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Assembly Process

Puts together components to make a product

Computer-Aided Design (CAD)

Uses computers to help design products. CAD has
increased productivity in many firms

Computer-Aided Manufacturing

Involves computers directly in the production

Computer-Integrated Manufacturing (CIM)

Sophisticated software that enables
computer-aided design machines to communicate with computer-aided manufacturing

Continuous Process

A production process characterized by long production runs to
turn out finished goods over time

Enterprise Resource Planning (ERP)

A computer application that enables multiple
firms to manage all of their operations on the basis of a single, integrated set of
corporate data

Facility Layout

The physical arrangement of resources in the production process.
For services, the facility layout is usually designed to help customers find and buy

Facility Location

The process of selecting a geographic location for a company's
operations. In an evaluation of an area as a possible site for a facility location,
quality-of-life considerations would include factors such as crime rates and quality
of schools. Firms that have a goal of reducing time to market tend to locate facilities
near major highways, ports, rail lines and airports.

Flexible Manufacturing

Machines are designed to do multiple tasks so that they can
produce a variety of products

Form Utility

The value added by the creation of finished goods and services using
raw materials, components, and other inputs

Intermittent Process

A production process characterized by a short production run
and frequent adjustments to machines so that different products can be produced

ISO 9000

A set of standards for quality management and quality assurance

ISO 14000

Standards concerned with the best practices for managing an
organization's environmental impacts

Just-In-Time (JIT) Inventory Control

A just-in-time inventory system usually reduces
costs for the producer, but not its suppliers

Lean Manufacturing

The goal of lean manufacturing is to produce goods and services
with less of everything compared to mass production

Mass Customization

Means tailoring products to meet the needs of a large number
of individual customers

Mass Production

The whole idea behind mass production was to make large
quantities of a limited variety of products at very low cost

Materials Requirement Planning (MRP)

A technique that helps managers make sure
that the right parts and materials are available at the right time. MRP results are based
on information provided by sales forecasts

Operations Management

A specialized area in management that converts resources
into both goods and services. It is the implementation phase of management.
Operations management in the service industry is all about creating a good
experience for those who use the service.

Process Manufacturing

Materials are physically or chemically changed to produce a


The creation of goods and services using land, labor, capital,
entrepreneurship, and knowledge. Production creates form utility.

Production Management

The traditional term used to describe all the activities
managers do to help their firms create goods

Program Evaluation and Review Technique (PERT)

A technique to analyze the tasks
involved in completing a project, to estimate the time needed to complete each task,
and to determine the minimum amount of time needed to complete each project. In a
PERT network, the sequence of tasks that takes the longest to complete is called the
Critical Path.

Six Sigma Quality

The six sigma approach to quality control detects potential
problems to prevent their occurrence

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