Chapter 10 Key Words

Question 1

assembly process

Answer 1

A production process in which the basic inputs are either combined to create the output
or transformed into the output.

Question 2

bill of material

Answer 2

A list of the items and the number of each required to make a given product.

Question 3

blockchain technology

Answer 3

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

Question 4

business process management (BPM)

Answer 4

A unified system that has the power to integrate and optimize a
company’s sprawling functions by automating much of what it does.

Question 5

CAD/CAM systems

Answer 5

Linked computer systems that combine the advantages of computer-aided design and
computer-aided manufacturing. The system helps design the product, control the flow of resources
needed to produce the product, and operate the production process

Question 6

cellular manufacturing

Answer 6

Production technique that uses small, self-contained production units, each
performing all or most of the tasks necessary to complete a manufacturing order.

Question 7

computer-aided design (CAD)

Answer 7

The use of computers to design and test new products and modify existing
ones.

Question 8

computer-aided manufacturing (CAM)

Answer 8

The use of computers to develop and control the production

process

Question 9

computer-integrated manufacturing (CIM)

Answer 9

The combination of computerized manufacturing processes
(such as robots and flexible manufacturing systems) with other computerized systems that control
design, inventory, production, and purchasing

Question 10

continuous improvement

Answer 10

A commitment to constantly seek better ways of doing things in order to achieve
greater efficiency and improve quality.

Question 11

critical path

Answer 11

In a critical path method network, the longest path through the linked activities.

Question 12

critical path method (CPM)

Answer 12

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.

Question 13

customization

Answer 13

The production of goods or services one at a time according to the specific needs or wants of
individual customers.

Question 14

e-procurement

Answer 14

The process of purchasing supplies and materials online using the internet.

Question 15

electronic data interchange (EDI)

Answer 15

The electronic exchange of information between two trading partners.

Question 16

enterprise resource planning (ERP)

Answer 16

A computerized resource-planning system that incorporates

information about the firm’s suppliers and customers with its internally generated data.

Question 17

fixed-position layout

Answer 17

A facility arrangement in which the product stays in one place and workers and
machinery move to it as needed.

Question 18

flexible manufacturing system (FMS)

Answer 18

A system that combines automated workstations with computer controlled transportation devices—automatic guided vehicles (AGV)—that move materials between
workstations and into and out of the system.

Question 19

Gantt charts

Answer 19

Bar graphs plotted on a time line that show the relationship between scheduled and actual
production.

Question 20

intermittent process

Answer 20

A production process that uses short production runs to make batches of different products; generally used for low-volume, high-variety products.

Question 21

inventory

Answer 21

The supply of goods that a firm holds for use in production or for sale to customers.

Question 22

inventory management

Answer 22

The determination of how much of each type of inventory a firm will keep on hand
and the ordering, receiving, storing, and tracking of inventory.

Question 23

ISO 14000

Answer 23

A set of technical standards designed by the International Organization for Standardization to
promote clean production processes to protect the environment.

Question 24

ISO 9000

Answer 24

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.

Question 25

job shop

Answer 25

A manufacturing firm that produces goods in response to customer orders.

Question 26

just-in-time (JIT)

Answer 26

A system in which materials arrive exactly when they are needed for production, rather
than being stored on-site.

Question 27

lean manufacturing

Answer 27

Streamlining production by eliminating steps in the production process that do not add
benefits that customers want.

Question 28

make-or-buy decision

Answer 28

The determination by a firm of whether to make its own production materials or to
buy them from outside sources.

Question 29

Malcolm Baldrige National Quality Award

Answer 29

An award given to recognize U.S. companies that offer goods
and services of world-class quality; established by Congress in 1987 and named for a former secretary of
commerce.

Question 30

manufacturing resource planning II (MRPII)

Answer 30

A complex computerized system that integrates data from
many departments to allow managers to more accurately forecast and assess the impact of production
plans on profitability.

Question 31

mass customization

Answer 31

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.

Question 32

mass production

Answer 32

The manufacture of many identical goods at once.

Question 33

materials requirement planning (MRP)

Answer 33

A computerized system of controlling the flow of resources and
inventory. A master schedule is used to ensure that the materials, labor, and equipment needed for
production are at the right places in the right amounts at the right times.

Question 34

operations management

Answer 34

Management of the production process.

Question 35

outsourcing

Answer 35

The purchase of items from an outside source rather than making them internally.

Question 36

perpetual inventory

Answer 36

A continuously updated list of inventory levels, orders, sales, and receipts.

Question 37

process layout

Answer 37

A facility arrangement in which work flows according to the production process. All workers
performing similar tasks are grouped together, and products pass from one workstation to another.

Question 38

process manufacturing

Answer 38

A production process in which the basic input is broken down into one or more
outputs (products).

Question 39

product (or assembly-line) layout

Answer 39

A facility arrangement in which workstations or departments are
arranged in a line with products moving along the line.

Question 40

production

Answer 40

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.

Question 41

production planning

Answer 41

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.

Question 42

production process

Answer 42

The way a good or service is created.

Question 43

program evaluation and review technique (PERT)

Answer 43

A scheduling tool that is similar to the CPM method but
assigns three time estimates for each activity (optimistic, most probable, and pessimistic); allows
managers to anticipate delays and potential problems and schedule accordingly.

Question 44

purchasing

Answer 44

The process of buying production inputs from various sources; also called procurement.

Question 45

quality

Answer 45

Goods and services that meet customer expectations by providing reliable performance.

Question 46

quality control

Answer 46

The process of creating quality standards, producing goods that meet them, and measuring
finished goods and services against them.

Question 47

robotics

Answer 47

The technology involved in designing, constructing, and operating computer-controlled machines
that can perform tasks independently

Question 48

routing

Answer 48

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.

Question 49

scheduling

Answer 49

The aspect of production control that involves specifying and controlling the time required for
each step in the production process.

Question 50

six sigma

Answer 50

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.

Question 51

supply chain

Answer 51

The entire sequence of securing inputs, producing goods, and delivering goods to customers.

Question 52

supply-chain management

Answer 52

The process of smoothing transitions along the supply chain so that the firm
can satisfy its customers with quality products and services; focuses on developing tight bonds with
suppliers.
T

Question 53

Total Quality Management (TQM)

Answer 53

The use of quality principles in all aspects of a company’s production
and operations.

Question 54

value-stream mapping

Answer 54

Routing technique that uses simple icons to visually represent the flow of materials
and information from suppliers through the factory to customers.