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Chapter 10 production and operations management

assembly process
part of the production process that puts together components
computer-aided design
the use of computers in the design of products
computer-aided manufacturing
bringing computers into the production process
computer-integrated manufacturing
the uniting of CAD and CAM
continuous process
long production runs turn out finished goods over time
critical path
in a PERT network, the sequence of tasks that takes the longest time to complete
enterprise resource planning
newer version of materials requirement planning, 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
facility layout
physical arrangement of resources, including people, to most efficiently produce products and provide services
facility location
the process of selecting a geographic location for a company’s operations
flexible manufacturing
designing machines to do multiple tasks so they can produce a variety of products
form utility
value producers add to materials in the creation of finished goods and services
gantt chart
bar graph that shows what projects are being worked on and how much has been completed at any given time
intermittent process
production process in which the production run is short and the machines are changed frequently to make different products
ISO 14000
collection of the best practices for managing an organization’s impact of the environment
ISO 9000
the common name given to quality management and assurance standards
just-in-time inventory control
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
lean manufacturing
production of goods using less of everything than in mass production
mass customization
tailoring products to meet the needs of individual customers
materials requirement planning
a computer based operations management system that uses sales forecasts to make sure needed parts and materials are available at the right time and place
operations management
specialized area in management that converts or transforms resources, including human resources, into goods and services
process manufacturing
the part of the production process that physically or chemically changes material
production
creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge
production management
the activities the managers do to help their firms create goods
program evaluation and review technique
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
purchasing
function in a firm that searches for high quality material resources, finds the best suppliers, and negotiates the best price for goods and services
quality
consistently producing what the customer wants while reducing errors before and after delivery
six sigma quality
quality measure that allows only 3.4 defects per million opportunities
statistical process control
process of testing statistical samples of product components at each stage of production and plotting the test results on a graph. managers can thus see and correct any deviation from quality standards
statistical quality control
process used by managers to continually monitor all phases of the production process and assure quality is being built into the product from the beginning
telecommuting
working from home via computer

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