Intro. to Business Chapters 7, 8, & 9

Operations Management Planning Helps Solve Problems like

-facility location -materials requirement planning -inventory control -facility layout -purchasing -quality control

Developments Making U.S. Companies More Competitive

1) CAD 2) flexible manufacturing 3) lean manufacturing 4) mass customization 5) robotics 6) 3D printing

Steps in PERT

1) analyzing and sequencing tasks 2) estimating the time needed to complete each task 3) drawing a PERT network illustrating the first two steps 4) identifying the critical path

Grave's Basic Product Requirements

1) build and deliver products in response to the demands of the customer 2) to provide an acceptable quality level 3) to provide everything of the lowest possible cost

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.

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.

S.W.O.T. Analysis

a planning tool used to analyze an organizations strengths, weaknesses, opportunities, and threats

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.

Six Sigma

a quality measure that allows only 3.4 defects per million opportunities

Operations Management

a specialized area in management that converts or transforms resources (including human resources) into goods and services.

Organization CHart

a visual chart that shows relationships among people and divides the organizations work, it shows who reports to to whom

International Organization for Standardization (ISO)

a worldwide federations of national standards bodies

Robotics

allows manufacturing to continue 24/7 with great precision

Fixed-Position Layout

allows workers to congregate around the product to be completed

Bueraurcracy

an organization with many layers of managers who set rules and regulations and oversee all decisions

Tall Structure

an organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management

Flat Structure

an organizational structure that has few layers of management and a broad span of control

Organizing

assigning tasks, establish procedure, prepare a structure, developing employees, place employees *provides resources*

Gantt Chart

bar graph showing production managers what projects are being worked on and what stage they are in at any given time

Goals

broad, long-term accomplishments an organization wishes to attain

Economies of Scale

companies can reduce their production cost by purchasing raw materials in bulk

Quality

consistently producing what the customer wants while reducing errors before and after delivery to the customer

Production

creation of finished goods and services using the factors of production

Flexible Manufacturing

designing machines to do multiple tasks so that they can produce a variety of products

Tactical Planning

detailed, short-term statements

Core Competencies

functions that the organization can do as well as or better than any other organization in the world

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

Leading

guide and motivate employees, give assignments, explain routines, classifying policies, provide feedback *guide, coach, motive*

Staffing

hiring, motivating, and retaining the best people to accomplish the company's objective

Factors of Production

land, labor, capital, entrepreneurship, and knowledge

CHain of Command

line of authority that moves from the top of the hierarchy to the lowest level

Continuous Process

long production runs turn out finished goods over time

Strategic Planning

major goals, policies and strategies

Autocratic Leadership

make managerial decisions without consulting others

Participative/Democratic Leadership

manager and employees work together to make decisions

Free-Rein Leadership

managers set strategic direction and objectives. employees are relatively free to do whatever it takes to accomplish those objectives

Controlling

measure results, monitor performance, reward outstanding performance, taking corrective action

Span of Control

optimum number of subordinates a manager supervises or should supervise

4 Aspects of Management

planning, leading, organizing, controlling

Management Functions

planning, organizing, leading, controlling

Contingency Planning

preparing alternative courses of action, can be used if primary plan does not work

Statistical Process Control (SPC)

process of testing 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.

Statistical Qualify Control (SQC)

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

3D Printing

products are created one layer at a time

Planning

setting goals, developing strategies, determine needed resources, setting standards *understand trends*

Division of Labor

setting up different groups

Process Layout

similar equipment and functions are grouped together

Matrix Organization

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.

Objectives

specific, short-term statements detailing how to achieve the organization's goals

S.W.O.T.

strengths, weaknesses, opportunities, and threats

Hierarchy

system where one person is at the top of an organization and there is a ranked or sequential ordering from the top down

Mass Customizations

tailoring products to meet the needs of individual customers

Modular Layout

teams of workers combine to produce more complex units of the final product

Process Manufacturing

that part of the production process that physically or chemically changes materials

Assembly Process

that part of the production process that puts together components

ISO 9001

the common name given to quality management and assurance standards

Departmentalization

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

Facility Layout

the physical arrangement of resources (including people) in the production process

Facility Location

the process of selecting a geographic location for a company's operations

Lean Manufacturing

the production of goods using less of everything compared to mass production

Intermittent Process

the production tun is short and the machines are changed frequently to make different products

Production Management

the term used to describe all the activities managers do to help their firms create goods

CAD

the use of computers in the design of products

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

CUA

uniting of computer-aided design with computer-aided manufacturing

Networking

using communications technology and other means to link organizations and allow them to work together on common objectives

Vision

what an organization aspires to be (long-term)

Decentralized Authority

when decisions-making authority is delegated to lower-level managers more familiar with local condition than headquarters management could be

Centralized Authority

when decisions-making authority is maintained at the top level of management at the company's headquarters

Mission Statement

why an organization exists

Operational Planning

work standards to implement tactical objectives

Assembly Line Layout

workers do only a few tasks at a time