Chapter 6 Production and Operations Management
The part of the production process that puts together components.
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.
A production process in which long production runs turn out finished goods over time.
In a PERT network, the sequence of tasks that takes the longest time to complete.
Enterprises Resource Planning (ERP)
A newer version of materials requirement planning that combines the computerized functions of all the divisions and subsidiaries of the firm– such as finance, human resources, and order of the firm– such as finance, human resources, and order fulfillment– into a single integrated software program that uses a single database.
The process of selecting a geographic location for a company’s operations.
Designing machines to do multiple tasks so that they can produce a variety of products.
The value producers add to materials in the creation of finished goods and services.
Bar Graph showing production managers what projects are being worked on and what stage they are in at any given time.
A production process in which the production run is short and the machines are changed frequently to make different products.
The common name given to quality management and assurance standards.
A collection of the best practices for managing an organization’s impact on the environment.
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.
The production of goods using less of everything compared to mass production.
Tailoring products to meet the needs of individual customers.
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.
A specialized area in management that converts or transforms resources (including human resources) into goods and services.
The part of the production process that physically or chemically changes materials.
The creation of finished goods and services using the factors of production: land, labor, capital entrepreneurship, and knowledge.
The term used to describe all the activities managers do to help their firms create goods.
Program Evaluation and Review Technique (PERT)
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.
The function in a firm that searches for high-quality material resources, finds the best suppliers, and negotiates the best price for goods and services.
Consistently producing what the customer wants while reducing errors before and after delivery to the customer.
Six Sigma Quality
A quality measure that allows only 3.4 defects per 1 million opportunities.
Statistical Process Control (SPC)
The process of testing 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.
Statistical Quality Control (SQC)
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.
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