Chapter 15 Flashcards
production
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
operations management
management of the production process
production planning
the aspect of operations management in which the company considers its resources and its own strategic goals in an effort to determine the best production methods
production process
the way in which a good is made
mass production
the ability to manufacture many identical goods at once
mass customization
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
customization
the production of goods or services one at a time according to the specific needs or wants of individual customers
job shop
a manufacturing company that produces goods in response to customer orders
process manufacturing
a production process in which the basic input is broken down into one or more outputs (products)
assembly process
a production process in which the basic inputs are either combined to create the output or transformed into the output
continuous process
a production process that uses long production runs lasting days, weeks, or months without equipment shut-downs; generally used for high-volume, low-variety products with standardized parts
intermittent process
a production process that uses short production runs to make batches of different products; generally used for low-volume, high-variety products
process layout
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
product (assembly line) layout
a facility arrangement in which workstations or departments are arranged in a line with products moving along the line
fixed-position layout
a facility arrangement in which the product stays in one place and workers and machinery move to it as needed
cellular manufacturing
production technique that uses small, self-contained production units, each performing all or most of the tasks necessary to complete a manufacturing order
bill of material
a list of the items and the number of each required to make a given product
purchasing
the process of buying production inputs from various sources; also called procurement
make-or-buy decision
the determination by a company of whether to make its production materials or to buy them from outside sources
outsourcing
the purchase of items from an outside source rather than making them internally
inventory
the supply of goods that a company holds for use in production or for sale to customers
inventory management
the determination of how much of each type of inventory a company will keep on hand and the ordering, receiving, storing, and tracking of inventory
perpetual inventory
a continuously updated list of inventory levels, orders, sales, and receipts
materials requirement planning (MRP)
a computerized system of controlling the flow of resources and inventory, A master schedule is used to ensure that the materials, labour, and equipment needed for production are at the right places in the right amounts at the right times
manufacturing resource planning II (MRPII)
a complex, computerized system that integrates data from many departments to allow managers to forecast and assess the impact of production plans on profitability more accurately
enterprise resource planning (ERP)
a computerized resource-planning system that incorporates information about the company’s suppliers and customers with its internally generated data
supply chain
the entire sequence of securing inputs, producing goods, and delivering goods to customers
logistics
the management of the materials and services as they flow through an organization
supple chain management
the process of smoothing transitions along the supply chain so that the company can satisfy its customers with quality products and services; focuses on developing tighter bonds with suppliers
e-procurement
the process of purchasing supplies and materials by using the Internet
electronic data interchange (EDI)
the electronic exchange of information between two trading partners
routing
the aspect of production control that involves setting out the workflow, the sequence of machines and operations though which the product or service progresses from start to finish
value-stream mapping
a routing technique that represents the flow of materials and information from suppliers through the factory and to customers
scheduling
the aspect of production control that involves specifying and controlling the time required for each step in the production process
Gantt charts
bar graphs plotted on a timeline that show the relationship between scheduled and actual production
critical path method (CPM)
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
critical path
the longest path through the linked activities in a critical path method network
program evaluation and review technique (PERT)
a scheduling tool that is similar to the CPM method but assigns three time estimates for each activity (optimistic, most profitable, and pessimistic); it allows managers to anticipate delays and potential problems and schedule accordingly
quality
goods and services that meet customer expectations by providing reliable performance
quality control
the process of creating standards for quality, producing goods that meet them, and measuring finished products and services against them
total quality management (TQM)
the use of quality principles in all aspects of a company’s production and operations
continuous improvement
a constant commitment to seeking better ways of doing things to achieve greater efficiency and improved quality
quality assurance
more comprehensive than quality control, it strives for doing the job right the first time
Six Sigma
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 of improving and controlling quality
ISO 9000
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
ISO 14000
a set of technical standards designed by the International Organization for Standardization to promote clean production processes to protect the environment
lean manufacturing
streamlining production by eliminating steps in the production process that do not add benefits customers are willing to pay for
just-in-time (JIT)
a system in which materials arrive exactly when they are needed for production rather than being store on-site
computer-aided design (CAD)
the use of computers to design and test new products and modify existing ones
computer-aided manufacturing (CAM)
the use of computers to develop and control the production process
CAD/CAM systems
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, and operate the production process
robotics
the technology involved in designing, constructing, and operating computer-controlled machines that can perform tasks independently
flexible manufacturing system (FMS)
a system that combines automated workstations with computer-controlled transportation devices - automatic guided vehicles (AGVs) - that move materials between workstations and into and out of the system
computer-integrated manufacturing (CIM)
the combination of computerized manufacturing processes (such as robots and flexible manufacturing systems) with other computerized systems that control design, inventory, production, and purchasing
