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Chapter 8: Managing Service and Manufacturing Operations
Terms in this set (39)
Operations Management (OM)
The development and administration of the activities involved in transforming resources into goods and services
The activities and processes used in making both tangible and intangible products
The making of identical interchangeable components or products
The maximum load that an organizational unit can carry or operate
A layout that organizes the transformation process into departments that group related processes
Continuous Manufacturing Organizations
Companies that use continuously running assembly lines, creating products with many similar characteristics
The direction of machinery by computers to adapt to different versions of similar operations
The buying of all the materials needed by the organization; also called procurement
Economic Order Quantity (EOQ) Model
A model that identifies the optimum number of items to order to minimize the costs of managing (ordering, storing, and using) them
The sequence of operations through which the product must pass
Total Quality Management (TQM)
A philosophy that uniform commitment to quality in all areas of an organization will promote a culture that meets customers' perceptions of quality
A comprehensive set of environmental standards that encourages companies to conduct business in a cleaner, safer, and less wasteful way; provides a uniform set of standards globally
The activities and processes used tin making tangible products; also called production
The resources - such as labor, money, materials, and energy - that are converted into outputs
The creation of an item in self-contained units, or modules, that can be combined or interchanged to create different products
A layout that brings all resources required to create the product to a central location
Organizations that deal with products of a lesser magnitude than do project organizations; their products are not necessarily unique but possess a significant number of differences
Computer-assisted Design (CAD)
The design of components, products, and processes on computers instead of on paper
Computer-integrated Manufacturing (CIM)
A complete system that designs products, manages machines and materials, and controls the operations function
All raw materials, components, completed or partially completed products, and pieces of equipment a firm uses
Just-in-Time (JIT) Inventory Management
A technique using smaller quantities of materials that arrive "just in time" for use in the transformation process and therefore require less storage space and other inventory management expense
The assignment of required tasks to departments or even specific machines, workers, or teams
Statistical Process Control
A system in which management collects and analyzes information about the production process to pinpoint quality problems in the production system
The activities and processes used in making tangible products; also called manufacturing
The goods, services, and ideas that result from the conversion of inputs
Making products to meet a particular customer's needs or wants
A company using a fixed-position layout because it is typically involved in large, complex projects such as construction or exploration
A layout requiring that production be broken down into relatively simple tasks assigned to workers, who are usually positioned along an assembly line
Computer-assisted Manufacturing (CAM)
Manufacturing that employs specialized computer systems to actually guide and control the transformation processes
Supply Chain Management
Connecting and integrating all parties or members of the distribution system in order to satisfy customers
The process of determining how many supplies and goods are needed and keeping track of quantities on hand, where each item is, and who is responsible for it
Material-Requirements Planning (MRP)
A planning system that schedules the precise quantity of materials needed to make the product
The processes an organization uses to maintain its established quality standards
A series of quality assurance standards designed by the International Organization for Standardization (ISO) to ensure consistent product quality under many conditions
Define operations management.
The development and administration of the activities involved in transforming resources into goods and services, is of critical importance. Operations managers oversee the transformation process and the planning and designing of operations systems, managing logistics, quality, and productivity. OM is the "core" of most organizations because it is responsible for the creation of the organization's goods an services
Define supply chain management and summarize the activities it involves.
Supply chain management refers to connecting and integrating all parties or members of the distribution system in order to satisfy customers. It includes all the activities involved in obtaining and managing raw materials and component parts, managing finished products packaging them, and getting them to customers. Its primary activities include purchasing, managing inventory, and scheduling.
What criteria do businesses use when deciding where to locate a plant?
Proximity to market; availability of raw materials; availability of transportation; availability of power; climatic influences; availability of labor; community characteristics; taxes and inducements
In what industry would the fixed-position layout be most efficient? The process layout? The product layout? Use real examples.
A fixed-position layout uses a central location for the basic product, and all resources required to create the product are moved to the at location. A bridge under construction would be one example of a fixed-position layout. The process or functional layout organizes the transformation process into departments according to the type of work to be done. These organizations are known as intermittent organizations and deal with products of lesser magnitude that product organizations. They are able to create a product to a customers' specifications and produce relatively few units of each product. A factory that engages in printing activities would be one example of process or functional layout. A product or line layout requires that the work of creating a product be broken down into activities or tasks requiring relatively short periods of time and be assigned to workers positioned along the line. The product move from one worker to another and each one in turn performs the required tasks or activities. Organizations using this layout are known as continuous manufacturing organizations because once they are set up they run continuously, creating products with many similar characteristics. A company that makes plastic components would be on example of a product or line layout.
Compare and contrast a manufacturer versus a service provider in terms of operations management.
Manufacturers and service providers both must schedule and control operations as well as allocate necessary resources. However, though manufacturers and service providers often perform similar activities, they differ in the following five basic ways: nature and consumption of outputs, uniformity of inputs, uniformity of outputs, labor requirements, and measurement of productivity.
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