Week 15 Chapter 17 Operations Management: Putting It All Together

Operations management

Creating value by managing the activities that produce goods and services and then distributing them to customers. [cite

efficiency

Producing output or achieving a goal at the lowest cost. [cite

Effectiveness

Using resources to create value by providing customers with goods and services that offer a better relationship between price and perceived benefits. [cite

Inventories

Stocks of goods or other items held by organizations. [cite

Goods

Tangible products. [cite

process

A set of related activities that transform inputs into outputs, thus adding value. [cite

Services

Intangible products. [cite

critical path method (CPM)

A project-management tool that illustrates the relationships among all the activities involved in completing a project and identifies the sequence of activities likely to take the longest to complete. [cite

value chain

The network of relationships that channels the flow of inputs, information, and financial resources through all of the processes directly or indirectly involved in producing goods and services and distributing them to customers. [cite

critical path

The sequence of activities in a project that is expected to take the longest to complete. [cite

Vertical integration

Performance of processes internally that were previously performed by other organizations in a supply chain. [cite

immediate predecessors

Activities in a project that must be completed before some other specified activity can begin. [cite

Outsourcing

Arranging for other organizations to perform supply chain functions that were previously performed internally. [cite

enterprise resource planning (ERP)

Software-based approach to integrate an organization's (and in the sophisticated versions, a value chain's) information flows. [cite

Offshoring

Moving production or support processes to foreign countries. [cite

servicescape

The environment in which a customer and service provider interact. [cite

Computer-aided design (CAD)

Drawing and drafting software that enables users to create and edit blueprints and design drawings quickly and easily. [cite

automation

Replacing human operation and control of machinery and equipment with some form of programmed control. [cite

robots

A reprogrammable machine that is capable of manipulating materials, tools, parts, and specialized devices in order to perform a variety of tasks. [cite

Computer-aided engineering (CAE)

Software that enables users to test, analyze, and optimize their designs. [cite

CAD/CAM

A combination of software that can be used to design output and send instructions to automated equipment to perform the steps needed to produce this output. [cite

computer-aided manufacturing

Software that takes the electronic design for a product and creates the programmed instructions that robots must follow to produce that product as efficiently as possible. [cite

Computer-aided manufacturing (CAM)

Software that takes the electronic design for a product and creates the programmed instructions that robots must follow to produce that product as efficiently as possible. [cite

computer-aided design

Drawing and drafting software that enables users to create and edit blueprints and design drawings quickly and easily. [cite

computer-integrated manufacturing (CIM)

A combination of CAD/CAM software with flexible manufacturing systems to automate almost all steps involved in designing, testing, and producing a product. [cite

Six Sigma

An approach to quality improvement characterized by very ambitious quality goals, extensive training of employees, and a long-term commitment to working on quality-related issues. [cite

Baldrige National Quality Program

A national program to encourage American firms to focus on quality improvement. [cite

total quality management (TQM)

An approach to quality improvement that calls for everyone within an organization to take responsibility for improving quality and emphasizes the need for a long-term commitment to continuous improvement. [cite

poka-yokes

Simple methods incorporated into a production process designed to eliminate or greatly reduce errors. [cite

ISO 9000

A family of generic standards for quality management systems established by the International Organization for Standardization. [cite

ISO 14000

A family of generic standards for environmental management established by the International Organization for Standardization. [cite

inventory

Stocks of goods or other items held by organizations. [cite

just-in-time (JIT) production

A production system that emphasizes the production of goods to meet actual current demand, thus minimizing the need to hold inventories of finished goods and work in process at each stage of the supply chain. [cite

Lean production

An approach to production that emphasizes the elimination of waste in all aspects of production processes. [cite

robot

A reprogrammable machine that is capable of manipulating materials, tools, parts, and specialized devices in order to perform a variety of tasks. [cite

computer-aided design/computer-aided manufacturing (CAD/CAM)

A combination of software that can be used to design output and send instructions to automated equipment to perform the steps needed to produce this output. [cite