Chapter 9: Production and Operations Management; Vocab and Questions

The creation of goods using land, labor, capital, entrepreneurship and knowledge (the factors of production).
Production Management
All the activities managers do to help firms create goods.
Operations Management
A specialized area in management that converts or transforms resources into goods and services.
Operations management includes:
-Inventory management
-Quality control
-Production scheduling
-Follow-up services
Form Utility
The value producers add to materials in the creation of finished goods and services.
Process Manufacturing
The part of production that physically or chemically changes materials.
Assembly Process
The part of the production process that puts together components.
Continuous Process
Long production runs turn out finished goods over time.
Intermittent Process
Production runs are short and the producer adjusts machines 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 they can produce a variety of products
Lean Manufacturing
Using less of everything than in mass production.
Mass Customization
Tailoring products to meet the needs of a large number of individual customers.
Facility Location
The process of selecting a geographic location for a company’s operations.
Working from home via computer.
Facility Layout
The physical arrangement of resources, including people, to most efficiently produce goods and provide services.
Facility layout depends on the processes performed
-Service: Help customers find products
-Manufacturing: Improve efficiency
Materials Requirement Planning (MRP)
A computer-based operations management system that uses sales forecasts to make sure parts and materials are available when needed.
Enterprise Resource Planning (ERP)
A newer version of MRP, combines computerized functions into a single integrated software program using a single database.
The function that searches for high-quality material resources, finds the best suppliers and negotiates the best price for goods and services.
Just-in-Time (JIT) Inventory Control
The production process in which a minimum of inventory is kept and parts, supplies and other needs are delivered just in time to go on the assembly line.
Consistently producing what the customer wants while reducing errors before and after delivery.
Six Sigma Quality
A quality measure that allows only 3.4 defects per million opportunities.
Statistical Quality Control
A process used to continually monitor all phases of the production process.
Statistical Process Control
A process of testing statistical samples of product components at each stage of production.
ISO 9000
The common name given to quality management and assurance standards.
ISO 14000
A collection of the best practices for managing an organization’s impact on the environment.
Program Evaluation and Review Technique (PERT)
A method for analyzing the tasks involved in completing a given project and estimating the time needed.
Critical Path
The sequence of tasks that takes the longest time to complete.
Gantt Chart
A bar graph that shows what projects are being worked on and how much has been completed.
Which of the following factors would not be part of a process to improve a business’s competitive positioning in a global marketplace?
Reducing product quality to keep costs low
What statement is most accurate in describing the trend in manufacturing in the United States?
Manufacturing jobs in the U.S. have declined significantly.
__________ is about converting resources into goods and services. It includes inventory management, quality control, production scheduling, follow-up services and more.
Operations management
New production techniques have:
made it possible to custom-make products for individual buyers.
The ________ puts together components to make a finished product.
assembly process
In order for a U.S. or non-European company to export manufactured goods to European countries, which of the following would most likely apply?
Companies that want to do business with the EU must be certified by ISO standards.
________ is the process managers use to continually monitor all phases of the production process to ensure that quality is being built into the product from the beginning and that quality is not being inspected into the product at the end of the production process.
Statistical quality control (SQC)
The idea of facility layout is to:
have offices, machines, and storage areas in the best position to enable workers to produce goods and services for their customers.
The U.S. award that recognizes firms that meet customer needs, produce high-quality products and have high-quality internal operations is known as:
The Malcolm Baldrige National Quality Award.
Many companies are moving from a(n) ________, in which workers do only a few tasks at a time to a ________, in which teams of workers combine to produce more complex units of the final product.
assembly-line layout; modular layout
Six Sigma Process
– Control
– Improve
– Analyze
– Measure
– Define
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