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ch. 10
acheiving world class operations management
53
Business
Undergraduate 1
11/03/2010

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Term
production
Definition
the creation of products and services by turning inputs, such as natural resources, raw materials, human resources,and capital, into outputs, which are products and services.
Term
operations managment
Definition
management of the production process
Term
production planning
Definition
the aspect of operations management in which the firm considers the competitive environment and its own stragic goal in an effort to find the best productin methods
Term
production process
Definition
the way a good or service is created
Term
mass production
Definition
the manufacture of many identical goods at once
Term
mass customization
Definition
a manufacturing process in which goods are mass produced up to a point and then custom-tailored to the needs or desires of individual customers
Term
customization
Definition
the production of goods or services one at a time  according to the specific needs or wants of individual customers
Term
job shop
Definition
a manufactering firm that produces goods in response to customer orders
Term
process manufacturing
Definition
a production process in which the basic input is broken down into one or more outputs (products)
Term
assembly process
Definition
a production process in which the basic inputs are either combined to create the output or transformed into the output
Term
continuous process
Definition
a production process that uses long production runs lasting days, weeks, or months without equipment shutdowns; generally used for high volume, low variety products with standardized parts
Term
intermittent process
Definition
a production process that uses short production runs to make batches or different products; generally used for low volume, high variety products.
Term
process layout
Definition
a ficility  arrangement in which work flows according to the production process, all workers performing similar tasks are grouped together, and producs pass from one workstation to another.
Term
product(or assembly line) layout
Definition
a facility arrangent in which workstations or departments are arranged in a line with products moving along the line
Term
fixed position layout
Definition
a facility arrangement in which the product stays in one place and workers and machinery move to it as needed
Term
cellular manufacturing
Definition
production technique that uses small, self contained produciton units, each performing all or most of the tasks necessary to complete a manufacturing order
Term
bill of material
Definition
a list of the items and the number of each required to make a given product
Term
purchasing
Definition
the process of buying production inputs form various sources;also called procurement
Term
make-or-but decision
Definition
the determination by a firm of whether to make its own production materials or to buy them from outside sources.
Term
outsourcing
Definition
the purchase of items from an outside source rather than making them internally
Term
inventory
Definition
the supply of goods that a firm holds for use in production or for sale to customers
Term
inventory management
Definition
the determination of how much of each type of inventory a firm will keep on hand and the ordering, recieving, storing, and tracking of it.
Term
perpetual inventory
Definition
a continuously updated list of inventory levels, orders, sales, and receipts
Term
materials requirment planning (MRP)
Definition
a computerized system of controlling the flow of resources and inventory. a master schedule is used to ensure that the materials, labor, and equipment needed for production are at the right places in the right amounts at the right times
Term
manufacturing resource planning II (MRPII)
Definition
a complex computerized system that integrates data from many departments to allow managers to more accurately forecast and asses the impact of production plans on profitability
Term
enterprise resourcing planning (ERP)
Definition
a computerized resource-planning system that incorporates information about the firms supplieers and customers with its internally generated data.
Term
supply chain
Definition
the entire sequences of securing inputs, producing goods, and delivering goods to customers
Term
supply chain management
Definition
the process of smoothing transitions along the supply chain so that the firm can sarisfy its customers with quality products and services; focuses on developing tight bonds with suppliers
Term
e-procurement
Definition
the process of purchasing suppliers and materials online using the internet
Term
electronic data interchange (EDI)
Definition
the electronic exchange of information between two trading partners
Term
routing
Definition
the aspect of production control that involves setting out the work flow- the sequence of machines and operations through which the product or service progresses from start to finish
Term
scheduling
Definition
the aspect of production control that involves specifying and controlling the time required for each step in the production process
Term
gannt charts
Definition
bar graphs plotted on a time line that show the relationship between scheduled and actual production
Term
critical path method (CPM)
Definition
a scheduling tool that enables a manager to determine the critical path of activities for a project- the activities that will cause the entire project to fall behind schedule if they are not completed on time.
Term
critical path
Definition
in a critical path method network, the longest path through the linked activities.
Term
program evaluation and review technique (PERT)
Definition
a scheduling tool that is similar to the CPM method but assigns three time estimates for each activity (optimistic, most probablle, and pessimistic) allows managers to anticipate delays and potential problems and schedule accordingly.
Term
quality
Definition
goods and services that meet customer expecations by providing reliable performance
Term
quality control
Definition
the process of creating quality standards, producing goods that meet them and measuring finished goods and services against them.
Term
total quality management (TQM)
Definition
the use of quality principles in all aspects of a companys production and operations
Term
continuous improvement
Definition
a commitment to constantly seek better ways of doing things in order to acheive greater efficiency and improve quality
Term
six sigma
Definition
a quality control process that relies on the defining what needs to be done to ensure quality measuring and analyzing production results statistically, and finding ways to improve and control quality
Term
malcom baldrige national quality award
Definition
an award given to recognize U.S companies that offer goods and services of world class quality. est. by congress in 1987 and named for a former secretary of commerce
Term
ISO 9000
Definition
a set of five techical standards of quality management created by the international organization for standardization to provide a uniform way of determining wheter manufacturing plants and service organizations conform to sound quality procedures
Term
ISO 14000
Definition
a set of techical standards designed by the international organization for standardization to promote clean productionprocesses to protect the environment
Term
lean manufacturing
Definition
streamlining production by eliminating steps in the productoin process that do not add benefits customers want
Term
just in time (JIT)
Definition
a system in which materials arrive exactly when they are needed for production, rather than being stored on site
Term
computer aided design (CAD)
Definition
the use of computers to design and test new products and modify existing ones
Term
computer aided manufacturing (CAM)
Definition
the use of computers to develope and control the production process
Term
CAD/CAM systems
Definition
linked computer systems that combine the advantages of computer aided design an computer aided manufacruring, the system helps design the product, control the flow of resources needed to produce the product, and operate the production process.
Term
robotics
Definition
the technology involved in designing, constructing, and operating computer controlled machines that can perform tasks independently
Term
flexible manufacturing system (FMS)
Definition
a system that combines automated workstations with computer controlled transportation devices automatic guided vehicles (AGVs) that move materials between workstations and into and out of the system
Term
computer integrated manufacturing (CIM)
Definition
the combination of computerized manufacturing processes (like robots and flexible manufacturing systems) with other computerized systems that control design, inventory, production, and purchasing.
Term
business process management (BPM)
Definition
a unified system that has the power to integrate and optimize a companys sprayling functions by automating much of what it does
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