Topic 8: Chapters 9-10 Flashcards
Production
Creation of finished goods
Factors of production
Land, labor, capital, entrepreneurship and knowledge
Production management
What managers do to help a firm create goods
Operations management
Transforms resources into goods and services
Form utility
The value of producers add to materials in the creation of finished goods
Process manufacturing
Part of production that physically or chemically changes materials
Assembly process
Part of production process that puts together components
Continuous process
Long production runs turn out finished goods over time
Intermittent process
Production run is short and the machines are changed frequently to make different products
Computer aided design
Use of computers in the design of products
Computer aided manufacturing
Use of computers in manufacturing of products
Computer integrated manufacturing
Both computer aided design and manufacturing
Flexible manufacturing
Machines that can do multiple tasks to produce a variety of products
Lean manufacturing
Using less of everything compared to mass production
Mass customization
Tailoring products to meet the needs of a large number of individual customers
Six sigma quality
A quality measure that allows only 3.4 defects per million opportunities
Statistical quality control
Continually monitor all phases of the production process
Statistical process control
Taking samples of product components at each stage of production and plotting on a graph
ISO 14001
Collection of best practices
Program evaluation and review technique
Analyzing tasks involved in making a product and how long it takes
Critical path
In PERT the sequence of tasks that takes the longest time to complete
Gantt Chart
What projects are being worked on and what stage they are in
Intrinsic reward
Personal satisfaction when you complete goals
Extrinsic reward
Pay, praise and promotions given as recognition for good work
Scientific management
Studying workers to find the most efficient ways of doing things and teaching people
Time motion studies
Begun by Frederick Taylor, study of what tasks need to be performed to complete a job
Principal of motion economy
Every job can be broken down into a series of elementary motions
Hawthorne effect
The tendency that people behave differently when they are being studied
Maslow’s hierarchy of needs
Theory of motivation (basic need need to be meant to reach self actualization)
Some things that motivate workers
- earned recognition
- advancement opportunities
- peer and group relationships
- pay
Examples of motivators
- work itself
- recognition
- growth
- achievement
Examples of hygiene or maintenance factors
- supervision
- company policies
- working conditions
- salary and status
Goal setting theory
Setting goals can motivate employees as long as they are accepted, followed up by feedback and supported by organizational conditions
Management by objectives
Involves a cycle of discussion, review and evaluation
Expectancy theory
Victor Vrooms theory that the amount of effort employees exert depends on their expectations of the outcome
Equity theory
Employees try to maintain equity between inputs and outputs compared to others in similar positions
Job enrichment
A motivational strategy that emphasizes motivating the worker through the job itself
Job enlargement
Combining multiple tasks in one large and more interesting task
Job rotation
Involves moving employees from one job to another
