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
Continuous process
A production process in which long production runs turn out finished goods over time
Intermittent process
A production process in which the production run is short and the machines are changed frequently to make different products
MRP: Materials requirement planning
A computer based production management system that uses sales forecasts to make sure that needed parts and materials are available at the right time and place
ERP: Enterprise resource planning
A computer application that enables multiple firms to manage all their operations (finance, requirements planning, human resources, and order fulfillment) on the basis of a single, integrated set of corporate data
Just in time inventory control
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
Purchasing
The function in a firm that searches for quality material resources, finds the best suppliers, and negotiates the best price for goods and services
Flexible manufacturing
Designing machines to do multiple tasks so that they can produce a variety of products
Lean manufacturing
The production of goods using less of everything compared to mass production
Mass customization
Tailoring products to meet the needs of individual customers
Competing in time
Being as fast as or faster than competition in responding to consumer wants and needs and getting goods and services to them
Computer-aided design
The use of computers in the design of products
Computer-aided manufacturing
The use of computers in the manufacturing of products
Computer-integrated manufacturing
The uniting of computer-aided design with computer-aided manufacturing
PERT: Program evaluation and review technique
A method for analyzing the tasks involved in completing a given project, estimating the time needed to complete the task, and identifying the minimum time needed to complete the total project
Critical path
in a PERT network, the sequence of tasks that takes the longest time to complete
Gantt chart
Bar graph showing production managers what projects are being worked on and what stage they are in at any given time
