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Chapter 5
Managing Operations
29
Management
Undergraduate 3
04/24/2012

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Term
assemble to order (ATO)
Definition
Products that are produced from standard components and modules.
Term
back-office processes
Definition
Processes that are not seen by the customer.
Term
batch process
Definition
A process in which goods or services are produced in groups (batches) and not in a continuous stream.
Term
break-even analysis
Definition
A costbased quantitative decisionmaking tool that examines sales revenues and total costs.
Term
cellular manufacturing
Definition
The production of products with similar process characteristics on small assembly lines called cells.
Term
continuous process
Definition
A single-flow process used for high-volume commodity products.
Term
customer contact
Definition
The presence of the customer in a process.
Term
takt time
Definition
The maximum allowable cycle time at each work station.
Term
diseconomies of scale
Definition
Occur when the cost per unit increases as an operation's size increases.
Term
economies of scale
Definition
As production volumes increase with additions of capacity, the unit cost to produce a product decreases to an optimal level.
Term
engineer to order (ETO)
Definition
Unique, customized products.
Term
fixed-position layout
Definition
The layout used when the product cannot be moved during production.
Term
front-office processes
Definition
Processes that have contact with the customer.
Term
job shop
Definition
A flexible process structure for products that require different inputs and have different flows through the process.
Term
learning curve
Definition
As the production volume doubles, the labor hours required decrease by a constant proportion.
Term
line balancing
Definition
Used to assign tasks so that idle time and the number of workstations are minimized.
Term
make to order (MTO)
Definition
Products that have similar designs but are customized during production.
Term
make to stock (MTS)
Definition
Finished goods that are held in inventory in advance of customer orders.
Term
mass customization
Definition
Uses advanced technologies to customize products quickly and at a low cost.
Term
precedence relationships
Definition
Presents the order in which tasks must be completed.
Term
process automation
Definition
The use of mechanization and information technologies to reduce the need for human involvement and decision making in a process.
Term
process layout
Definition
A layout that groups together similar resources.
Term
product families
Definition
Groups of products that have similar processing requirements.
Term
product layout
Definition
A layout where resources are arranged according to a regularly occurring sequence of activities.
Term
product-process matrix
Definition
Categorizes processes into structures based on output volume and variety.
Term
project
Definition
A one-time or infrequently occurring set of activities that create outputs within pre-specified time and cost schedules.
Term
repetitive process
Definition
A process in which discrete products flow through the same sequence of activities.
Term
service blueprinting
Definition
An approach similar to process mapping that analyzes the interface between customers and service processes.
Term
service process matrix
Definition
Categorizes service processes based upon the degree of customization/ customer interaction and labor/capital intensity.
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