Chapter 15 Flashcards
(54 cards)
production
the creation of products and services by turning inputs, such as natural resources, raw materials, human resources, and capital, into outputs, which are products and services
operations management
management of the production process
production planning
the aspect of operations management in which the company considers its resources and its own strategic goals in an effort to determine the best production methods
production process
the way in which a good is made
mass production
the ability to manufacture 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
job shop
a manufacturing company that produces goods in response to customer orders
process manufacturing
a production process in which the basic input is broken down into one or more outputs (products)
assembly process
a production process in which the basic inputs are either combined to create the output or transformed into the output
continuous process
a production process that uses long production runs lasting days, weeks, or months without equipment shut-downs; generally used for high-volume, low-variety products with standardized parts
intermittent process
a production process that uses short production runs to make batches of different products; generally used for low-volume, high-variety products
process layout
a facility arrangement in which work flows according to the production process. All workers performing similar tasks are grouped together, and products pass from one workstation to another
product (assembly line) layout
a facility arrangement in which workstations or departments are arranged in a line with products moving along the line
fixed-position layout
a facility arrangement in which the product stays in one place and workers and machinery move to it as needed
cellular manufacturing
production technique that uses small, self-contained production units, each performing all or most of the tasks necessary to complete a manufacturing order
bill of material
a list of the items and the number of each required to make a given product
purchasing
the process of buying production inputs from various sources; also called procurement
make-or-buy decision
the determination by a company of whether to make its production materials or to buy them from outside sources
outsourcing
the purchase of items from an outside source rather than making them internally
inventory
the supply of goods that a company holds for use in production or for sale to customers
inventory management
the determination of how much of each type of inventory a company will keep on hand and the ordering, receiving, storing, and tracking of inventory
perpetual inventory
a continuously updated list of inventory levels, orders, sales, and receipts
materials requirement planning (MRP)
a computerized system of controlling the flow of resources and inventory, A master schedule is used to ensure that the materials, labour, and equipment needed for production are at the right places in the right amounts at the right times
