Chapter 9: Production and Operations Management

Question 1

assembly process

Answer 1

The part of the production process that puts together components.

Question 2

computer-aided design (CAD)

Answer 2

The use of computers in the design of products.

Question 3

computer-aided manufacturing (CAM)

Answer 3

The use of computers in the manufacturing of products.

Question 4

computer-integrated manufacturing (CIM)

Answer 4

The uniting of computer-aided design with computer-aided manufacturing.

Question 5

continuous process

Answer 5

A production process in which long production runs turn out finished goods over time.

Question 6

critical path

Answer 6

In a PERT network, the sequence of tasks that takes the longest time to complete.

Question 7

enterprise resource planning (ERP)

Answer 7

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 order fulfillment—into a single integrated software program that uses a single database.

Question 8

facility layout

Answer 8

The physical arrangement of resources (including people) in the production process.

Question 9

facility location

Answer 9

The process of selecting a geographic location for a company’s operations.

Question 10

flexible manufacturing

Answer 10

The production of goods using less of everything compared to mass production.

Question 11

form utility

Answer 11

The value producers add to materials in the creation of finished goods and services.

Question 12

Gantt chart

Answer 12

Bar graph showing production managers what projects are being worked on and what stage they are in at any given time.

Question 13

intermittent process

Answer 13

A production process in which the production run is short and the machines are changed frequently to make different products.

Question 14

ISO 9001

Answer 14

The common name given to quality management and assurance standards.

Question 15

ISO 14001

Answer 15

A collection of the best practices for managing an organization’s impact on the environment.

Question 16

just-in-time (JIT) inventory control

Answer 16

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.

Question 17

lean manufacturing

Answer 17

The production of goods using less of everything compared to mass production.

Question 18

mass customization

Answer 18

Tailoring products to meet the needs of a large number of individual customers.

Question 19

materials requirement planning (MRP)

Answer 19

A computer-based operations management system that uses sales forecasts to make sure that needed parts and materials are available at the right time and place.

Question 20

operations management

Answer 20

A specialized area in management that converts or transforms resources (including human resources) into goods and services.

Question 21

process manufacturing

Answer 21

That part of the production process that physically or chemically changes materials.

Question 22

production

Answer 22

The creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge.

Question 23

production management

Answer 23

The term used to describe all the activities managers do to help their firms create goods.

Question 24

program evaluation and review technique (PERT)

Answer 24

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.

Question 25

purchasing

Answer 25

The function in a firm that searches for quality material resources, finds the best suppliers, and negotiates the best price for goods and services.

Question 26

quality

Answer 26

Consistently producing what the customer wants while reducing errors before and after delivery to the customer.

Question 27

Six Sigma quality

Answer 27

A quality measure that allows only 3.4 defects per million opportunities.

Question 28

statistical process control (SPC)

Answer 28

The process of taking statistical samples of product components at each stage of the 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.

Question 29

statistical quality control (SQC)

Answer 29

The process some managers use to continually monitor all phases of the production process to ensure that quality is being built into the product from the beginning.

Question 30

telecommuting

Answer 30

Working from home via computer and modem.