Business Chapter 10 - Production and Operations Management

Bill of Material (BOM)

A list of the items and the number of each required to make a given product.

MRP

Material requirements planning

Is a system used to plan and manage the inventory and resources needed to manufacture products.

ERP

Enterprise resource planning

The use of an integrated software system to streamline and optimize the flow of goods, information, and finances throughout a company's supply chain.

Inventory

The supply of goods that a firm holds for use in production or for sale to customers.

Total Quality Management

A comprehensive, organization-wide approach to improving and maintaining quality in all aspects of business operations.

Six Sigma

Company-wide process that focuses on measuring the number of defects that occur and systematically eliminating them in order to get as close to "zero defects" as possible.

ISO 9000 standards

A set of five technical standards designed to offer a uniform way of determining whether manufacturing plants and service organizations conform to sound quality procedures.

Lean Manufacturing

Streamlines production by eliminating steps in the production process that do not add benefits or value to the customer.

Just-in-Time

• A system in which materials arrive exactly when they are needed for production, rather than being stored on-site.

• Focus is producing according to demand at each step in the production process.

• Elimination of wasteful inventory or production activity.

Mass production

The manufacture of many identical goods at once.

Mass customization

A manufacturing process in which goods are mass-produced up to a point and then custom-tailored to the needs or desires of individual customers.

Customization

The production of goods or services one at a time according to the specific needs or wants of individual customers.

Quality

Goods and services that meet customer expectations by providing reliable performance.

Quality Control

The process of creating quality standards, producing goods that meet them, and measuring finished goods and services against them.

Routing

A workflow for the sequence of machines and operations through which a product or service progresses from start to finish.

Scheduling

Specifying and controlling the time required for each step in the production process

Critical Path Method

A project management technique used to identify and analyze the most critical tasks in a project that directly impact the overall timeline.

Gannt Charts

A bar chart used in project management to visually represent a project's timeline, tasks, and milestones.

Supply Chain Management

Optimizing the entire process of bringing a product to market, from sourcing raw materials to delivering the finished product to the customer.

Bull Whip Effect

A supply chain phenomenon where small fluctuations in demand at the retail level amplify as they move upstream to wholesale, distribution, manufacturing, and raw material suppliers.

CAD

Computer-Aided Design

software allows designers to create 2D or 3D models of products, visualize concepts, and simulate how they will function.

CAM

Computer-Aided Manufacturing

focuses on automating the manufacturing process, including CNC machining, 3D printing, and laser cutting.

CIM

Computer-Integrated Manufacturing

integrates all aspects of manufacturing, including design, planning, production, and quality control