that part of production process that puts together components
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computer-aided design (CAD)
the use of computers in the design of products
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computer-aided manufacturing (CAM)
the use of computers in the manufacturing of products
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computer-integrated manufacturing (CIM)
the uniting of computer-aided design with computer-aided manufacturing
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continuous process
a production process in which long production runs turn out finished goods over time
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critical path
in a PERT network, the sequence of tasks that takes the longest time to complete
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enterprise resource planning (ERP)
a newer version of materials requirement planning (MRP) that combines the computerized functions of all the divisions and subsidiaries of the firm - such as finance, human resources, and order fulfillment - into a single integrated software program that uses a single database
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facility layout
the physical arrangement of resources (including people) in the production process
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facility location
the process of selecting a geographic location for a company's operations
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flexible manufacturing
designing machines to do multiple tasks so they can produce a variety of products
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form utility
the value producers add to materials in the creation of finished goods and services
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Gantt chart
bar graph showing production managers what projects are being worked on and what stage they are in at any given time
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intermittent process
a production process in which the production run is short and the machines are changed frequently to make different products
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ISO 9001
the common name given to quality management and assurance standards
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ISO 14001
a collection of the best practices for managing an organization's impact on the environment
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just-in-time (JIT) inventory control
a production process in which a minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered just in time to go on the assembly line
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lean manufacturing
the production of goods using less of everything compared to mass production
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mass customization
tailoring products to meet the needs of a large number of individual customers
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materials requirement planning (MRP)
a computer-based operations management system that uses sales forecasts to make sure that need parts and materials are available at the right time and place
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operations management
a specialized area in management that converts or transforms resources (including human resources) into goods and services
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process manufacturing
that part of the production process that physically or chemically changes materials
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production
the creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge
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production management
the term used to describe all the activities managers do to help their firms create goods
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program evaluation and review technique (PERT)
a method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project
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purchasing
the function in a firm that searches for quality material resources, finds the best suppliers, and negotiates the best price for goods and services
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quality
consistently producing what the customer wants while reducing errors before and after delivery to the customer
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Six Sigma quality
a quality measure that allows only 3.4 defects per million opportunities
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statistical process control (SPC)
the process of taking statistical samples of products components at each stage of the production process and plotting those results on a graph. Any variances from quality standards are recognized and can be corrected if beyond set standards
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