intro to business Ch. 7-9
ISO 14001
A collection of the best practices for managing an organization's impact on the environment.
Materials Requirement Planning (MRP)
A computer-based operations management system that uses sales forecasts to make sure that needed parts and materials are available at the right time and place.
planning
A management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives.
staffing
A management function that includes hiring, motivating, and retaining the best people available to accomplish the company's objectives
Program Evaluation and 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 total project.
Enterprise Resource Planning (ERP)
A 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 fulfillment--into a single integrated software program that uses a single database.
just-in-time (JIT) inventory system
A 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.
operations management
A specialized area in management that converts or transforms resources (including human resources) into goods and services.
organization chart
A visual device that shows relationships among people and divides the organization's work; it shows who reports to whom.
matrix organization
An organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line-and-staff structure.
line organization
An organization that has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor.
bureaucracy
An organization with many layers of managers who set rules and regulations and oversee all decisions.
centralized authority
An organizational structure in which decision-making authority is maintained at the top level of management at the company's headquarters.
flat organizational structure
An organizational structure that has few layers of management and a broad span of control.
decision making
Choosing among two or more alternatives.
benchmarking
Comparing an organization's practices, processes, and products against the world's best.
PMI
Listing all the pluses for a solution in one column, all the minuses in another, and the implications in a third column.
objectives
Specific, short-term statements detailing how to achieve the organization's goals.
goals
The broad, long-term accomplishments an organization wishes to attain.
span of control
The optimum number of subordinates a manager supervises or should supervise.
networking
The process of establishing and maintaining contacts with key managers in and outside the organization and using those contacts to weave strong relationships that serve as informal development systems.
problem solving
The process of solving the everyday problems that occur. less formal than decision making and usually calls for quicker action.
Statistical Process Control (SPC)
The process of taking 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.
economies of scale
The situation in which companies can reduce their production costs if they can purchase raw materials in bulk; the average cost of goods goes down as production levels increase.
computer-integrated manufacturing (CIM)
The uniting of computer-aided design with computer-aided manufacturing.
organizing
a management function that includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organization's goals and objectives
controlling
a management function that involves establishing clear standards to determine whether or not an organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not
SWOT analysis
a planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats
continuous process
a production process in which long production runs turn out finished goods over time
intermittent process
a production process in which the production run is short and the machines are changed frequently to make different products
Six Sigma Quality
a quality measure that allows only 3.4 defects per million opportunities
hierarchy
a system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person
virtual corporation
a temporary networked organization made up of replaceable firms that join and leave as needed
vision
an encompassing explanation of why the organization exists and where it's trying to head
inverted organization
an organization that has contact people at the top and the chief executive officer at the bottom of the organization chart
decentralized authority
an organizational structure in which decision-making authority is delegated to lower-level managers more familiar with local conditions than headquarters management could be
tall organizational structure
an organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management
mission statement
an outline of the fundamental purposes of an organization
Gantt chart
bar graph showing production managers what projects are being worked on and what stage they are in at any given time
brainstorming
coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas
quality
consistently producing what the customer wants while reducing errors before and after delivery to the customer
leading
creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve the organization's goals and objectives
external customers
dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use
flexible manufacturing
designing machines to do multiple tasks so that they can produce a variety of products
staff personnel
employees who advise and assist line personnel in meeting their goals
line personnel
employees who are part of the chain of command that is responsible for achieving organizational goals
knowledge management
finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm
empowerment
giving frontline workers the responsibility, authority, freedom, training, and equipment they need to respond quickly to customer requests
enabling
giving workers the education and tools they need to make decisions
cross-functional self-managed teams
groups of employees from different departments who work together on a long-term basis
top management
highest level of management, consisting of the president and other key company executives who develop strategic plans
critical path
in a PERT network, the sequence of tasks that takes the longest time to complete
internal customers
individuals and units within the firm that receive services from other individuals or units
participative (democratic) leadership
leadership style that consists of managers and employees working together to make decisions
autocratic leadership
leadership style that involves making managerial decisions without consulting others
free-rein leadership
leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives
supervisory management
managers who are directly responsible for supervising workers and evaluating their daily performance
restructuring
redesigning an organization so that it can more effectively and efficiently serve its customers
human relations skills
skills that involve communication and motivation; they enable managers to work through and with people
technical skills
skills that involve the ability to perform tasks in a specific discipline or department
conceptual skills
skills that involve the ability to picture the organization as a whole and the relationship among its various parts
mass customization
tailoring products to meet the needs of a large number of individual customers
process manufacturing
that part of the production process that physically or chemically changes materials
ISO 9001
the common name given to quality management and assurance standards
production
the creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge
departmentalism
the dividing of organizational functions into separate units
purchasing
the function in a firm that searches for high-quality material resources, finds the best suppliers, and negotiates the best price for goods and services
middle management
the level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling
chain of command
the line of authority that moves from the top of a hierarchy to the lowest level
assembly process
the part of the production process that puts together components
facility layout
the physical arrangement of resources (including people) in the production process
real time
the present moment or the actual time in which something takes place
transparency
the presentation of a company's facts and figures in a way that is clear and apparent to all stakeholders
strategic planning
the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals
tactical planning
the process of developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done
contingency planning
the process of preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives
facility location
the process of selecting a geographic location for a company's operations
operational planning
the process of setting work standards and schedules necessary to implement the company's tactical objectives
Statistical Quality Control (SQC)
the process some managers use to continually monitor all phases of the production process to assure that quality is being built into the product from the beginning
management
the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources
lean manufacturing
the production of goods using less of everything compared to mass production
formal organization
the structure that details lines of responsibility, authority, and position; that is, the structure shown on organization charts
informal organization
the system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organization; that is, the human side of the organization that does not appear on any organization chart
production management
the term used to describe all the activities managers do to help their firms create goods
computer-aided design (CAD)
the use of computers in the design of products
computer-aided manufacturing (CAM)
the use of computers in the manufacturing of products
form utility
the value producers add to materials in the creation of finished goods and services
core competencies
those functions that the organization can do as well as or better than any other organization in the world
organizational (or corporate) culture
widely shared values within an organization that provide unity and cooperation to achieve common goals
digital natives
young people who have grown up using the internet and social networking
