Business -- CH 9

Andrew groves three basic requirements of production?

-to build and deliver products in response to demands of the customer at a scheduled delivery time

what don't us producers strike fear in the heart of their competitors?

-us has much to learn from competitors -foreign competitors are using u.s technology and concepts

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.

ISO

International Organization for Standardization

PERT

Program Evaluation and Review Technique

intermittent process

a production process in which the production run is short and the machines are changed frequently to make different products -over in a bakery or toaster in a dinner

operation management

a specialized area in management that converts or transforms resources into goods and services

Enterprise Resource Planning (ERP)

combines computerized functions of all the divisions and subsidiaries of the firm into a single integrated program that uses a single database

how is operation management applied in the service sector?

creating a good experience for those who use the service being sold

production

creation of finished goods and services using the factors of productions

how does CIM unite CAD and CAM?

cuts 80% of the time needed to program machines to make parts

flexible manufacturing

designing machines to do multiple tasks so that they can produce a variety of products

why would a company be interested in meeting ISO standards?

it would show customers that the firm is concerned about quality and environmental standards

facility layout

physical arrangement of resources in the production process

just-in-time inventory

production process in which minimum inventory is kept on the site and parts suppliers and other needs are delivered just in time to go onto assembly line

how has quality control changed over time?

products were checked before being shipped out to buyers but now it is an ongoing process

what is the ultimate goal of operations managment?

provide high-quality goods and services instantaneously in response to customer demand

process layout

similar equipment and functions are grouped together

process manufacturing

that part of the production process that physically or chemically changes materials -boiling physically changes tht egg

facility location

the process of selecting a geographic location for a company operations

lean manufacturing

the production of goods using less of everything compared to mass production

critical path

the sequence of tasks that takes the longest time to complete

what are advantages of robotics?

work 24 hours, 7 days a week with great precsion

steps used in PERT

(1) analyzing and sequencing tasks that need to be done (2) estimating the time needed to complete each task (3) drawing a PERT network illustrating the information from steps 1 and 2 (4) identifying the critical path

what are the two basic goals of purchasing?

-finds the best suppliers -negotiates best price for goods and services

how can u.s manufacturers and service organizations maintain a competitive edge?

-focus on customers -having close relationships with suppliers and other companies to satisfy customers -practicing improvement -quality -save cost through site selection -using internet to unite companies that work together -adapting production techniques

some factors to consider when moving a facility to a new location

-labor cost -resources -transportation -suppliers -customers -crime rates -the quality of life -the cost of living -need to train and retrain workers

what are the factors of production?

-land -labor -capital -entrepreneurship and knowledge

CAD

The use of a computer to assist in the process of designing a part, circuit, building, etc.

fixed position layout

a layout that brings all resources required to create the product to a central location (house construction)

continuous process

a production process in which long production runs turn out finished goods overtime -conveyer belt that continuously lowers eggs into the boiling water

six sigma quality

a quality measure that allows only 3.4 defects per million opportunities

Gantt Chart

bar graph showing production managers what projects are being worked on and what stage they are in at any given time

Interfirm

companies work closely together in productions; constantly changing and evolving

what advantage can be gained using a Gantt Chart?

manager can see the production process step by step and see if things are being done on-time and make adjustments as needed

what is the benefit of sensing measurement and process control?

products can be tracked from the beginning of production to the point of delivery

the us jobs and economy is no longer manufacturing based what is it instead?

service sector this can include medical, legal, accounting, finance, entertainment, and or broadcasting

mass customization

tailoring products to meet the needs of individual customers

what is a big incentive to consider when choosing a location even if you are mainly a web-based company?

tax situation and degree of government support

modular layout

teams of workers combine to produce more complex units of the final product (building the tire)

what has been largely responsible for the increase in productivity and efficiency of us manufacturing?

technological improvments

assembly process

the part of the production process that puts together components -car made through this process puts together the frame, engine, and other parts

why might a purchasing agent choose to limit the suppliers only to one or two?

the relationship between suppliers and manufacturers is much closer

production managment

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

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

how is it possible that the us is laying off manufacturing workers, yet the amount of production is continuing to increase?

workers are more productive that companies don't need as many workers to get more done

assembly-line layout

workers do only a few tasks at a time (putting a tire on a car)

telecommuting

working from home via computer