Business Exam 2 Flashcards
production
The creation of goods using land, labor, capital, entrepreneurship and knowledge (the factors of production).
Production Management
All the activities managers do to help firms create goods
Operations Management
A specialized area in management that converts or transforms resources into goods and services.
Form Utility
The value producers add into a finished good or service.
Ex.Putting services together to create a vacation package
Andrew S. Grove’s BASIC PRODUCTION REQUIREMENTS
- To build and deliver products in response to the demands of the customer at the scheduled delivery time.
- To provide an acceptable quality level.
- To provide everything at the lowest possible cost.
Process Manufacturing
The part of production that physically or chemically changes materials.
ex. boiling the egg
Assembly Process
The part of the production process that puts together components.
ex. eggs, coffee, toast = breakfast
Continuous Process
Long production runs turn out finished goods over time.
ex.long conveyor belt with eggs that continuously are dropped into water – continuous stream of 3 minute eggs
Intermittent Process
Production runs are short and the producer adjusts machines frequently to make different products
ex.a toaster in a diner or oven in a bakery
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
Computer-Integrated Manufacturing (CIM)
The uniting of computer-aided design with computer-aided manufacturing.
SIG. CIM is expensive but it cuts as much as 80% of the time needed to program machines to make parts
Flexible Manufacturing
Designing machines to do multiple tasks so they can produce a variety of products.
Lean Manufacturing
Using less of everything than in mass production.
Compared to others, lean companies:
- Take half the human effort.
- Have half the defects in finished products.
- Require one-third the engineering effort.
- Use half the floor space.
- Carry 90% less inventory.
Mass Customization
Tailoring products to meet the needs of a large number of individual customers
ex.Chocomize
Operations management
a specialized area in management that converts or transforms resources into goods and services through Facility location, Facility layout, Materials requirement planning, Purchasing, Inventory control, Quality control
Facility Location
The process of selecting a geographic location for a company’s operations
future: Telecommuting – Working from home via computer.
Facility Layout
The physical arrangement of resources, including people, to most efficiently produce goods and provide services.
Facility Layout Options
- Assembly Line Layout – Workers do only a few tasks at a time.
- Modular Layout – Teams of workers produce more complex units of the final product.
- Fixed-Position Layout – Allows workers to congregate around the product (like bridge or airplane)
- Process Layout – Similar equipment and functions are grouped together and the order in which the product visits the equipment depends on the design of the product.
Materials Requirement Planning (MRP)
A computer-based operations management system that uses sales forecasts to make sure parts and materials are available when needed.
Enterprise Resource Planning (ERP)
A newer version of MRP, combines computerized functions into a single integrated software program using a single database.
Purchasing
The function that searches for high-quality material resources, finds the best suppliers and negotiates the best price for goods and services.
Just-in-Time (JIT) Inventory Control
The 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.
Quality
Consistently producing what the customer wants while reducing errors before and after delivery.
