Chapter 9. Production and Operations Management Flashcards
production
the creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge
production management
describes all the activities managers do to help firms create goods
operations management
a specialized area in management that converts or transforms resources (including human resources) into goods and services
form utility
the value producers add to materials in the creation of finished goods and services
process manufacturing
the part of the production process that physically or chemically changes materials
assembly process
the part of the production process that puts together component
continuous process
long production runs turn out finished goods over time
intermittent process
the production run is short and the machines are changed frequently to make different products
computer aided design (CAD)
the use of computers in the design of products
computer-aided manufacturing (CAM)
the use of computers in the manufacturing of products
computer-integrated manufacturing (CIM)
the uniting of computer-aided design with computer aided manufacturing
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 consumption
tailoring products to meet the individual needs of customers
facility location
the process of selecting a geographic location for a company’s operations
telecommuting
working from home via computer and modem
facility layout
the physical arrangement of resources (including people) in the production process
product layout (assembly line layout)
used to produce large quantities of a few types of products
cellular or module layout
can accommodate changes in design or customer demand
fixed-position layout
a major feature of planning is scheduling work operations
materials requirement planning (MRP)
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
enterprise resource planning (ERP)
a newer version of MRP that combines the computerized functions of all the divisions and subsidiaries of the firm – such as finance, human resources, and order of fulfillment – into a single integrated software program that uses a single database
purchasing
the function in a firm that searches for quality material sources, finds the best suppliers, and negotiates the best price for goods and services
just-in-time (JIT) 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
