Chapter 10: Producing World Class Goods And Services Flashcards
Research and development
Work directed toward the innovation, introduction, and improvement of products and processes
Production
Creation of goods and services using land, labour, capital goods, entrepreneurship, and knowledge
Production management
The term used to describe all of the activities that managers do to help their firm create goods
Operations management
A specialized area in management that converts or transforms resources into goods and services
Facility location
Selecting a geographic location for a company’s operations
Telecommuting
Working from home via computer
Facility layout
Physical arrangement of resources in the production process
Materials requirement planning
Computer based production management system that uses sales forecasts to make sure that needed parts and materials are available at the right time and place
Enterprise resource planning
A computer application that enables a firm to manage all of its operations (finance, requirement planning, Human Resources, and order fulfilment) on the basis of a single, integrated set of corporate data
Purchasing
The functional area that searches for quality material resources, finds the best suppliers, and negotiates the best price for the goods/services
Just-in-time inventory control
Production process that in which a minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered just in time for use on assembly line
Quality
Consistently producing what the customer wants while reducing errors before and after delivery to the customer
Six sigma quality
A quality measure that allows only 3.4 defects per million
Statistical quality control
Process some managers use to continually monitor all phases of the production process to assure that quality is being built into the product from the beginning
Statistical process control
The process of testing stariscsl samples of products conponents at each stage of the production process and plotting results on graph
Logistics
Those activities that focus on getting the right amount of the right products or services to the right place at the right time at the lowest possible cost
Supply chain
Sequence of firms that perform activities required to create and deliver a good to consumers or industrial users
Supplier, manurfacturer, wholesaler, retailers, consumers
Supply chain management
Intergration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering good that provide value to customers
Form utility
The value added by the creation of finished goods and services
Silicon to computer chips
Process manufacturing
Part of the production process that physically or chemically changes materials
Boiling physically changes the egg
Assembly process
The part of production that puts together components
Egg+toast+coffee=breakfast
Continuous process
Production process in which long production runs turn out finished goods over time
Intermittent plant
Production process in which the production run is short and the machines are changed frequently to make different products
Flexible manufacturing
Designing machines to do multiple tasks so that they can produce a variety of products
Lean manufacturing
Production of goods using less of everything compared to mass production
Mass customization
Tailoring products to meet the needs of individual customers
Computer aided design
The use of computers in the design of products
Computer aided manufacturing
The use of computers in the manufacturing of products
Computer intergrated manufacturing
The uniting of computer aided design with computer aided manufacturing
Program evaluation and review technique
A method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete total project
Critical path
In PERT network, sequence of tasks that takes the longest time to complete
4 differences between goods and services
1) Tangible vs intangible
2) Consume now vs consume later
3) Perishable vs non-perishable
4) Heterogeneous vs homogeneous
What is operations managment
Converts or transforms resources into goods/services
supply chain order
Supplier, manurfacturer, wholesaler, retailers, consumers
