Chapter 9 Flashcards
system
An interconnected and coordinated set of elements and processes that converts inputs to desired outputs
value chain
All the elements and processes that add value as raw materials are transformed into the final products made available to the ultimate customer.
outsourcing
Contracting out certain business functions or operations to other companies.
value webs
Multidimensional networks of suppliers and outsourcing partners.
offshoring
Transferring a part or all of a business function to a facility (a different part of the company or another company entirely) in another country.
reshoring
Bringing previously offshored operations back to their original location.
supply chain
A set of connected systems that coordinates the flow of goods and materials from suppliers all the way through to final customers.
supply chain management (SCM)
The business procedures, policies, and computer systems that integrate the various elements of the supply chain into a cohesive system
inventory
Goods and materials kept in stock for production or sale.
inventory control
Determining the right quantities of supplies and products to have on hand and tracking where those items are.
procurement
The acquisition of the raw materials, parts, components, supplies, and finished products required to produce goods and services.
materials requirements planning (MRP)
Planning system that works backward from a company’s sales forecasts to make sure it has enough of everything required to build goods or perform services in a timely manner, taking into account the firm’s inventory levels and production capacity.
enterprise resource planning (ERP)
Planning system that expands the MRP concept to address the needs of the entire organization, from manufacturing to sales to human resources.
How does SCM help companies?
Manage risks, Respond to customer needs, Manage business relationships, Promote sustainability through their supply chains
production and operations management
Overseeing all the activities involved in producing goods and services.
productivity
The efficiency with which an organization can convert inputs to outputs
lean systems
Systems (in manufacturing and other functional areas) that maximize productivity by reducing waste and delays.
just-in-time (JIT)
Inventory management in which goods and materials are delivered throughout the production process right before they are needed.
customized production
The creation of a unique good or service for each customer.
mass production
The creation of identical goods or services, usually in large quantities.
mass customization
A manufacturing approach in which part of the product is mass produced and the remaining features are customized for each buyer.
capacity planning
Establishing the overall level of resources needed to meet customer demand.
critical path
In a PERT network diagram, the sequence of operations that requires the longest time to complete.
Gantt Chart
Shows the order in which tasks must be completed
