Chapter 11 (Operations) Flashcards
Operations Management
oversee the process of transforming resources into goods and services
During production planning, managers determine (3):
- Production Process
- Site Selection
- Layout Planning
Three basic manufacturing strategies:
- Make-to-order
- Mass Production
- Mass Customization
In choosing site selection, managers look for (5):
- minimal shipping costs
- supply of skilled workers
- favorable community
- resources at a low cost
- favorable business climate
Service Industry consists of __% of jobs and __GDP
80%; 75%
Manufacturing Industry consists of __% of jobs and ___GDP
10%; 23%
Process Layout
groups together workers or departments that perform similar tasks
Product Layout
high-volume goods are produced in assembly-line fashion—that is, a series of workstations at which already-made parts are assembled
Cellular Layout
small teams of workers handle all aspects of building a component, a “family of components,” or even a finished product
Fixed-Position Layout
used to make large items (such as ships or buildings) that stay in one place while workers and equipment go to the product
Materials Management encompasses (3):
purchasing
inventory control
work scheduling
Electronic Data Interchange (EDI)
process transactions and transmit purchasing documents
just-in-time production
materials arrive just in time to enter the manufacturing process
Material Requirements Planning (MRP)
uses computer programming to determine material needs
Gantt Chart
easy-to-use graphical tool that helps operations managers determine the status of projects
PERT Chart
used to diagram the activities required to produce a good, specify the time required to perform each activity in the process, and organize activities in the most efficient sequence; highlights critical path, the one that will take the most time
Computer-aided Design
used to create models representing the design of a product.
Computer-integreated Manufacturing
systems that not only determine the steps needed to produce components but also instruct machines to do the necessary work
Total Quality Management (TQM)
focus on customer satisfaction, engage all members of the organization in quality efforts, and strive for continuous improvement in the design, production, and delivery of goods and services
Benchmark
examining competitors to find ways to improve their own performance
Outsourcing
having outside vendors manufacture components or even entire products or provide services, such as information-technology support or service center operations
Flexible Manufacturing Systems (FMS)
computer-controlled equipment can easily be adapted to produce a variety of goods
“PDCA”
“Plan-Do-Check-Act”
