Producing Goods and Services Study Guide

Vocabulary flashcards derived from the Producing Goods and Services Study Guide focusing on key concepts and terms in operations and supply chain management.

Operations

Focus on the make/build portion of the supply chain, concentrating on the production of goods and services to fulfill customer requirements.

Production

The transformation of inputs into outputs that customers demand.

Supply Chain Management (SCM)

The management of the flow of goods and services, including all processes that transform raw materials into final products.

Form Utility

The economic utility created by manufacturing or service production that meets customer needs.

Economies of Scale

Cost advantages that a business obtains due to the scale of operation, with cost per unit of output generally decreasing with increasing scale.

Economies of Scope

Cost advantages that arise from a broader range of products made under one roof, allowing for shared resources.

Lean Production

An integrated system designed to minimize waste in all forms and maximize productivity by producing quality products.

Pull-based System

A production approach where actions are based on customer demand rather than forecasts.

Flexible Manufacturing

A production strategy that allows for the efficient production of a variety of products to adapt to changes in demand.

Outsourcing

The practice of obtaining goods or services from an outside or foreign supplier, often to reduce costs.

Adaptive Manufacturing

A strategy designed to allow companies to execute production processes based on real-time demand.

Capacity Planning

The process of determining the production capacity needed to meet changing demands for products.

Make-to-Stock (MTS)

A traditional production method where products are made in advance and stocked until an order is received.

Assemble-to-Order (ATO)

A production approach that starts assembling products after receiving a customer order.

Build-to-Order (BTO)

A manufacturing approach that delays assembly until a confirmed order is received.

Engineer-to-Order (ETO)

A production strategy focused on creating highly customized products according to specific customer requirements.

Production Process Layout

The strategic arrangement of machines, storage areas, and other resources within a manufacturing or assembly facility.

Total Cycle Time

A measure of the total time a product takes to be produced from initiation to delivery.

Key Performance Indicators (KPIs)

Measurable values that demonstrate how effectively a company is achieving key business objectives.

Manufacturing Execution System (MES)

A control system for managing and monitoring manufacturing work-in-process on the factory floor.