Business Chapter 9 Production and Operation Management

ISO 14000

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

Program Evaluation 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 project.

Six Sigma Quality

A quality measure that allows only 3.4 defects per million opportunities.

Process Manufacturing

Part of the production process that physically or chemically changes materials.

Computer-Aided Design (CAD)

Use of computers in the design of products.

Gantt Chart

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

Materials Requirement Planning (MRP)

Computer-based operation management system that uses sales forecasts to make sure that needed parts and materials are available at the right time and place.

Quality

Consistently producing what the consumer wants while reducing errors before and after delivery to the consumer.

Production

Creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge.

Flexible Manufacturing

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

Purchasing

Function in a firm that searches for high-quality material resources, finds the best suppliers, and negotiates the best price for goods and services.

Critical Path

In a PERT network, the sequence of tasks that takes the longest time to complete.

Enterprise Resource Planning (ERP)

Newer version of materials requirement planning (MRP) that combines the computerized functions of all the divisions and subsidiaries of the firm-such as finance, human resources, and order fullfillment- into a single integrated software program that uses a single database.

Facility Layout

Physical arrangement of resources (including people) in the production process.

Facility Location

Process of selecting a geographic location for a company's operation.

Statistical Process Control (SPC)

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.

Lean Manufacturing

Production of goods using less of everything compared to mass customization.

Just-in-time Inventory Control (JIT)

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.

Intermittent Process

Production process in which the production run is short and the machines are changed frequently to make different products.

Operations Management

Specialized area in management that converts or transforms resources (including human resources) into goods and services.

Mass Customization

Tailoring products to meet the needs of individual customers.

Production Management

Term used to describe all the activities managers do to help their firms create goods.

ISO 9000

The common name given to quality management and assurance standards.

Statistical Quality Control (SQC)

The process some measures use to continually monitor all the phases of the production process to assure that quality is being built into the product from the beginning.

Computer-Integtrated Manufacturing (CIM)

The uniting of computer-aided design with computer-aided manufacturing.

Form Utility

The value producers add to materials in the creation of finished goods and services.

Computer-Aided Manufacturing (CAM)

Use of computers in the manufacturing of products.

Telecommuting

Working from home via computer.