bus chap 9

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creation of finished goods

production management

management activities that helped firms create goods.

operations management

a specialized area in management that transform resources like human resources or innovations into goods and service.

form utility

the value producer add to the finished goods

process manufacturing

physically change material: change glass into a glass cup, boiling an egg.

assembly process

puts together two components (eggs and sausage) to make a product (breakfast)

continuous process

process that used to make mass produced goods

intermittent process

process that used to make custom made goods

CAD computer aided manufacturing

design in 3 D through computer

mass customization

tailor product to meet the the needs of large individual customers

facility location

process of selecting a geographic location for company’s operation location where there are inexpensive resourses, cheap labor, advance informational system, time to market, proximity to customers, cost of living and quality of life for empoyees.

facility layout

physical arrangement of recourses, including people, to most deficiently produce goods and provide services for customers. it’s usually designed to help customers to find things. they become more and more customers oriented.

fixed position layout

allow workers to congregate around the product to be completed. (such as bridge or airplane)

process layout

similar equipment and functions are grouped together. this allowed flixbility

MRP material requirement planning

computer based operation management that uses sales forecasts to make sure needed parts and materials are available at the right time and place.

enterprise resourses planning (ERP)

a new version of MRP. combine (computerize) all the departments in to a single integrated software that use single database. less time in payment and orders, less inventories and better customer service.


finding the best quality, best suppliers, and negoating for the best price.

JIT just in time inventory control

systems keep a minimum amount of inventory on the premises and deliver parts, supplies and other needs just in time to go to the assembly line. usually use ESP and they are computerized. right time, right place, at cheapest cost to meet both customers and production need.


consistently produce what the customers wants while reducing error before and after delivery to the customer. quality is not a outcome. it’s a consistent improvement

six sigma quality

3.4 defect per million opportunity. detect potential problems to prevent their occurrence.

statistical quality control (SQC)

process that control the quality and process from the beginning during all phrases

statically process control SPC

process of testing statistical samples of product components at each stage of production and plotting the test result on a graph. both SQC and SPC saved company lotz money find mistake before they happen

ISO 9000

the common name given to quality management and assurance standards. require a company determine what customer needs are, including regulatory and legal requirements, and make communication arrangement to handle issues such as complaints.

ISO 14000

collection of best practice for managing an organization’s impact on the environment. requirement including having an environmental policy, having specific improvement targets, conducting audits of environmental programs and maintaining to management review of the processes. meet both ISO 9000 and ISO 14000 means that the firm has a world class management system in both quality and environmental standards.

program evaluation and review technique (PERT)

analyze the tasks to complete a given project, estimate the time needed to compete each and compute the minimum time needed to complete the whole project. 1) sequencing the tasks needed to be done 2) estimatee time to complete each task 3) drawing PERT network illustrating the information from step 1 and 2 4) identify critical path

critical path

tasks that will took the longest time sequence of tasks that anywhere along this path will cause he project or production run to be late.

Gantt chart

bar graph. clearly shows what project are being worked on and how much has been completed at any given time.

A just-in-time inventory system usually reduces costs for:

Just-in-time inventory systems allow producers to reduce the amount of inventory they hold, thus keeping their inventory costs down. However, the supplier must deliver the needed materials and parts just in time to be used in the production process. This calls for more effort on the supplier’s part, and more costs.

A production process characterized by long production runs to turn out finished goods over time is known as a(n):

In a just-in-time inventory system, suppliers:

In a just-in-time system the supplier is linked by computer to the producer so that it becomes more like a department in the firm than a separate firm.

For most service businesses the quality standard has become:

Delighting customers by anticipating their needs has become the quality standard for most service businesses.

One strategy U.S. manufacturers have employed in order to become more competitive is:

U.S. manufacturers have emphasized a number of actions including relying on technology and the Internet to unite companies who have a stake in each other’s success.

____________ examines statistical samples of product components at each stage of the production process and plots the results on a graph in order to spot and correct any variances from desired quality levels.

One strategy U.S. manufacturers have employed in order to become more competitive is:

Response Feedback: U.S. manufacturers have emphasized a number of actions including relying on technology and the Internet to unite companies who have a stake in each other’s success.

A benefit of CAD (Computer Aided Design) and CAM (Computer Assisted Manufacturing) is:

Response Feedback: Computer Aided Design permits customization due to the ease of changing a design to satisfy individual tastes.

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