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Operations Management
Exam 1 - Chapter 3
40
Management
Undergraduate 3
02/23/2011

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Term
Manufacturability
Definition
The ease of which a product can be made
Term
Product Design
Definition
The process of defining all of the product's characteristics
Term
Service Design
Definition
The process of establishing all the characteristics of the service, including physical, sensual, and psychological benefits
Term
Benchmarking
Definition
The process of studying the practices of companies considered "best-in-class" and comparing your company's performance against theirs
Term
Reverse Engineering
Definition
The process of disassembling a product to analyze it's design features
Term
Early Supplier Involvement (ESI)
Definition
Involving suppliers in the early stages of product design
Term
Break-even Analysis
Definition
A technique used to compute the amount of goods a company needs to sell to cover it's costs
Term
Fixed Costs
Definition
Costs a company incurs regardless of how much it produces
Term
Variable Costs
Definition
Costs that vary directly with the amount of units produced
Term
Design For Manufacture (DFM)
Definition
A series of guidelines to follow in order to produce a product easily and profitably
Term
Product Life Cycle
Definition
A series of stages that products pass through in their lifetime, characterized by changing product demands over time
Term
Concurrent Engineering
Definition
An approach that brings together multifunction teams in the early phase of product design in order to simultaneously design the product and the process
Term
Remanufacturing
Definition
The concept of using components of old products in the production of new ones
Term
Intermittent Operations
Definition
Processes used to produce a variety of products with different processing requirements in low volumes
Term
Repetitive Operations
Definition
Processes used to produce one or few standardized products in high volume
Term
Project Process
Definition
A type of process used to make a one-at-a-time product exactly to customer specifications
Term
Batch Process
Definition
A type of process used to produce a small quantity of products in groups or batches based on customer orders or specifications
Term
Line Process
Definition
A type of process used to produce a large volume of a standardized product
Term
Continuous Process
Definition
A type of process that operates continually to produce a high volume of a fully standardized product
Term
Process Flow Analysis
Definition
A technique used for evaluating a process in terms of the sequence of steps from inputs to outputs with the goal of improving its design
Term
Process Flowchart
Definition
A chart showing the sequence of steps in producing the product or service
Term
Bottleneck
Definition
Longest task in the process
Term
Make-to-stock Strategy
Definition
Produces standard products and services for immediate sale or delivery
Term
Assemble-to-order Strategy
Definition
Produces standard components that can be combined to customer specifications
Term
Make-to-order Strategy
Definition
Produces products to customer specifications after an order has been received
Term
Process Performance Metrics
Definition
Measurements of different process characteristics that tell how a process is performing
Term
Throughput Time
Definition
Average amount of time it takes a product to move through the system
Term
Process Velocity
Definition
Ratio of throughput time to value-added time
Term
Utilization
Definition
Ratio of time a resource is used to time it is available for use
Term
Efficiency
Definition
Ratio of actual output to standard output
Term
Information Technology (IT)
Definition
Technology that enables storage, processing, and communication of information within and between firms
Term
Enterprise Resource Planning (ERP)
Definition
Large software programs used for planning and coordinating all resources throughout the entire enterprise
Term
Global Positioning Systems (GPS)
Definition
A type of wireless technology that uses satellite transmission to communicate exact locations
Term
Radio Frequency Identification (REID)
Definition
A wireless technology that uses memory chips equipped with radio antennas attached to objects used to transmit streams of data
Term
Automation
Definition
Using Machinery to perform work without human operators
Term
Flexible Manufacturing Systems (FMS)
Definition
A type of automated system that combines the flexibility of intermittent operations with the efficiency of continuous operations
Term
Numerically Controlled (NC) Machine
Definition
A machine controlled by a computer that can perform a variety of tasks
Term
Computer-aided Design (CAD)
Definition
A system that uses computer graphics to design new products
Term
Computer-integrated Manufacturing (CIM)
Definition
The integration of product design, process planning, and manufacturing using an integrated computer system
Term
Service Package
Definition
A grouping a physical, sensual, and psychological benefits that are purchased together as part of the service
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