Chapter 8-Managing Service and Manufacturing Operations Flashcards
Operations Management (OM)
the development and administration of the activities involved in transforming resources into goods and services
Manufacturing
the activities and processes used in making tangible products; also called production
Production
the activities and processes used in making tangible products; also called manufacturing
Operations
the activities and processes used in making both tangible and intangible products
Inputs
the resources - such as labor, money, materials, and energy - that are converted into outputs
Outputs
the goods, services, and ideas that result from the conversion of inputs
Standardization
the making of identical interchangeable components or products
Modular Design
the creation of an item in self-contained units, or modules, that can be combines or interchanged to create different products
Customization
making products to meet a particular customer’s needs or wants
Capacity
the maximum load that an organizational unit can carry or operate
Fixed-Position Layout
a layout that brings all resources required to create the product to a central location
Project Organization
a company using a fixed-position layout because it is typically involved in large, complex projects such as construction or exploration
Process Layout
a layout that organizes the transformation process into departments that group related processes
Intermittent Organizations
organizations that deal with products of a lesser magnitude than do project organizations; their products are not necessarily unique but possess a significant number of differences
Product Layout
a layout requiring that production be broken down into relatively simple tasks assigned to workers, who are usually positioned along an assembly line
Continuous Manufacturing Organizations
companies that use continuously running assembly lines, creating products with many similar characteristics
Computer-Assisted Design (CAD)
the design of components, products, and processes on computers instead of on paper
Computer-Assisted Manufacturing (CAM)
manufacturing that employs specialized computer systems to actually guide and control the transformation processes
Flexible Manufacturing
the direction of machinery by computers to adapt to different versions of similar operations
Computer-Integrated Manufacturing (CIM)
a complete system that designs products, mages machines and materials, and controls the operations function
Supply Chain Management
connecting and integrating all parties or members of the distribution system in order to satisfy customers
Purchasing
the buying of all the materials needed by the organization; also called procurement
Inventory
all raw materials components, or partially completed products, and pieces of equipment a firm uses
Inventory Control
the process of determining how many supplies and goods are needed and keeping track of quantities on hand, where each item is, and who is responsible for it
Economic Order Quantity (EOQ) Model
a model that identifies the optimum number of items to order to minimize the costs of managing (ordering, storing, and using) them
Just-In-time (JIT) Inventory Management
a technique using smaller quantities of materials that arrive “just in time” for use in the transformation process and therefore require less storage space and other inventory management expense
Material-Requirements Planning (MRP)
a planning system that schedules the precise quantity of materials needed to make the product
Routing
the sequence of operations through which the product must pass
Scheduling
the assignment of required tasks to departments or even specific machines, workers, or teams
Quality Control
the processes an organization uses to maintain its established quality standards
total Quality Management (TQM)
a philosophy that uniform commitment to quality in all areas of an organization will promote a culture that meets customers’ perceptions of quality
Statistical Process Control
a system in which management collects and analyzes information about the production process to pinpoint quality problems in the production system
ISO 9000
a series of quality assurance standards designed by the International Organization for Standardization (ISO) to ensure consistent product quality under many conditions
ISO 14000
a comprehensive set of environmental standards that encourages companies to conduct business in a cleaner, safer, and less wasteful way; ISO 14000 provides a uniform set of standards globally
