Chapter 1 Key Terms Flashcards
agility
the ability of an organization to respond quickly to demands or opportunities
craft production
system in which highly skilled workers use simple, flexible tools to produce small quantities of customized goods
division of labor
the breaking up of a production process into small tasks, so that each worker performs a small portion of the overall job
e-business
use of the Internet to transact business
ethical framework
a sequence of steps intended to guide thinking and subsequent decision or action
e-commerce
consumer-to-business transactions
ethics
a standard of behavior that guides how one should act in various situations
goods
physical items produced by business organizations
interchangeable parts
parts of a product made to such precision that they do not have to be custom fitted
lead time
the time between ordering a good or service and receiving it
lean system
system that uses minimal amounts of resources to produce a high volume of high-quality goods with some variety
mass production
system in which low-skilled workers use specialized machinery to produce high volumes of standardized goods
model
an abstraction of reality; a simplified representation of something
operations management
the management of systems or processes that create goods and/or provide services
outsourcing
buying goods or services instead of producing or providing them in-house
Pareto phenomenon
a few factors account for a high percentage of the occurrence of some event(s)
process
one or more actions that transform inputs into outputs
services
activities that provide some combination of time, location, form, and psychological value
six sigma
a process for reducing costs, improving quality, and increasing customer satisfaction
supply chain
a sequence of activities and organizations involved in producing delivering a good or service
sustainability
using resources in ways that do not harm ecological systems that support human existence
system
a set of interrelated parts that must work together
technology
the application of scientific discoveries to the development and improvement of goods and services
value-added
the difference between the cost of inputs and the value or price of outputs
