Exploring Business Chapter 8&9
Hierarchy
Organizational structure that created a chain of command with one person at the top and others in ranked order at the bottom
Flat Organization
Organizational structure that has only a few levels of managers
Facility Layout
Physical arrangement of resources in the production process
Time-to-market
Refers to moving products quickly and I expensively to customers
Economic of scale
Refers to the fact that companies can reduce their production costs by purchasing raw materials
Fixed Position layout
Scheduling work operations at site of the end product as in home building
Max Weber's principles of organization resembled Fayol's. In addition, Weber emphasized which of the following principles?
-Consistent procedure, regulations & policies -Job Descriptions -Staffing & promotion based on qualifications -Written rules, decision guide lines and detailed records
Examples of employees considered to be staff personnel would include:
-Information technology workers -Legal advisers
Line managers
-issue orders -enforce discipline -adjust to changing conditions
ISO 14000
A comprehensive set of environmental standards that encourages companies to conduct business in a cleaner, safer and less wasteful way
Mass Production focuses on producing:
A limited variety of products
Continuous Process
A production process in which long production runs turn out finished goods over time
Six Sigma Quality
A quality control standard that allows for 3.4 defects per one million opportunities
Intermittent Process
A short production run with frequent adjustments to machines
Facility Location
A significant question because, once the decision has been made and implemented, the firm must live with it due to high costs involved
Single-Integrated Software System
A unique element of ERP is that it combines computerized functions of all divisions into one database
Form utility
An example would be when a butcher produces a specific cut of beer
Centralized organization
An organization structure in which decision-making authority is maintained at the top level of management
Tall Organization Structure
An organization structure in which the pyramidal organization chart would be quite tall bc of various levels of management
Decentralized Organization
An organizational structure in which decision-making authority is delegated as far down the chain of command as possible
Combines CAD AND CAM
CIM
Cellular or Modular Layout
Can accommodate changes in design or demand
Which of Fayol's principles states that all workers should be able to reach others in the firm quickly and easily?
Clear Communication Channels
Benchmarking
Comparing an organization's practices, processes & products against the world's best
Production
Factors such as land, labor and capital to create goods and services
Critical Plan
Final step used in PERT
Companies sometimes spend millions to move location:
For proximity to customers
Cross-functional self managed teams
Groups of employees from different departments who work together on a long-term basis
Line organization
Has directly two-way lines of responsibility, authority, & communication
Mass customization focuses on the needs of what types of customers?
Individual
ISO 9000
International standard focusing on quality management
Lean manufacturing uses:
Less resources Less time
Basic Premise of Just-In-Time Inventory
Minimum inventory is kept on hand
Continuous Process
Requires long production runs that turn out finished goods over time
Operations Manager
Responsible for producing products and delivering them on time, on budget and to specifications
Control production process
Routing Planning Scheduling
Process Layout
Serving different customers with different needs
Statistical Quality Control
Some managers choose to monitor all phases of the production process
Information Technology
Texting, teleconferencing, cell phones and email
Span of control
The optimal number of subordinates a manager supervises or should supervise
Assembly Process
The type of product that puts components together
Product (assembly) Layout
Used to produce large quantities of a few products
Process Layout
Used when similar equipment and functions are grouped together and the order in which the product visits a function depends on the design of the item
CAD Computer Aided Design
Using computers to design products is referred to this
Materials Requirement Planning
Using sales forecasts to make sure needed parts and materials are available at the right time and place
What does the production process add to materials?
Value/form utility
Organization culture (Corporate)
Widely shared values within an organization that provide unity and cooperation to achieve common goals
To understand the formal reporting relationships among people in a company one may conduit the company's:
Organizational Chart
Which of the following exemplify line personnel in the line-and-staff organization?
Production workers and packaging personnel
Division of Labor
When a manager determines what work needs to be done, then then divide the up the task among workers
Inverted Organization
When an organizational chat is flipped upside down and top management is at the bottom
Fayol's equity principle states that a manager should treat employees and peers...
With respect and justice
Which of the following departments could be considered by a company approaching departmentalizations by functions?
-Marketing -Accounting -Production
Which of the following are reasons to name department managers for each department created during departmentalizations?
-To maintain control of the whole process -To assure the department's accountability
What are some goals on an organizational chart?
-To show who is accountable for completion of specific work -To show relationships among people -To show whom reports to whom
Formal Organization details lines of:
-responsibility -authority -position
The key to success is remaining...
...flexible in changing times
According to Fayol's order principle...
...materials and people should be placed and maintained in proper location
Quality Control
Conducting inspections at the end of production line
Company X focuses on one attribute of its business that it performs as well or better than its competitors. This is called:
Core Competency
Enterprise Resource Planning
Departments can see the status of an order at any time , shorter time pages between orders and payments and less staff required to process orders
By providing needed goods and services to developing markets a company's:
Will experience growth
Bureaucracy
In the past, many organizations designed rules & regulations to give managers control over employees
Fayol's principle called Esprit de Corps
States that a specific spirit of pride and loyalty should be created among people in the firm
Fayol's Principle called Degree of Centralization
States that the amount of decision-making power vested in top management should vary by circumstances
Informal Organziation
System that develops spontaneously as employees meet and form cliques, relationships and lines of authority
Mass communication
Tailoring products to meet the needs of individual customers
Virtual Organization
Temporarily networking organization made up of replaceable firms that join and leave
CAM Computer Aided Manufacturing
The system of production that uses computers to control the manufacturing process
Matrix Organization
When different members of an aerospace firm come together to work temporarily on a specific project
Flexible Manufacturing
When machines are designed to do multiple tasks in order to produce a variety of products
Telecommuting
Working from home using information technology as a computer and modem
Digital Natives
Young people who grew up with the Internet
