ba 101 midterm 2 Flashcards
production management
all the activities managers engage in to help firms create goods
operations management
a specialized area in management that converts or transforms resources into goods and services
operations management includes
Inventory management
Quality control
Production scheduling
Follow-up services
the production process Inputs
Land
Labor
Materials
Capital
Entrepreneurship
Knowledge
the production process production control
Planning
Routing
Scheduling
Dispatching
Follow-up
the production process outputs
Goods
Services
Ideas
assembly process
the part of production that puts together components
process manufacturing
the part of production that physically or chemically changes materials
continuous processes
long production runs turn out finished goods over time
Intermittent Processes
production runs are short & the producer adjusts machines frequently to make different products
Computer-Aided Design (CAD)
the use of computers in the deisgn of products
Computer-Aided Manufacturing (CAM)
the use of computers in the manufacturing of products
Computer-Integrated Manufacturing (CIM)
Uniting of CAD with CAM
nanomanufacturing
can manipulate material on molecular level
modular layout
teams produce more complex units of final product
assembly line layout
workers do only a few tasks at a time
fixed-position layout
allows workers to congregate around product
just-in-time (JiT) inventory control
production process in which a minimum of inventory is kept and parts, supplies, and other needs are delivered just in time to go on the assembly line
six sigma quality
quality measure that allows only 3.4 defects per million opportunities
lean companies division
1/2 human effort
1/3 engineering effort
1/2 floor space
carry 90% less inventory
have half the defects in products
Program Evaluation and Review Technique (PERT)
method for analyzing the tasks involved in completing a given project and estimating the time needed
PERT steps
1 analyzing & sequencing tasks
2 estimating time needed to complete each task
3 draw PERT network of first 2 steps
4 identify critical path (sequence of tasks longest to complete)
GANTT Chart
bar graph of current projects and completion status
accounting
recording
classifying
summarizing
interpreting
- of financial events and transactions in an organization to provide interested parties needed financial info
who makes use of a firm’s accounting information
interested parties
employees
owners
creditors
unions
investors
gov
account system inputs
accounting docs
sales
purchasing
shipping
payroll records
bank
travel
entertainment
account system processing
1 recording - entries made into journals
2 classifying - effects of journal entries transferred or posted into ledgers
3 all accounts summarized
account system outputs
financial statements
balance sheet
income statement
statement of cash flows
annual reports
accounting progression
1 analyze source docs (sales slips, travel records, etc)
2 record transactions in journals
3 transfer (post) journal entries to ledger
4 take a trial balance
5 prepare financial statements (balance sheet, income statement, statement of cash flows)
6 analyze financial statements
managerial accounting
assists managers in decision making by providing info and analysis
managerial accounting involved with
costs of production and marketing
prep and control of budgets
minimizing tax liabilites
financial accounting
financial info & analysis primarily for people outside the organization
Liabilities + owner equity =
assets
revenue - expense =
profit (loss)
liabilities
the debt claims against the. stuff
single owner with a loan =
a liability
revenue transactions
business & customers
expense transactions
business & suppliers
net income
profit (loss), difference between revenue & expense
variable costs
more you make greater the cost
- labor and material used
- cost of keeping inventory
fixed costs (operating expense)
cost of being in business that month
- selling & administrative expenses
sales - variable costs =
contribution margin
number of units sold x price =
revenue
contribution margin
amount of money (value) left after you pay for you products you sell
measure of the efficiency of your production process
net margin (EBIT)
earnings before interest & taxes
contribution margin - total period =
net margin (ebit)
net income - if firm gives it to owners
dividend to stockholders
income to partners / sole proprietor
net income - if firm reinvests the income
retained earnings
