Chapter 10 Achieving World-Class Operations Management Flashcards
Key terms used in Chapter 10 of Openstax Introduction to business
Questions
Answers
_____________ is the creation of products and services by turning inputs, such as natural resources, raw materials, human resources, and capital, into outputs, which are products and services.
production
Management of the production process is called ________________.
operations management
The aspect of operations management in which the firm considers the competitive environment and its own strategic goals in an effort to find the best production methods is called __________.
production planning
The ______________ is the way a good or service is created.
production process
The manufacture of many identical goods at once is called ________.
mass production
A manufacturing process in which goods are mass-produced up to a point and then custom-tailored to the needs or desires of individual customers is called ____________.
mass customization
The production of goods or services one at a time according to the specific needs or wants of individual customers is referred to as ______________.
customization
A(n) ________ is a manufacturing firm that produces goods in response to customer orders.
job shop
A production process in which the basic input is broken down into one or more outputs (products) is ____________________.
process manufacturing
The production process in which the basic inputs are either combined to create the output or transformed into the output is called the ________ process.
assembly process
The production process that uses long production runs lasting days, weeks, or months without equipment shutdowns is called _____________. It is generally used for high-volume, low-variety products with standardized parts.
continuous process
The _____________ process uses short production runs to make batches of different products This process is generally used for low-volume, high-variety products.
intermittent process
A facility arrangement in which work flows according to the production process is a(n) __________ layout. All workers performing similar tasks are grouped together, and products pass from one workstation to another.
process layout
A facility arrangement in which workstations or departments are arranged in a line with products moving along the line is a(n) _________________ layout.
product (or assembly-line) layout
A facility arrangement in which the product stays in one place and workers and machinery move to it as needed is a(n) ________________ layout.
fixed-position layout
The production technique that uses small, self-contained production units, each performing all or most of the tasks necessary to complete a manufacturing order is called ___________.
cellular manufacturing
A(n) ______________ is a list of the items and the number of each required to make a given product.
bill of material
The process of buying production inputs from various sources is called _____________, also called procurement.
purchasing
A(n) _______________ is the determination by a firm of whether to make its own production materials or to buy them from outside sources.
make-or-buy decision
The purchase of items from an outside source rather than making them internally is known as _________________.
outsourcing
__________ is the supply of goods that a firm holds for use in production or for sale to customers.
inventory
________________ determines how much of each type of inventory a firm will keep on hand and the ordering, receiving, storing, and tracking of inventory.
inventory management
A continuously updated list of inventory levels, orders, sales, and receipts is ______________.
perpetual inventory
A computerized system of controlling the flow of resources and inventory used by many companies is __________________. It uses a master schedule to ensure that the materials, labor, and equipment needed for production are at the right places in the right amounts at the right times.
materials requirement planning (MRP)
A complex computerized system that integrates data from many departments, called ________________, allows managers to more accurately forecast and assess the impact of production plans on profitability.
manufacturing resource planning II (MRPII)
Some large companies use _______________, which is a computerized resource-planning system, to incorporates information about the firm’s suppliers and customers with its internally generated data.
enterprise resource planning (ERP)
The entire sequence of securing inputs, producing goods, and delivering goods to customers is the ________________.
supply chain
__________________ is the process of smoothing transitions along the supply chain so that the firm can satisfy its customers with quality products and services. It focuses on developing tight bonds with suppliers.
supply-chain management
The process of purchasing supplies and materials online using the internet is called ________.
e-procurement
The ___________________ is the electronic exchange of information between two trading partners.
electronic data interchange (EDI)
___________________ refers to a decentralized “public ledger” of all transactions that have ever been executed. It is constantly expanding, as “completed” blocks are added to the ledger with each new transaction.
blockchain technology
________ is the aspect of production control that involves setting out the work flow—the sequence of machines and operations through which the product or service progresses from start to finish.
routing
______________ is a routing technique that uses simple icons to visually represent the flow of materials and information from suppliers through the factory to customers.
value-stream mapping
________ is the aspect of production control that involves specifying and controlling the time required for each step in the production process.
scheduling
Bar graphs plotted on a time line that show the relationship between scheduled and actual production are called _____________.
Gantt charts
The _________________ is a scheduling tool that enables a manager to determine the critical path of activities for a project, the activities that will cause the entire project to fall behind schedule if they are not completed on time.
critical path method (CPM)
In a critical path method network, the longest path through the linked activities is called the _________________. These are the activities that will cause the entire project to fall behind schedule if they are not completed on time.
critical path
The _______________ is a scheduling tool that is similar to the CPM method but assigns three time estimates for each activity (optimistic, most probable, and pessimistic). It allows managers to anticipate delays and potential problems and schedule accordingly.
program evaluation and review technique (PERT)
Goods and services that meet customer expectations by providing reliable performance is known as ________________.
quality
The process of creating quality standards, producing goods that meet them, and measuring finished goods and services against them is called _________________.
quality control
___________________ is the use of quality principles in all aspects of a company’s production and operations.
Total Quality Management (TQM)
________________ is a commitment to constantly seek better ways of doing things in order to achieve greater efficiency and improve quality.
continuous improvement
A quality-control process that relies on defining what needs to be done to ensure quality, measuring and analyzing production results statistically, and finding ways to improve and control quality is __________________.
Six Sigma
Established by Congress in 1987 and named for a former secretary of commerce, the _______________ given to recognize U.S. companies that offer goods and services of world-class quality.
Malcolm Baldrige National Quality Award
The __________ is a set of five technical standards of quality management created by the International Organization for Standardization to provide a uniform way of determining whether manufacturing plants and service organizations conform to sound quality procedures.
ISO 9000
The ___________ is a set of technical standards designed by the International Organization for Standardization to promote clean production processes to protect the environment.
ISO 14000
_______________ streamlines production by eliminating steps in the production process that do not add benefits that customers want.
lean manufacturing
A system in which materials arrive exactly when they are needed for production, rather than being stored on-site is called _____________-.
just-in-time (JIT)
_____________ uses computers to design and test new products and modify existing ones.
computer-aided design (CAD)
_____________ uses computers to develop and control the production process.
computer-aided manufacturing (CAM)
Linked computer systems that combine the advantages of computer-aided design and computer-aided manufacturing are called ______________ systems. The system helps design the product, control the flow of resources needed to produce the product, and operate the production process.
CAD/CAM systems
______________ is the technology involved in designing, constructing, and operating computer-controlled machines that can perform tasks independently.
robotics
A(n) _______________ combines automated workstations with computer-controlled transportation devices, automatic guided vehicles (AGV), that move materials between workstations and into and out of the system.
flexible manufacturing system (FMS)
The combination of computerized manufacturing processes (such as robots and flexible manufacturing systems) with other computerized systems that control design, inventory, production, and purchasing is called _____________________.
computer-integrated manufacturing (CIM)
A unified system that has the power to integrate and optimize a company’s sprawling functions by automating much of what it does is called ____________.
business process management (BPM)
