Chapter 9 Flashcards
The creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge
Production
The term used to describe all the activities managers do to help their firms create goods
Production Management
A specialized area in management that converts or transforms resources (including human resources) into goods and services
Operations Management
The value producers add to materials in the create of the finished goods and services
Form Utility
That part of the production process that physically or chemically changes materials
Process Manufacturing
That part of the production process that puts together components
Assembly Process
A production process in which long production runs turn out finished goods over time
Continuous Process
A production process in which the production run is short and the machines are changed frequently to make different products
Intermittent Process
The use of computers in the design of products
Computer-Aided Design (CAD)
The use of computers in the manufacturing of products
Computer-Aided Manufacturing (CAM)
The uniting of computer aided design with computer aided manufacturing
Computer-Integrated Manufacturing (CIM)
Designing machines to do multiple tasks so that they can produce a variety of products
Flexible Manufacturing
The production of goods using less of everything compared to mass production
Lean Manufacturing
Tailoring products to meet the needs of individual customers
Mass Customization
The process of selecting a geographic location for a company’s operations
Facility Location
Working from home via computer
Telecommuting
The physical arrangement of resources (including people) in the production process
Facility Layout
A computer-based operations management system that uses sales forecasts to make are that needed parts and materials are available at the right time and place
Materials Requirement Planning (MRP)
A newer version of materials requirement planning (MRP) that combines the computerized functions of all the divisions and subsidiaries of the firm-such as finance, human resources, and other fulfillment- into a single integrated software program that uses a single database
Enterprise Resource Planning (ERP)
The function in a firm that searches for high-quality material resources, finds the best suppliers, and negotiates the best price for goods and services
Purchasing
A production process in which a minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered just in time to go on the assembly line
Just-in-Time (JIT) Inventory Control
Consistently producing what the customer wants while reducing errors before and after delivery to the customer
Quality
A quality measure that allows only 3.4 defects per million opportunities
Six Sigma Quality
The process some managers use to continually monitor all phases of the production process to assure that quality is being built into the product from the beginning
Statistical Quality Control (SQC)
The process of testing statistical samples of product components at each stage of production process and plotting those results on a graph. Any variances from quality standards are recognized and can be corrected if beyond the set standards
Statistical Process Control (SPC)
The common name given to quality management and assurance standards
ISO 9000
A collection of the best practices for managing an organization’s impact on the environment
ISO 14000
A method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project
Program Evaluation and Review Technique (PERT)
In a PERT network, the sequence of tasks that takes the longest time to complete
Critical Path
Bar graph showing production managers what projects are being worked on and what stage they are in at any given time
Gantt Chart
