Chapter 10 Definitions Flashcards
Operations management
All activities managers engage in to produce goods and services.
Mass production
A manufacturing process that lowers the cost required to produce a large number of identical or similar products over a long period of time.
Analytical process
A process in operations management in which raw materials are broken into different component parts.
Synthetic process
A process in operations management in which raw materials or components are combined to create a finished product.
Utility
The ability of a good or service to satisfy a human need.
Form utility
Utility created by people converting raw materials, finances and information into finished products.
Service economy
An economy in which more effort is devoted to the production of services than the production of goods.
Research and development (R&D)
A set of activities intended to identify new ideas that have the potential or result in new goods and services.
Design planning
The development of a plan for converting an idea into an actual product or service.
Product line
A group of similar products that differ only in relatively minor characteristics
Product design
The process of creating a set of specifications from which a product can be produced.
Capacity
The amount of products or services that an organization can produce in a given time.
Labor-intensive technology
A process in which people must do most of the work.
Capital-intensive technology
A process in which machines and equipment do most of the work.
Plant layout
The arrangement of machinery, equipment and personnel within a production facility.
Planning horizon
The period during which an operational plan will be in effect.
Purchasing
All the activities involved in obtaining required materials, supplies, components and parts from other firms.
Inventory control
The process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock-out costs.
Materials requirements planning (MRP)
A computerized system that integrates production planning and inventory control.
Just-in-time inventory system
A system designed to ensure that materials or supplies arrive at a facility just when they are needed so that storage and holding costs are minimized.
Scheduling
The process of ensuring that materials and other resources are at the right place at the right time.
Gantt chart
A graphic scheduling device that displays the tasks to be performed on the vertical axis and the time required for each task on the horizontal axis.
Program Evaluation and Review Technique
A scheduling technique that identifies the major activities necessary to complete a project and sequences them based on the time required to perform each one.
