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.
