Business 101 Chapter 10

What is a key process of Six Sigma

DMAIC- stands for define, measure, analyze, improve, and control

What are the three phases of production planning?

Long-term, medium term, and short-term

process layout

arranges workflow around the production process

flexible manufacturing system (FMS)

automates a factory by blending computers, robots, machine tools, and materials-and-parts-handling machinery into an integrated system

Gantt Charts

bar graphs plotted on a time line that show the relationship between scheduled and actual production

quality control

involves creating quality standards, producing goods that meet them, and measuring finished goods and services against them.

inventory management

involves deciding how much of each type of inventory to keep on hand and the ordering, receiving, storing, and tracking of it.

scheduling

involves specifying and controlling the time required for each step in the production process

fixed-position layout

lets the product stay in one place while workers and machinery move to it as needed

three types of production

mass production, mass customization, customization

make or buy decision

the first must decide whether to make its own production materials or buy the from outside sources

Routing

the first step in production control. It sets out a work flow, the sequence of machines and operations through which a product or service progresses from start to finish

business process management

the glue to bind it all together. This technology has the power to integrate and optimize a company's sprawling functions by automating much of what it does.

critical path method (CPM)

the manager identifies all of the activities required to complete the project, the relationships between these activities, and the order in which they need to be completed.

purchasing

the process of buying production inputs from various sources (also called procurement)

continuous process

uses long production runs that may last days, weeks, or months without equipment shutdowns

short-term production planning

1 year- converts broader goals into specific production plans and materials management strategies

improving production and operations

Developing efficient methods of producing goods and services

how are the product processes classified?

How inputs are converted into outputs and the timing of the process

What does the facility's location affect?

Operating and shipping costs, and ultimately, the price of the product

critical path

The longest path through these linked activities

What are the 4 main decisions to be made in production planning?

The type of production process, site selection, facility layout, resource planning

continuous improvement

a commitment to constantly seek better ways of doing things in order to achieve greater efficiency and improve quality

perpetual inventory

a continuous updated list of inventory levels, orders, sales, and receipts, for all items

job shop

a manufacturing firm that produces goods in response to customer orders

ISO 9000

a set of five technical standards designed to offer a uniform way of determining whether manufacturing plants and service organizations conform to sound quality procedures.

Just-in-time (JIT)

based on the belief that materials should arrive exactly when they are needed for production, rather than being stored on-site

a bill of material

bill drawn up that lists the items and the number of each required to make the product

supply chain

can be thought of as the entire sequence of securing inputs, producing goods, and delivering goods to customers.

CAD/CAM systems

combine the advantages of CAD and CAM by integrating design, testing, and manufacturing control into one linked computer system

computer-integrated manufacturing (CIM)

combines computerized manufacturing processes (such as robots and flexible manufacturing systems) with other computerized systems that control design, inventory, production, and purchasing.

cellular manufacturing

combines some aspects of both product and fixed-position layouts

computer-aided design (CAD)

computers are used to design and test new products and modify existing ones.

intermittent process

short production runs are used to make batches of different products

Lean manufacturing

streamlines production by eliminating steps in the production process that do not add benefits customers want

materials requirement planning (MRP)

use a master schedule to ensure materials, labor, and equipment needed for production are at the right places in right times

computer-aided manufacturing (CAM)

uses computers to develop and control the production process.

operational managers

vital role in firms: control assets, inventories, wages, and benefits

ISO 14000

was designed in response to environmental issues such as global warming and water pollution and promotes clean production processes

Quality

when goods and services meet customer expectations by providing reliable performance.

outsourcing

when items are purchased from an outside source instead of being made internally

value-stream mapping

whereby production managers "map" the flow from suppliers through the factory to customers.

Medium-term production planning

2 years- concern the layout of factory or service facilities, where and how to obtain the resources needed, and labor issues

long-term production planning

3-5 years- focus on which goods to produce, how many to produce, and where they should be produced

Six Sigma

A quality-control method. A company-wide process that focuses on measuring the number of defects that occur and systematically eliminating them in order to get as close to "zero defects" as possible

What are the 3 stages involved in product and operations?

Production planning, production control, improving production and operations

manufacturing resource planning II

developed in the late 1980s to expand on MRP. It uses a complex computerized system to integrate data from many departments, including finance, marketing, accounting, engineering, and manufacturing

total quaity management (TQM)

emphasizes the use of quality principles in all aspects of a company's production and operations.

Malcolm Baldrige National Quality Award

established by the U.S. Congress in 1987 to recognize U.S. companies that offer goods and services of world-class quality. The award promotes awareness of quality and allows the business community to assess which quality control programs are most effective

supply-chain management

focuses on smoothing transitions along the supply chain, with the ultimate goal of satisfying customers with quality products and services

mass customization

goods are produced using only up to a point. Then the production is custom-tailored to the needs or desires of individual customers (Dell computers, Taylor Made golf clubs)

Program Evaluation and Review Technique (PERT)

helps managers identify critical tasks and assess how delays in certain activities will affect operations or production

electronic data interchange (EDI)

in which two trading partners exchange information electronically. EDI can be conducted via a linked computer system or over the internet.

operations management

managing the conversation process

mass production

manufacturing many identical goods at once (a product of the industrial revolution) (Breakfast cereal, soft drinks)

inputs

natural resources, raw materials, human resources, and capital

customization

opposite of mass production. The firm produces goods or services one at a time according to the specific needs or wants of individual customers. Each product produced is unique (custom homes, haircuts)

Production planning

planning stage. Allows the firm to consider the competitive environment and its own strategic goals to find the best production methods

outputs

products and services

product layout (assembly-line)

products that require a continuous or repetitive production process

production control

scheduling and day to day operations

inventory

supply of goods it holds for use in production or for sale to customers

enterprise resource planning

systems go a step further and incorporate information about the firm's suppliers and customers into the flow of data. ERP unites all of a firm's major departments into a single software program.

process manufacturing

the basic inputs are broken down into one or more outputs ( natural resources, raw materials -> products)

assembly process

the basic inputs are either combined to create the output or transformed

production

the creation of products and services- an essential function in every firm

E-procurement

the process of purchasing supplies and materials online, is booming

Robotics

the technology involved in designing, constructing, and operating robots.

production process

the way a good or service is greated

blockchain technology

there is the potential to automate these types of processes to cover multiple transactions with a variety of participating organizations