Business Dynamics Ch 9: Production and Operations Management
fixed-position layout (major project)
allows workers to congregate around the product to be completed
Program Evaluation and Review Technique (PERT)
analyze the tasks to complete a given project, estimate the time needed to complete each task, and compute the minimum time needed to complete the whole project
Gantt chart
bar graph that clearly shows what projects are being worked on and how much has been completed at any given time
computer-aided manufacturing (CAM)
bringing computers directly into the production process
enterprise resource planning (ERP)
combines computerized functions of all divisions and subsidiaries of the firm such as finance, HR, and order fulfillment into a single integrated software program that uses a single database
interfirm process
companies work closely together to design, produce, and ship products to customers
Materials requirement planning (MRP)
computer-based operations management system that uses sales forecasts to make sure needed parts and materials are available at right time and place
flexible manufacturing
designing machines to do multiple tasks so they can produce a variety of products
operations management planning
helps solve many of the problems in the service and manufacturing sectors (facility location, layout, materials requirement planning, purchasing, inventory and qualiy control
Just-in-time (JIT) inventory control
keep a minimum of inventory on the premises and deliver parts, supplies, and other needs just in time to go on the assembly line
continuous processing
long production runs turn out finished goods over time
ISO 14001
organization's impact on the environment
process manufacturing
physically or chemically changes materials
Statistical Quality Control (SQC)
process managers use to continually monitor all phases of the production process and ensure quality is being built into the production from the beginning
lean manufacturing
production of goods using less of everything than in mass production: less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product
intermittent process
production run is short and the producer adjusts machines frequently to make different products
assembly process
puts together components to make a product
ISO 9001
quality of management and assurance standards
six sigma quality
sets a benchmark of just 3.4 defects/ million opportunities
process layout
similar equipment and functions are grouped together
computer-integrated manufacturing (CAM)
software programs unite CAD and CAM
operations management
specialized area in management that converts or transforms resources, like tech skills and innovation, into goods and services
mass customization
tailoring products to meet the needs of a large number of individual customers
modular layout
teams of workers combine to produce more complex units of the final product
Statistical Process Control (SPC)
the process of testing statistical samples of a product components at each stage of production and plotting the test results on a graph
computer-aided design (CAD)
use of computers to design products
form utility
value producers add to materials in the creation of finished goods and services
telecommuting
working from home via computer
International Organization for Standardization (ISO)
worldwide federation of national standards bodies from more than 170 countries that set global measures for the quality of individual products
