Understanding Business Chapter 9
ISO 14000
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 MRP that combines the computerized functions of all divisions and subsidiaries of the firm (finance, human resources) into a single integrated software program that uses a single database
Just-in-time inventory control
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
Continuous process
A production process in which long production runs turn out finished goods over time
Intermittent process
A production process in which the production run is short and the machines are changed frequently to make different products
Six sigma quality
A quality measure that allows only 3.4 defects per million opportunities
Operations management
A specialized area in management that converts or transforms resources into goods and services
Grantt chart
Bar graph showing production managers what projects are being worked on and what stage they are in at any given time
Quality
Consistently producing what the customer wants while reducing errors before and after delivery to the customer
Flexible manufacturing
Designing machines to do multiple tasks so that they can produce a variety of products
1. Computer-aided design and computer-aided manufacturing 2. Flexible manufacturing 3. Lean manufacturing 4. Mass customization
Four major developments for companies to be more competitive
Critical path
In a PERT network, the sequence of tasks that takes the longest time to complete
Mass customization
Tailoring products to meet the needs of individual customers
ISO 9000
The common name given to quality management and assurance standards
Production
The creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge
Purchasing
The function in a firm that searches for high-quality materials resources, finds the best suppliers, and negotiates the best price for goods and services
Assembly process
The part of production process that puts together components
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
Statistical process control (SPC)
The 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
Statical quality control (SQC)
The 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
Lean manufacturing
The production of goods using less of everything compared to mass production
Production management
The term used to describe all the activities managers do to help their firms to create goods.
Computer-integrated manufacturing (CIM)
The uniting of computer-aided design with computer-aided manufacturing
Computer-aided design (CAD)
The use of computers in the design of products
Computer-aided manufacturing (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
Telecommuting
Working from home via computer and modem
fixed-position layout
allows workers to congregate around the product to be completed
operations management planning
helps solve many of the problems in the service and manufacturing sectors
factors of production
land, labor, capital, entrepreneurship, knowledge
Technological changes have had such a great impact on the Blank______ that this segment of the American economy will likely never employ as many people as it did in the 1950s.
manufacturing
Which sector has lost more jobs due to technological changes?
manufacturing
Recognize that service providers must focus on providing customers with quality and to compete globally.
quality care and attention
Production management has, historically, meant the activities managers do to help their firms produce __________________, whereas operations management has evolved into a specialized management area that converts resources, including human resources, to produce goods and _________________________
services
process layout
similar equipment and functions are grouped together
1. analyze and sequence the tasks that need to be done 2. estimate the time needed to complete each task 3. draw a PERT network illustrating the information from steps 1 and 2 4. identify the critical path
steps used in PERT
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