Chapter 15 Global Production Methods

Production Process

Means by which a company transforms raw materials into finished goods.

Just-In-Time Inventory Control

A system that allows companies to respond quickly to changes in the marketplace.

Productivity

The amount of work that can be accomplished in a unit of time.

Transformation

The use of resources to create a good or service.

Capital Resources

Funds and materials necessary to produce a good or service.

Automated Production Systems

Machines that perform work quickly and precisely, replacing some human jobs.

Computer-Assisted Manufacturing (CAM)

Utilizes computers to run production equipment.

Computer-Integrated Manufacturing (CIM)

A system where computers guide the entire manufacturing process.

Total Quality Control (TQC)

A quality management approach where every employee takes responsibility for high-quality production.

Quality Circle

A small group of employees with different jobs but a shared goal of producing quality goods or services.

Outsourcing

The transfer of a business function outside of the company.

Service Industry

Sector of the economy that provides services rather than goods.

Human Resources

The people and their physical and intellectual abilities in an organization.

Natural Resources

Resources from the environment used to create goods.

Synchronized Manufacturing

Monitoring workflow and distributing it as needed throughout the production cycle.

Tailored Logistics

Combining services with a product to better meet consumer needs.

Cross-Functional Team

A team with members from different parts of an organization.

Automated Warehouse

A system that uses computers and robots to manage inventory and distribution.

Feedback from Consumers

Information received after the output stage to assess product quality and satisfaction.

Challenges Facing Developing Countries

Issues such as lack of technology, finance, and education preventing advanced production methods.