Chapter 6 Flashcards
The creation of goods and services. Turning inputs into outputs
Production
Individuals who manage the production process
Operations managers
What three types of production processes are operations managers responsible for
Production planning
Production control
Production improvement
The aspect of operations management in which a firm considers the competitive landscape and its own strategic goals in an effort to find the best production processes/methods
Production planning
Decisions that focus on quality, cost, scheduling and day to day operations
Production control
Developing methods to increase output with the same amount of input
Production improvement
When a company manufactures many identical goods at once
Mass production
Mass produced up to a point and then tailored to the individuals needs or desires
Mass customization
The creation of products one at a time based on the specifications of each individual customer
Customization
Raw materials or human labor used to create goods and services
Inputs
The amount of goods produced and services provided within a period of time
Output
The basic inputs are broken down into one or more outputs. Often broken down materials are combined to be used in a process, recipe or formula to produce an output
Process manufacturing
Basic inputs are either combined to create the output or transformed into the output. The different parts that create the output can be easily touched, counted it sorted in the end product. You can tell how many windows are in a car
Assembly process
The process of scheduling resources in a manner that allows a company to make the most products in the smallest window of time
Production timing
A production process that uses long production runs lasting days, weeks, or months without equipment shutdowns; generally used for high-volume, low-variety products with standardized parts
Continuous processes
A production process that uses short production runs to make batches of different products; generally used for low-volume, high-variety products
intermittent processes
The placement of a production facility in which your goods or services will be produced
Localization
The factors that contribute to decisions about the localization of a product
Availability of production inputs
Marketing factors
Manufacturing environment
Local incentives
Availability of production inputs
Tech start-ups in silicon valley because there are so many coders already living there
How easy it is for customers to engage with the company based on proximity
Marketing factors
Being located near other production facilities can have greater efficiency
Manufacturing environment
Businesses bring in money and jobs, so local governments incentivize production in their regions
Example: Georgia offered many incentives so Amazon would build its HQ2 there
Local Incentives
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
Process layout
A facility arrangement in which workstations or departments are arranged in a line with products moving along the line
product layout
A facility arrangement in which the product stays in one place and workers and machinery move to it as needed
Fixed position layout
Production technique that uses small, self-contained production units, each performing all or most of the tasks necessary to complete a manufacturing order
Cellular manufacturing
The process of ensuring that all the resources necessary for production will be available at specific, strategic moments during the production process
Resource planning
A list of the items and the amount of each required to make a given product
Bill of materials
The process of buying production inputs from various sources
Purchasing/procurement
A firm’s decision to make its own production materials or buy them from outside sources
Make-or-buy
The purchase of items from an outside source rather than making them internally
outsourcing
The supply of goods that a firm holds for use in production or for sale to customers
Inventory
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
Inventory management
The process of smoothing transitions along the supply chain so that a firm can satisfy its customers with quality goods and services
Supply chain management
Setting out the workflow—the sequence of machines and operations through which the product progresses from start to finish
Routing
Routing technique that uses simple icons to visually represent the flow of materials and information from producers through a factory to customers
Value stream mapping
The aspect of production control that involves specifying and controlling the time required for each step in the production process
Scheduling
Bar graphs plotted on a time line to show the relationship between scheduled and actual production times
Gantt Charts
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.
CPM critical path method
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
PERT program evaluation and review technique
Goods and services that meet customer expectations by providing reliable performance
Quality
The process of creating quality standards, producing goods that meet them, and measuring finished goods and services against those standards
Quality Control
holds each member of the production process, from supply chains to assembly lines, accountable for producing quality products and ensuring the needs of the customer are met
Quality management
The use of quality principles in all aspects of a company’s production and operations
Total quality management (TQM)
A commitment to constantly seek better ways of doing things to achieve greater efficiency and improve quality
Continuous improvement
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. 3.4 or fewer defects per 1 million products
Six Sigma
Streamlining production by eliminating steps in the production process that do not add benefits that customers want
Lean manufacturing
A system in which materials arrive exactly when they are needed for production, rather than being stored on-site
(JIT) Just-in-time
Acquiring raw materials and moving products from producers to industrial users and consumers
Logistics
the longest path on the CPM diagram and the shortest timeframe that the project could be completed in
Critical path
