managerial decisions without consulting others
Participative/Democratic Leadership
manager and employees work together to make decisions
Free-Rein Leadership
managers set strategic direction and objectives. employees are relatively free to do whatever it takes to accomplish those objectives
Controlling
measure results, monitor performance, reward outstanding performance, taking corrective action
Span of Control
optimum number of subordinates a manager supervises or should supervise
4 Aspects of Management
planning, leading, organizing, controlling
Management Functions
planning, organizing, leading, controlling
Contingency Planning
preparing alternative courses of action, can be used if primary plan does not work
Statistical Process Control (SPC)
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 Qualify Control (SQC)
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
3D Printing
products are created one layer at a time
Planning
setting goals, developing strategies, determine needed resources, setting standards *understand trends*
Division of Labor
setting up different groups
Process Layout
similar equipment and functions are grouped together
Matrix Organization
specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line-and-staff structure.
Objectives
specific, short-term statements detailing how to achieve the organization's goals
S.W.O.T.
strengths, weaknesses, opportunities, and threats
Hierarchy
system where one person is at the top of an organization and there is a ranked or sequential ordering from the top down
Mass Customizations
tailoring products to meet the needs of individual customers
Modular Layout
teams of workers combine to produce more complex units of the final product
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 9001
the common name given to quality management and assurance standards
Departmentalization
the dividing of organizational functions into separate units
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
Lean Manufacturing
the production of goods using less of everything compared to mass production
Intermittent Process
the production tun is short and the machines are changed frequently to make different products
Production Management
the term used to describe all the activities managers do to help their firms create goods
CAD
the use of computers in the design of products
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
CUA
uniting of computer-aided design with computer-aided manufacturing
Networking
using communications technology and other means to link organizations and allow them to work together on common objectives
Vision
what an organization aspires to be (long-term)
Decentralized Authority
when decisions-making authority is delegated to lower-level managers more familiar with local condition than headquarters management could be
Centralized Authority
when decisions-making authority is maintained at the top level of management at the company's headquarters
Mission Statement
why an organization exists
Operational Planning
work standards to implement tactical objectives
Assembly Line Layout
workers do only a few tasks at a time