Chapter 8: Producing Quality Goods and Services Flashcards
primary goals of production is customer satisfaction which is closely linked to
quality
the conversion of ideas and resources into goods and services
production
the production planning process includes
design planning, facilities planning and operational planning
considers the strategic goals and resources of an organization
design planning
identifies a site where the good/service can be produced
facilities planning
decides on the amount of goods/services that will be produced within a specific time period
operational planning
3 differences between production of manufactured goods and the production of services
- types of resources used 2. timing of product consumption 3. measuring quality
a plan for converting an idea into an actual product
design planning
involves a set of activities intended to identify new ideas that have the potential to result in new goods/services
research and development (R&D)
a group of similar products that differ only relatively
product line
_____ play an important role in making product line decisions
marketing managers
gives customers more choice
long product line
marketing employees want a __________ that offers customers more options
long product line
the amount of product an organization can produce in a given period of time
capacity
a process used to adjust the amount of goods or services that are produced by a business
operational planning
designing a product line, estimating production capacity and evaluating production technology options are included in:
design planning considerations
3 general types of facility layout
process layout, product layout, fixed-position layout
used when different operations are required for creating small batches of different products or working on different parts of a product
process layout
separate stations for distinct tasks, for low-volume customized products and products move through in any sequence
process layout
used when all products undergo the same operations in the same sequence
product layout
product layout is also called the
assembly line
layout used for high-volume, standardized production runs
product layout
used when a very large product is produced
fixed-position layout
successful production depends on 3 aspects of operational planning and control
supply chain management, scheduling and quality control
one solution to material shortages is
to carry large amounts of inventory
a computerized system that integrates production planning, inventory control, quality statistics and data
enterprise resource planning (ERP)
a computerized system that integrates production planning and inventory control (first innovation to make supply chain management possible)
Materials requirement planning (MRP)
the process of specifying and controlling time required for each step in the process
schedule
technique for scheduling a complex project and maintaining control of the schedule
PERT (Program Evaluation and Review Technique)
graphic scheduling device that displays the task to be performed on the vertical axis and the time required for each task on the horizontal axis
Gantt Chart
the sequence of activities that take the longest time from start to finish
critical path
a consumer measures quality by
how well a good serves its purpose
the process of ensuring that goods/services are produced in accordance with design specifications
quality control
coordinated efforts directed at improving customer satisfaction
total quality management (TQM)
improving customer satisfaction, increasing employee participation, quality improvement and strengthening supplier partnerships
coordinated efforts of Total Quality Management
an approach that relies on statistical data and improved methods to eliminate defects
Six Sigma
what certifies that companies meet a set of standards for quality control procedures, production processes and product testing
the ISO certification
