Production, Operations, and Supply Chain Management

Reserve Stock System

a certain amount of stock is set aside in reserve so that it cannot be used

Materials Requirement Planning (MRP)

a computer-based program used for inventory control and production planning

Continuous Flow Production

a method that produces discrete units of products in large numbers one by one continuously and rapidly

Six Sigma

a method that seeks to virtually eliminate defects by implementing a quality focus in every aspect of the organization

Gantt Chart

are used to lay out each task in a project, the order in which these tasks must be completed, and how long each task should take

Enterprise Resource Planning (ERP)

are used to monitor a firm's inventory and process schedules but can integrate these functions with other aspects of the business, such as finance, marketing, and human resources.

Supply Chain

consists of all of the suppliers, business partners, and service providers, as well as sourced manufacturers, distributors, retailers, and transporters, that take part in producing a product and delivering it to the customer

Statistical Quality Control (SQC)

describes the set of statistical tools used to analyze each stage of production process to ensure that quality standards are being met

Make-or-buy decision

determining whether the company will make the entire product or whether the product will be assembled with some or all outsourced parts

Just-In-Time (JIT) Inventory Management

enables a firm to maintain the smallest amount of inventory possible, with inventory being ordered as it is actually needed

Flexible Manufacturing System (FMS)

enables manufacturers to produce large quantities of customized products

Proximity to Utilities

establish close to electricity, natural gas, water, and other utilities

Product Layout

groups different workstations together according to the products they work on

Process Layout

groups workstations together according to the activity being performed, regardless of which product each workstation is working on

Inventory Control

includes receiving, storing, handling, and tracking everything in a company's stock

Assembly Line

is a mass production process

Lean Production

is a set of principles concerned with reducing waste and improving the flow of processes

Total Quality Management (TQM)

is an integrated approach that focuses on quality from the beginning of the production process up through managerial involvement to detect and correct problems

Loading

is assigning a job to a specific machine or an entire work center

Sequencing

is assigning the order in which jobs are processed

Statistical Process Control (SPC)

is one of the tools used in SQC where random samples of products are checked at each phase of production to see if there are any variations that need to be corrected

Mass Production

is producing large quantities of goods at a low cost

Operations Management

is the administration and planning of business operations to produce and distribute goods and services as efficiently as possible.

Supply Chain Management

is the management of activities from all organizations involved in the production process

Capacity Planning

is the process of determining how much of a product can be produced to meet demand

Production

is the process of getting a good or a service to the customer; it is a series of related activities, with value being added as each activity or stage is completed

Mass Customization

is the production of goods or services tailored to meet customers' individual needs cost effectively

Purchasing

is the task of acquiring the materials and services needed in the production process

A Fixed-Position Layout

is used to manufacture large items, such as ships, airplanes, and modular homes.

Reverse Logistics

managing returned products and material so as to add value to them

Program Evaluation and Review Technique (PERT)

maps out the steps involved in a project, differentiating tasks that must be completed in a certain order from tasks that may be completed simultaneously

Proximity to Hazardous waste disposal

near a hazardous waste disposal

Intermittent Processes

production runs are shorter, so machinery can be changed to accommodate product changes

Radio Frequency Identification (RFID)

refers to electronic systems that allow computers to keep track of the status and quantity of tagged inventory as it moves through the supply chain

Scheduling

refers to the efficient organization of equipment, facilities, labor, and materials

Facility Layout

refers to the physical arrangement of resources and people in the production process and how they interact

Production Management

refers to the planning, implementation, and control measures used in the process to convert resources into finished products

Quality Control

refers to the techniques, activities, and processes used to guarantee that a good or service meets a specified level of quality

Computer-aided Design (CAD)

refers to using computer software to create two-dimensional or three-dimensional virtual models of parts or products.

Proximity to Market

service businesses, such as restaurants, supermarkets, and retail operations, must choose their locations based on how convenient they are to their target customers

Cellular Layout

small teams of workers are grouped together in workstations and handle all aspects of the assembly of a product

Computer-Integrated Manufacturing (CIM)

systems combine design and manufacturing functions with other automated functions, such as order taking, shipment, and billing, for the complete automation of a manufacturing plant

Simultaneous Engineering

the integration of CAD and CAM systems in aspects of a production process

Stock Book Solution

the stock in hand is accounted for long with the stock that has been ordered and the stock that has been sold

Proximity to Raw Materials

to reduce spoilage costs, manufacturing businesses try to locate near sources of necessary raw materials as well near transportation systems

Computer-aid Manufacturing (CAM)

uses the design data to control the manufacturing machinery

Backward Scheduling

you are giving a shipping or due date, and you determine the start date and the most efficient production schedule based on when everything must be finished

Forward Scheduling

you start with the date of the that materials are available, create the most efficient production schedule, and then determine a shipping date based on that schedule