Chapter 15
fixed-position layout
A physical configuration of facilities arranged around a single work area; used for the manufacture of large and complex products such as airplanes
productivity
An economic measure of efficiency that summarizes what is produced relative to resources used to produce it
just-in-time (JIT) method
An inventory system that has necessary materials arriving as soon as they are needed (just in time) so that the production process is not interrupted
service organization
An organization that transforms resources into an intangible output and creates time or place utility for its customers
robot
Any artificial device that is able to perform functions ordinarily thought to be appropriate for human beings
purchasing management
Buying materials and resources needed to produce products and services
technology
The set of processes and systems used by organizations to convert resources into products or services
manufacturing
A form of business that combines and transforms resource inputs into tangible outcomes
process layout
A physical configuration of facilities arranged around the process; used in facilities that create or process a variety of products
product layout
A physical configuration of facilities arranged around the product; used when large quantities of a single product are needed
cellular layout
A physical configuration of facilities used when families of products can follow similar flow paths
ISO 9000:2000
A set of quality standards created by the International Organization for Standardization and revised in 2000
SQC
A set of specific statistical techniques that can be used to monitor quality; includes acceptance sampling and inprocess sampling
ISO 14000
A set of standards for environmental performance
total quality management (TQM) (quality assurance)
A strategic commitment by top management to change its whole approach to business in order to make quality a guiding factor in everything it does
computer-assisted manufacturing
A technology that relies on computers to design or manufacture products
product-service mix
How many and what kinds of products or services (or both) to offer
inventory control
Managing the organization's raw materials, work in process, finished goods, and products in transit
Malcolm Baldrige Award
Named after a former secretary of commerce, this prestigious award is given annually to firms that achieve major quality improvements
outsourcing
Subcontracting services and operations to other firms that can perform them cheaper or better
capacity
The amount of products, services, or both that can be produced by an organization
value-added analysis
The comprehensive evaluation of all work activities, materials flows, and paperwork to determine the value that they add for customers
layout
The physical configuration of facilities, the arrangement of equipment within facilities, or both
facilities
The physical locations where products or services are created, stored, and distributed
location
The physical positioning or geographic site of facilities
automation
The process of designing work so that it can be completely or almost completely performed by machines
benchmarking
The process of learning how other firms do things in an exceptionally high-quality manner
supply chain management
The process of managing operations control, resource acquisition and purchasing, and inventory so as to improve overall efficiency and effectiveness
cycle time
The time needed by the organization to develop, make, and distribute products or services
operations management
The total set of managerial activities used by an organization to transform resource inputs into products, services, orboth
quality
The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs
