Chapter 6: Producing Goods and Services

These flashcards cover key vocabulary related to production goods and services in supply chain management, focusing on operations strategy, metrics, and technology.

Production Operations

The processes and activities involved in the production of goods and services within a supply chain.

Economies of Scale

Higher-volume production that reduces the cost per unit due to high fixed costs and efficient use of equipment.

Economies of Scope

Low-volume production with the flexibility to produce a variety of products, catering to changing customer demand.

Centralized Production

A production strategy where facilities are located in a single central location, providing operational efficiency.

Responsive Production Facilities

Production facilities designed to be closer to customers, allowing faster response times.

Make-to-Stock (MTS)

A production strategy where goods are produced in advance and stored for later sale.

Build-to-Order (BTO)

A production approach where products are assembled only after an order is received.

Lean Manufacturing

A production strategy focused on waste reduction while maintaining productivity.

Smart Manufacturing

Utilization of technology and data analytics to enhance manufacturing processes and increase production efficiency.

Assemble-to-Order (ATO)

A production strategy where products are assembled from pre-manufactured components after an order is placed.

Manufacturing Execution System (MES)

Technology that connects, monitors, and controls complex manufacturing systems and data flows on the factory floor.

Production Metrics

Key performance indicators used to assess various aspects of the production process, such as efficiency and quality.

Production Tradeoffs

Decisions made that involve compromises between conflicting objectives in production, such as volume vs. variety.

Manufacturing Process Layout

The arrangement of resources and spaces in a manufacturing facility to enhance workflow and efficiency.

Flexible Manufacturing

A production system capable of adapting to changes in the type and quantity of products being produced.