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25 terms

Business in Action Ch 9

STUDY
PLAY
system
An interconnected and coordinated set of elements and processes that converts inputs to desired outputs
value chain
All the elements and processes that add value as raw materials are transformed into the final products made available to the ultimate customer
outsourcing
Contracting out certain business functions or operations to othe companies
value web
Multidimensional networks of suppliers and outsourcing partners
offshoring
Transferring part or all of a business function to a facility (a different part of the company or another company entirely) in another country
supply chain
A set of connected systems that coordinates the flow of goods and materials from suppliers all the way through to final customers
supply chain management (SCM)
The business procedures, policies, and computer systems that integrate the various elements of the supply chain into a cohesive system
inventory control
Determining the right quantites of supplies and products to have on hand and tracking where those items are
procurement
The acquisition of the raw materials, parts, components, supplies, and finished products required to produce goods and services
production and operations management
Overseeing all the activities involved in producing goods and services
capacity planning
Establishing the overall level of resources needed to meet customer demand
critical path
In the PERT network diagram, the sequence of operations that requires the longest time to complete
productivity
The efficiency with which an organization can convert inputs to outputs
lean systems
Manufacturing systems that maximize productivity by reducing waste and delays
just-in-time (JIT)
Inventory management in which goods and materials are delivered throughout the production process right before they are needed
mass production
The creation of identical goods or services, usually in large quantities
customized production
The creation of a unique good or service for each customer
mas customization
Manufacturing approach in which part of the product is mass produced and the remaining features are customized for each buyer
scalability
The potential to increase production by expanding or replicating its initial production capacity
quality control
Measuring quality against established standards after the good or service has been produced and weeding out any defective products
quality assurance
A more comprehensive approach of companywide policies, practices, and procedures to ensure that every product meets quality standards
statistical process control (SPC)
Use of random sampling and control charts to monitor the production process
total quality management (TQM)
A management philosophy and strategic management process that focuses on delivering the optimal level of quality to customers by building quality into every organizational activity
Six Sigma
A rigorous quality management program that strives to eliminate deviations between the actual and desired performance of a business system
inventory
Goods and materials kept in stock for production or sale