Operations Management - Ch. 3 Product Design and Process Selection
product life cycle
A series of stages that products pass through in their lifetime, characterized by changing product demands over time.
computer-aided design (CAD)
A system that uses computer graphics to design new products.
process flow analysis
A technique used for evaluating a process in terms of the sequence of steps from inputs to outputs with the goal of improving its design.
break-even analysis
A technique used to compute the amount of goods a company would need to sell to cover its costs.
computer-integrated manufacturing
A term used to describe the integration of product design, process planning, and manufacturing using an integrated computer system.
Flexible Manufacturing System (FMS)
A type of automated system that combines the flexibility of intermittent operations with the efficiency of continuous operations.
continuous process
A type of process that operates continually to produce a high volume of a fully standardized product.
project process
A type of process used to make a one-at-a-time product exactly to customer specifications.
line process
A type of process used to produce a large volume of a standardized product.
batch process
A type of process used to produce a small quantity of products in groups or batches based on customer orders or specifications.
Global Positioning Systems (GPS)
A type of wireless technology that uses satellite transmission to communicate exact locations.
Radio frequency identification (RFID)
A wireless technology that uses memory chips equipped with radio antennas attached to objects used to transmit streams of data.
concurrent engineering
An approach that brings together multifunction teams in the early phase of product design in order to simultaneously design the product and the process.
Design for Manufacture (DFM)
A series of guidelines to follow in order to produce a product easily and profitably.
process flowchart
A chart showing the sequence of steps in producing the product or service.
service package
A grouping of physical, sensual, and psychological benefits that are purchased together as part of the service.
Numerically controlled machine
A machine controlled by a computer that can perform a variety of tasks.
throughput time
Average amount of time it takes a product to move through the system.
Fixed Costs
Costs a company incurs regardless of how much it produces.
Variable Costs
Costs that vary directly with the amount of units produced.
Early Supplier Involvement (ESI)
Involving suppliers in the early stages of product design.
Enterprise Resource Planning (ERP)
Large software programs used for planning and coordinating all resources throughout the entire enterprise.
bottleneck
Longest task in the process.
process performance metrics
Measurements of different process characteristics that tell how a process is performing.
intermittent operations
Processes used to produce a variety of products with different processing requirements in lower volumes.
repetitive operations
Processes used to produce one or a few standardized products in high volume.
make-to-order strategy
Produces products to customer specifications after an order has been received.
assemble-to-order strategy
Produces standard components that can be combined to customer specifications.
make-to-stock strategy
Produces standard products and services for immediate sale or delivery.
efficiency
Ratio of actual output to standard output.
productivity
Ratio of outputs over inputs.
process velocity
Ratio of throughput time to value-added time
utilization
Ratio of time a resource is used to time it is available for use.
Information Technology (IT)
Technology that enables storage, processing, and communication of information within and between firms.
remanufacturing
The concept of using components of old products in the production of new ones.
Manufacturability
The ease with which a product can be made.
reverse engineering
The process of disassembling a product to analyze its design features.
service design
The process of establishing all the characteristics of the service, including physical, sensual, and psychological benefits.
benchmarking
The process of studying the practices of companies considered 'best-in-class' and comparing your company's performance against theirs.
automation
Using machinery to perform work without human operators.