Operations Management and Quality (Chapter 7) - Vocabulary Flashcards

A set of vocabulary flashcards covering key terms and definitions from Chapter 7: Operations Management and Quality.

Operations (Production)

The systematic direction and control of activities that transform resources into finished products that create value for customers.

Service Operations

Activities producing intangible and tangible products, such as entertainment, transportation, and education.

Goods Operations

Activities producing tangible products, such as radios, newspapers, buses, and textbooks.

Resource Transformation Process

Plan, organize, schedule, and control the transformation of inputs into outputs (goods/services) that satisfy customers.

Inputs

Knowledge, information, equipment, the customer, and human skills used to start the transformation process.

Transformation Activities

Processing information and data, converting raw materials, solving problems for clients, delivering goods and services.

Outputs

Goods and services that satisfy customer needs and wants.

Make-to-Order

Activities for one-of-a-kind or custom-made production.

Make-to-Stock

Activities for producing standardized products for mass consumption.

Low-Contact System

Customer does not need to be part of the system to receive the service.

High-Contact System

Customer is part of the system during service delivery.

Operations Capability

Special ability that production does especially well to outperform the competition; often multiple competencies.

Quality

The degree to which a product or service meets customer requirements and expectations.

Performance (Quality)

Dimension of quality referring to how well a product does what it is supposed to do.

Consistency (Quality)

Dimension of quality referring to sameness of quality from unit to unit.

Toyota

Quality-focused company example: high standards, JIT flow, automated equipment, and continuous improvement.

Save-A-Lot

Low-cost strategy: minimal overhead, limited product assortment, many small stores to reduce costs.

3M

Flexibility: production capable of changing quickly, with adaptable equipment and diverse facilities.

FedEx

Dependability: reliable delivery, tracking, and robust logistics capabilities.

Lean Production System

System designed for smooth production flows, eliminating waste, reducing inventories, and continuous improvement.

Just-in-Time (JIT) Production

Lean system that brings materials to production exactly when needed.

Capacity Planning

Determining the amount of product a company can produce under normal conditions.

Location Planning

Deciding where production will occur based on costs and flexibility.

Layout Planning

Planning the physical arrangement of machinery, equipment, and supplies.

Process Layout (Functional Layout)

Physical arrangement that groups equipment and people by function.

Product Layout (Same-Steps Layout)

Physical arrangement designed to make one type of product in a fixed sequence of steps.

Assembly Line Layout

Same-steps layout with a product moving step by step along a line.

Fixed-Position Layout

Product remains in one location; labor, equipment, and materials are brought to it.

Master Schedule

The game plan for upcoming production.

Gantt Chart

A production schedule tool that breaks a project into tasks and shows time requirements.

PERT Chart

A network chart showing task sequence, time estimates, and the critical path.

Supplier Selection

Process of finding and choosing suppliers.

Purchasing

Acquisition of materials and services needed.

Transportation

Movement of resources to the plant and finished goods to customers.

Warehousing

Storage of incoming materials and finished goods.

Inventory Control

Receiving, storing, handling, and counting of all materials and finished goods.

ISO 9000

Certification program confirming a quality management system meets ISO standards.

ISO 14000

Certification program attesting to environmental performance improvements.

Supply Chain

Flow of information, materials, and services from raw-materials suppliers to the end customer.

Supply Chain Management

Managing the entire supply chain as a system to improve overall flow and performance.