CH 9: Operations

Comprehensive vocabulary flashcards covering the manufacturing and operations management concepts from Chapter 9.

Production

The creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge.

Production management

A term used to describe all the activities managers do to help their firms create goods.

Operations management

A specialized area in management that converts or transforms resources, including human resources like technical skills and innovation, into goods and services; moves from knowing the needs of consumers to actually satisfying those needs

Connie

An AI assisted robot used by Hilton hotel to answer basic questions for guests.

Form Utility

The value producers add to materials in the creation of finished goods and services, such as transforming silicon into computer chips.

Three basic requirements of production (Andrew S. Grove)

$1$) Build and deliver products in response to customer demand at a scheduled time; $2$) provide an acceptable quality level; $3$) provide everything at the lowest possible cost.

Process manufacturing

The part of the production process that physically or chemically changes materials.

Assembly process

The part of the production process that puts together components to create a product.

Continuous process

A production process where long production runs turn out finished goods over time.

Intermittent process

A production process where the production run is short and the machines are changed frequently to make different products, often used for custom-designed orders

Computer-aided design (CAD)

The use of computers in the design of products.

Computer-aided manufacturing (CAM)

The use of computers in the manufacturing of products, including technology like $3D$ printers.

Computer-integrated manufacturing (CIM)

The uniting of computer-aided design (CAD) with computer-aided manufacturing (CAM).

Flexible manufacturing

Designing machines to do multiple tasks so they can produce a variety of products.

Lean manufacturing

The production of goods using less of everything than in mass production: less human effort, less space, less investment in tools, and less engineering time.

Mass customization

Tailoring products to meet the needs of a large number of individual customers.

Collaborative robots (cobots)

Robots that work side by side with humans to perform repetitive, dangerous, or high-precision tasks.

3D Printing (additive manufacturing)

A process where a product is created one layer at a time by a nozzle similar to those found in inkjet printers.

Nanomanufacturing

The ability to manipulate materials on a molecular or even atomic scale.

Facility location

The process of selecting a geographic location for a company’s operations.

Interfirm operations management

A process in which companies work closely together to design, produce, and ship products to customers, often involving outsourcing.

Telecommuting

Working from home via computer, providing firms and employees increased flexibility in location.

Facility layout

The physical arrangement of resources, including people, to most efficiently produce goods and provide services for customers.

Assembly-line layout

A layout where coworkers do only a few tasks at a time.

Modular layout

A layout where teams of workers combine to produce more complex units of the final product.

Fixed-position layout

A layout that allows workers to congregate around the product to be completed, such as a bridge or airplane.

Process layout

A layout where similar equipment and functions are grouped together, and the order of visits depends on the item's design.

Materials requirement planning (MRP)

A computer-based operations management system that uses sales forecasts to ensure needed parts and materials are available at the right time and place.

Enterprise resource planning (ERP)

Enterprise resource planning (ERP)

Purchasing

The function that searches for high-quality material resources, finds the best suppliers, and negotiates the best price.

Just-in-time (JIT) inventory control

A system that keeps a minimum of inventory on the premises and ensures parts and supplies are delivered just in time to go on the assembly line.

Quality

Consistently producing what the customer wants while reducing errors before and after delivery to the customer.

Six Sigma quality

A quality measure that sets a benchmark of just $3.4$ defects per million opportunities; detects potenital problems early to prevent their occurrence

Statistical quality control (SQC)

The process of continually monitoring all phases of the production process to ensure that quality is being built into the product from the beginning.

Statistical process control (SPC)

The process of testing statistical samples of product components at each stage of production and plotting results on a graph to correct deviations.

Deming Cycle

A quality control process consisting of four steps: Plan, Do, Check, Act (PDCA).

International Organization for Standardization (ISO)

A worldwide federation of national standards bodies from more than $170$ countries that set global measures for quality.

ISO 9001

The common name for quality management and assurance standards.

ISO 14001

A collection of the best practices for managing an organization’s impact on the environment.

Production Process

inputs —> production control —> outputs

inputs

land, labor, capital, entrepreneurship, knowledge

Production control

planning, routing, scheduling, dispatching, follow-up pout

outputs

goods, services, ideas

1. build & deliver products in response to the demands of the customer at a scheduled delivery time

2. provide an acceptable quality level

3. provide everything at the lowest possible cost

list out the 3 basic requirements of production

provide high quality goods & services

Goal of operation management

1. computer aided design & manufacturing

2. flexible manufacturing

3. lean manufacturing

4. mass customization

5. robotics

6. 3D printing

7 developments that made US companies more competitive

labor cost, availability of resources & labor, access to transportation, proximity to suppliers, proximity to customers, crime rates, housing stock, quality of life for employees, cost of living, the need to train or retrain the local workforce, time to market

Why do companies spend mils of dollars to move their facilities from one location to another? they consider...

plan, Do, Check, Act (PDCA)

Steps of Deming Cycle

Malcom Baldrige National Quality Awards

sets standard for overall company quality; can apply for these awards in manufacturing, services, small businesses, nonprofit/govt, education & health care