BA 101: Production & Operations

Vocabulary flashcards covering production and operations management concepts, manufacturing processes, facility layouts, inventory management, quality systems, project management tools, and business simulation decisions from BA 101 Class 7.

Production

Creating goods using land, labor, materials, capital, entrepreneurship, and knowledge.

Production management

Activities managers perform to help a firm create goods.

Operations management

Managing the transformation of resources into goods and services; includes scheduling, inventory, quality, and follow-up.

Operations management goals

Meet customer demand with high-quality products, efficient processes, fewer delays, and lower costs.

Inputs to production

Land, labor, materials, capital, entrepreneurship, and knowledge.

Production control steps

Planning, routing, scheduling, dispatching, and follow-up.

Outputs of operations

Goods, services, and ideas.

Process manufacturing

Physically or chemically changing materials, such as shaping plastic using heat and pressure.

Assembly process

Putting separate components together, such as assembling parts into a hot tub.

Continuous production

Long runs producing goods over time, such as a beverage bottling line producing identical bottles all day.

Intermittent production

Short runs with frequent machine adjustments to make different products or custom orders in short batches.

Supply chain

Connected suppliers, production sites, transport, and distribution steps that move materials and products.

Hot tub case study

A lecture example illustrating a supply chain requiring about $1{,}850$ parts sourced across $7$ countries and $14$ states arriving by container ship, truck, and train.

Supply-chain bottleneck

A shortage or delay at one stage that slows the rest of production or delivery.

CAD (Computer-Aided Design)

Computer software used to design products, including accurate $2\text{D}$ and $3\text{D}$ drawings.

CAM (Computer-Aided Manufacturing)

Computers used to control or support the manufacturing of products.

CAD versus CAM

CAD designs the product, whereas CAM helps manufacture it.

CIM (Computer-Integrated Manufacturing)

The integration of CAD and CAM; it is costly but can sharply reduce machine-programming time.

Flexible manufacturing

Designing machines to switch tasks or make different products with relatively quick adjustments.

Mass customization

Making products at scale while tailoring selected features to individual customers, such as customizing shoe colors while the underlying shoe design stays standardized.

Robotics benefits

Can operate around the clock, perform repetitive work, lower labor costs, and improve consistency in manufacturing.

Sensors in manufacturing

Devices that detect production problems quickly so adjustments or changes can be made.

Nanomanufacturing

Manipulating materials at the molecular level.

Facility location

Choosing where operations occur, taking into account costs, labor, suppliers, and logistics.

Outsourcing

Using outside companies to perform work or supply goods or services.

Remote work

Performing work away from the workplace using computers and communication technology.

Facility layout

The physical arrangement of workers, equipment, and resources for efficient production or service.

Assembly-line layout

A layout where workers or stations each perform a small number of repeated tasks as products move along.

Modular layout

A layout where teams or work cells produce more complex units of the final product.

Fixed-position layout

A layout where the product stays in one place while workers and equipment come to it, such as when building an aircraft or a large ship.

Purchasing

Finding high-quality materials and suppliers and negotiating favorable prices.

Inventory control

Managing how much material or stock is held and when to replenish it.

JIT (Just-in-Time) inventory

An inventory strategy of keeping minimal inventory and receiving parts right when needed for production.

JIT requirement and risk

Requires excellent supplier coordination and reliable delivery timing; carries the risk that a delayed shipment can halt production because little backup inventory is stored.

ERP (Enterprise Resource Planning)

Integrated software for coordinating business information and resources across departments.

Materials requirements planning

Determining what materials are needed, how much, and when for planned production.

Quality control

Ensuring products consistently meet customer needs and reducing errors.

Six Sigma quality

A quality benchmark of $3.4$ defects per million opportunities.

Lean manufacturing

Producing with fewer resources and less waste (requiring less inventory, less floor space, less effort, and fewer defects) while maintaining customer value.

PERT (Program Evaluation and Review Technique)

A method that plans project tasks and estimates completion time by sequencing dependent tasks and mapping project networks.

PERT steps

List and sequence tasks, estimate task times, draw network, and identify critical path.

Critical path

The longest sequence of dependent tasks in a project, which determines the shortest possible project completion time.

Gantt chart

A bar chart showing project tasks, timelines, and completion progress by calendar dates.

PERT versus Gantt

PERT emphasizes task dependencies and the critical path, whereas a Gantt chart displays tasks on a timeline.

Mike’s Bikes: sales forecast and inventory planning

Estimating units likely to sell before deciding production, and comparing projected demand with existing stock to avoid overproduction or shortages.

Supplier oversight

The responsibility of operations managers to purchase parts, supervise suppliers, and try to prevent delays.