Shared Flashcard Set


MGMT 1 - Chapter 9
Production and Operations Management
Undergraduate 4

Additional Management Flashcards





Manufacturing in the US

(overview of production and operations management)


- Years and increase in US output?

-World leading Manufacturer?

-Top6 US states for exports?

-Top 10 Manufacturers?

-US Economy Manufacturing or service Based?


- 2001-2009 US outbuse rose 4% each year


- US still world's leading manufacturer (25%)


-6 States: CA, TX, Ohio, Michigan, NY, Illinois


- Exxon, Chevron, Conoco Phillips, Gen.Electirc,Gen Motors, Ford motor, Valero Energy, Hewlett Packard, IBM, Proctor and gamble


- US no longer manufacturing based, 85% now services






The "Green" Movement

-Green Economy


- Movement improves the economy


- Green economy - worth more than 200 billion annually

- Consumers like products that "all natural" | "grown local"




Vocab: (Production and Operations)




-Production Management


-Operations Management



- Production:creation of goods using land, labor, capital, entrepreneurship and knowledge (FOP)


- Production Management: all the activities managers do to help firms creat firms


- Operations Management: specialized area in management that converts or transforms resources into goods and services

-(inventory management, quality control, production shecduling, follow up)


Production Process


-The production process


-Form Utility


-Process Manufacturing


- Production Process: inputs (land, labor, capital, entrepreneurship, knowledge) -> production control (planning, routing, scheduling, dispatching, follow up) -> outputs (goods, services, ideas)


-form utility: value producers add to materials in the creation of finished goods and services


-process manufacturing: part of production that physically or chemically changes materials


Procution -


Assembly Process (2 parts)



-1 Continuous process: long production runs turn out finished goods over time


-2 Intermittent Process: production runs are short and the producer adjusts machines frequently to make different products


Production Developments which make US companies more competitive


- 4 parts


1 -CAD: Computer-aided design


2 -CAM: Computer aided manufacturing


3 -Lean Manufacturing


4 - Mass customization



1 -CAD: Computer-aided design


2 -CAM: Computer aided manufacturing


3 -Lean Manufacturing


4 - Mass customization



1. CAD: use of computers in the design of products


2. CAM: use of computers in the manufacturing of products


3. Lean Manufacturing: using less of everything than in mass production

-take half the human effort, half defects in finished products, requred one third the engineering effort, use half the floor space, and carry 90% less inventory


4. Mass Customization: tailoring products to meet the needs of a large number of individual customers

-more manufacturers are learning to customize - exist in the service sector too


Operations Management


- operation management


- facility location


- Operations management: planning helps solve problems like facility location, facility layout, materials requirement planning, purchasing, inventory control, and quality control


-facility location: process of selecting a geographic location for a company's operations




-operations management on the internet - sometimes businesses outsource engineering design and manufacturing to other companies (often these relationships are managed through the internet)

-(telecommuting: working from home via computer and modem)


Operation Management


-Facility Layout


(Assembly line layout)

(Modular layout)

(Fixed position layout)

(process layout)


-Facility Layout: physical arrangement of resources, including people, to most efficiently produce goods and provide services

-depends on process performed: Service: help customers find products | Manufacturing: improve efficiency


-Assembly: workers do only a few tasks at a time


-Modular: teams of workers produce more complex units of the final product


-Fixed position: allows workers to congregate around the product (building a house would mean everyone comes to the house site to built it - architect, painting contractor, finish carpentry, plastic contractor, electric contractor, etc)


-Process layout: similar equipment and functions are grouped together


Operation Management Control






- Purchasing





-MRP: Materials requirement planning: computer based operations management system that uses sales forecasts to make sure parts and materials are available when needed


-ERP: Enterprise Resource planning: new version of MRP, combines computerized functions into a single integrated software program using a single database


-Purchasing: function that searches for high quality material resources, finds the best suppliers and negotiaties the best price for goods and servies (internet has transofrmed purchasing)


- JIT: Just in Time Inventory Control: process in which a minimum of inventory is kept and parts, suppliers and other needs are delivered just in time to go on the assembly line



Operations Management


-Quality Control


(Six sigma quality)


(statistical quality control)


(Statistical process control)


(ISO 9000, and 14000)


- Quality Control: consistently producing what the customer wants while reducing errors before and after delivery


(Six sigma quality) - quality measure that allows only 3.4 defects per million opportunities


(statistical quality control) -process used to continually monitor all phases of the production process


(Statistical process control) - process testing statistical samples of product components at each stage of production (during process = less needed at end)


(ISO 9000, and 14000) - ISO: international organization for standardization; 9000- common name to quality management and assurance standards; 14000- best practices for managing an organization's impact on enviornment


(Operations) Project Management




-Critical path


-Gantt Chart


-PERT: Program Evaluation and Review Technique: a method for analyzing the tasks involved in completeing a given project and estimating the time needed


-Critical Path: sequence of tasks that takes the longest time to complete


-Gantt Chart: bar graph that shows what projects are being worked on and how much has been completed

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