BUAD Chapter 10

ISO 14000

A collection of the best practices for managing an organization's impact on the environment

Materials Requirement Planning

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

A method for analyzing the tasks involved in completing a given project, estimating the time needed to complete task, and identifying the minimum time needed to complete the total project

Enterprise Resources Planning

A newer version of materials requirement planning 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.

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. ex: as a chef, you could have a conveyor belt that continuously lowers eggs into boiling water for three minutes and then lifts them out.

Intermittent Process

A production process in which the production run is short and the machines are changed and 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 (including human resources) into goods and services.

Gantt 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

Critical Path

In a PERT network, the sequence of tasks that takes the longest time to complete. A delay anywhere along this path will cause the project or production run to be late

Mass Customization

Tailoring products to meet the needs of individual customers.

Assembly Process

That part of the production process that puts together components. ex: cars are made through an assembly process that puts together the frame, engine, and other parts

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 material resources, finds the bets suppliers, and negotiates the best prices for goods and services

Process Manufacturing

The part of the production process that physically or chemically changes materials. ex: boiling physically changes an egg

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

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

Statistical Quality Control

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. Less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product.

Production Management

The terms used to describe all the activities managers do to help their firms create goods

Computer-integrated Manufacturing

The uniting of CAD with CAM

Computer-aided Design

The use of computers in the design of products.

Computer-aided Manufacturing

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 ex: transforming silicon into computer chips

Telocommuting

Working from home via computer.