Larry Jarrell busn 110, chapter 17 Flashcards
goods are:
tangible products
services are:
intangible products
managing all of the activities involved in creating value by producing goods and services and distributing them to customers
define operations management
producing output or achieving a goal at the lowest cost
define efficiency
using resources to create value by providing customers with goods and services that offer a better relationship between price and perceived benefits
define effectiveness
a production system where the work stations and equipment are located along the line of production, as with assembly lines
define product layout
a design for the floor plan of a plant which aims to improve efficiency by arranging equipment according to its function
define process layout
equipment layout configured to support cellular manufacturing.
define cellular layout
lets the product stay in one place while workers and machinery move to it as needed
define fixed position layout
Factors that affect location decisions (6 things)
- adequacy of utilities
- land
- labor market conditions
- transportation factors
- quality-of-life factors
- legal and political environment
Benefits of holding larger inventories (6 things)
- smoother production schedules
- protection against stock-outs and lost-sales
- reduced ordering costs
- tied-up funds
- additional holding costs
- increased risk
a project management tool that illustrates the relationships among all the activities involved in completing a project and identifies the sequence of activities likely to take the longest to complete
define critical path method (CPM)
activities in a project that must be completed before some other specified activity can begin
define immediate predecessors
the sequence of activities in a project that is expected to take the longest to complete
define critical path
the network of relationships that channels the flow of inputs, Information, and financial resources through all of the processes directly or indirectly involved in producing goods and services and distributing them to customers
define value chain
performance of processes internally that were previously performed by other organizations in a supply chain
define vertical integration
arranging for other organizations to perform supply chain functions that were previously performed internally
define outsourcing
software-based approach to integrate an organization’s information flows
define enterprise resource planning (ERP)
the environment in which a customer and service provider interact
define servicescape
Factors affecting servicescape (3 things)
- ambience
- functionality
- signs, symbols, and artifacts
refers to factors like decor, background music, lighting, noise levels, scent, etc.
define ambience
replacing human operation with controlled machines
define automation
a reprogrammable machine that is capable of manipulating items, tools, parts, materials, and specialized devices in order to perform a variety of tasks
define robot
advantages of robots (3 things)
- they’re flexible
- do the jobs most undesirable jobs
- they do not get tired
an approach to quality improvement that calls for everyone within an organization to take responsibility for improving quality and emphasizes the need for a long-term commitment to continuous improvement
define total quality management (TQM)
a production that emphasizes the production of goods to meet actual current demand, thus minimizing the need to hold inventories of finished goods and work in process at each stage of the supply chain.
define just-in-time (JIT) production
