MGT 111: Ch. 9
gantt chart
bar graph showing production managers what projects are being worked on & what stage they are in at any given time
ISO 14001
collection of the best practices for managing an organization's impact on the environment
ISO 9001
common name given to quality management & assurance standards
materials requirement planning (MRP)
computer-based operations management system that uses sales forecasts to make sure that needed parts & materials are available at the right time & place
quality
consistently producing what the customer wants while reducing errors before & after delivery to the customer
production
creation of finished goods & services using the factors of production: land, labor, capital, entrepreneurship, & knowledge
flexible manufacturing
designing machines to do multiple tasks so that they can produce a variety of products; machines & robots build, test, & package parts
purchasing
function in a firm that searches for quality material resources, finds the best suppliers & negotiates the best price for goods & services
critical path
in a PERT network, the sequence of tasks that takes the longest time to complete
program evaluation & review technique (PERT)
method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, & identifying the minimum time needed to complete the total project
enterprise resource planning (ERP)
newer version of materials requirement planning (MRP) that combines the computerized functions of all the divisions & subsidiaries of the firm—such as finance, human resources, & order fulfillment—into a single integrated software program that uses a single database
process manufacturing
part of the production process that physically or chemically changes materials
assembly process
part of the production process that puts together components
facility layout
physical arrangement of resources (including people) in the production process
facility location
process of selecting a geographic location for a company's operations
statistical process control (SPC)
process of taking statistical samples of product components at each stage of the production process & plotting those results on a graph; any variances from quality standards are recognized & can be corrected if beyond the set standards
statistical quality control (SQC)
process some managers use to continually monitor all phases of the production process to ensure that quality is being built into the product from the beginning
lean manufacturing
production of goods using less of everything compared to mass production
just in time (JIT) inventory control
production process in which a minimum of inventory is kept on the premises and parts, supplies, & other needs are delivered just in time to go on the assembly line
continuous process
production process in which long production runs turn out finished goods over time
intermittent process
production process in which the production run is short & the machines are changed frequently to make different products
six sigma quality
quality measure that allows only 3.4 defects per million opportunities
operations management
specialized area in management that converts or transforms resources (including human resources) into goods & services
mass customization
tailoring products to meet the needs of a large number of individual customers
production management
term used to describe all the activities managers do to help their firms create goods
computer-integrated manufacturing (CIM)
uniting of computer-aided design with computer-aided manufacturing
computer-aided design (CAD)
use of computers in the design of products
form utility
value producers add to materials in the creation of finished goods & services
telecommuting
working from home via computer and modem