MIE chapter 8

Operations Management (OM)

Managing the process of turning resources into products or services

Manufacturing/production

The process of making physical products (tangible)

operations

the activities and processes used in making both goods and services (tangible + intangible)

Inputs

The resources a business uses to create a product or services like workers (labor), money, materials, and energy

Products

Goods, services, or ideas that give customers benefits or satisfaction

Standardization

Making products or parts exactly the same

Modular Design

Making a product from separate parts (modules) that can be combined or swapped

Customization

Making a product specifically for a customer’s wants or needs

capacity

The maximum amount of work a business or operation can handle

fixed-position layout

The product stays in one place, and workers, materials, and equipment come to it

Project Organization

A company that works on large, complex projects where the product stays in one place.

Process Layout

Groups similar types of work or equipment into departments Example: Hospital — X-rays in one area, surgery in another.

Intermittent Organization

Makes different or customized products, usually in smaller amounts. Remember: Different products, smaller quantities.

Product Layout

Workers and machines are arranged in order along an assembly line.

Remember: Product moves down the line.
Example: Car factory

Continuous Manufacturing Organization

Uses continuously running production lines to make large amounts of similar products

Computer-Assisted Design (CAD)

Using computers to design products

Remember: CAD = computer designs it.

Computer-Assisted Manufacturing (CAM)

Using computers to control the actual manufacturing process

Remember: CAM = computer makes it.

Flexible Manufacturing

Using computers to quickly adjust machines to make different versions of products

Remember: Machines can adapt/change.

Computer-Integrated Manufacturing (CIM)

A computer system that connects and controls the entire manufacturing process

Remember: CIM = computer controls everything.

Supply Chain Management

Managing and connecting everyone involved in getting a product to the customer

Remember: Supplier → business → customer.

Purchasing

Buying the materials and supplies a business needs.

Inventory

All the materials, unfinished goods, and finished goods a business has

Inventory Control

Tracking how much inventory a business needs, has, and where it is

Economic Order Quantity (EOQ)

The best amount of inventory to order to keep total inventory costs as low as possible.

Just-in-Time (JIT) Inventory

Having materials arrive right when they're needed instead of storing them

Material-Requirements Planning (MRP)

Planning exactly how much material is needed and when it's needed for production

Routing

The order of steps a product goes through during production

Remember: Routing = WHERE/what order the product goes

Scheduling

Deciding when tasks will be done and who or what will do them

Remember: Scheduling = WHEN + WHO.

Quality Control

Making sure products meet the company's quality standards.

Remember: Quality control = check the quality.

Total Quality Management (TQM)

Making quality everyone's responsibility throughout the entire organization.

Remember: TQM = EVERYONE focuses on quality

Statistical Process Control

Using production data to find and prevent quality problems.

Remember: Use data to catch quality problems

ISO 9000

International standards for consistent product quality

Remember: 9000 = QUALITY

ISO 14000

International standards for environmental management.

ISO 14000 = ENVIRONMENT

ISO 19600

Guidelines for helping businesses follow laws, rules, and compliance requirements

Remember: 19600 = COMPLIANCE