Chapter 9: Producing World-Class Goods & Services Flashcards
Production
The creation of finished goods and services using the factors of production
Production management
The term used to describe all the activities managers do to help their firms create goods
Operations management
A specialized area in management that converts or transforms resources, including human resources, into goods and services
Facility location
The process of selecting a geographic location for a company’s operations
Facility layout
The physical arrangement of resources, including people, in the production process
Quality
Consistently producing what the customer wants while reducing errors before and after delivery to the customer
Six sigma quality
A quality measure that allows only 3.4 defects per million opportunities
SQC: Statistical quality control
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
SPC: Statistical process control
The process of taking statistical samples of product components at each stage of the production process and plotting those on a graph. Any variances from quality standards are recognized and can be corrected if beyond the set standards
QFD: Quality function disployment
A process of linking the needs of end users (customers) to design, development, engineering, manufacturing, and service functions
ISO 9000
The common name given to quality management and assurance standards
ISO 14000
A collection of the best practices for managing an organization’s impact on the environment
Form utility
The value added by the creation of finished goods and services, such as the value added by taking silicon and making computer chips or putting services together to create a vacation package
Process manufacturing
That part of the production process that physically or chemically changes materials
Assembly process
That part of the production process that puts together components
