Chapter 9

Economies of Scope

Economies in which materials and processes employed in one product can be used to make other related products

Concurrent Engineering

A design approach in which all relevant functions cooperate jointly and continually in a maximum effort aimed at producing high-quality products that meet customers' needs

Mechanistic Organization

A form of organization that seeks to maximize internal efficiency

Strategic Alliance

A formal relationship created among independent organizations with the purpose of joint pursuit of mutual goals

Six Sigma Quality

A method of systematically analyzing work processes to identify and eliminate virtually all causes of defects, standardizing the processes to reach the lowest practicable level of any cause of customer dissatisfaction

Customer Relationship Management

A multifaceted process focusing on creating two-way exchanges with customers to foster intimate knowledge of their needs, wants, and buying patterns

Continuous Process

A process that is highly automated and has a continuous production flow

ISO 9001

A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of producers and consumers

Rightsizing

A successful effort to achieve an appropriate size at which the company performs most effectively

Just-In-Time

A system that calls for subassemblies and components to be manufactured in very small lots and delivered to the next stage of the production process just as they are needed

High-Involvement Organization

A type of organization in which top management ensures that there is consensus about the direction in which the business is heading

Total Quality Management

An integrative approach to management that supports the attainment of customer satisfaction through a wide variety of tools and techniques that result in high-quality goods and services

Lean Manufacturing

An operation that strives to achieve the highest possible productivity and total quality, cost-effectively, by eliminating unnecessary steps in the production process and continually striving for improvement

Learning Organization

An organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights

Organic Structure

An organizational form that emphasizes flexibility

Survivor's Syndrome

Loss of productivity and morale in employees who remain after a downsizing

Flexible Factories

Manufacturing plants that have short production runs, are organized around products, and use decentralized scheduling

Time-Based Competition

Strategies aimed at reducing the total time needed to deliver a good or service

Large Batch

Technologies that produce goods and services in high volume

Small Batch

Technologies that produce goods and services in low volume

Logistics

The movement of the right goods in the right amount to the right place at the right time

Downsizing

The planned elimination of positions or jobs

Mass Customization

The production of varied, individually customized products at the low cost of standardized, mass-produced products

Value Chain

The sequence of activities that flow from raw materials to the delivery of a good or service, with additional value created at each step

Technology

The systematic application of scientific knowledge to a new product, process, or service

Computer-Integrated Manufacturing

The use of computer-aided design and computer-aided manufacturing to sequence and optimize a number of production processes