Chapter 8 Flashcards
All activities required to produce goods and services
Operational management
A situation in which U.S. manufacturers bring jobs back to the U.S.
Reshoring
Primary reasons for reshoring
Increasing labor cost Shipping cost Quality/safety issues Faster product development Federal and stat subsidies
Aanufacturing process that lowers the cost required to produce a large number of identical or similar product over a long period of time
Mass production.
A process in operations management in which raw materials are broken down into different components
Analytical process
Process in operations management in which raw materials are combined to creat a finished product
Synthetic process
The ability of a good or service to satisfy a human need
Utility
Four types of utility
Form
Place
Time
Possession
Utility created by people converting raw materials/ resources into finished products
Form utility
More effort is devoted to producing services than goods
Service economy
The development of a plan for converting an idea into an actual good or service
Design planning
A group of similar products that differ only in minor characteristics
Product line
The process of creating a set of specifications from which a product can be produced
Product design
The amount of products or services that an organization can produce in a given time
Capacity
A process in which people do most of the work
Labor intensive technology
A process in which machines and equipment do most of the work
Capitol intensive technology
The arrangement of machinery and personnel within a production facility
Plant layout
The period during which an operational plan will be in effect
Planning horizon
All activities involved in obtaining required materials supplies from other firms
Purchasing
The process of merging inventories in such a way as to minimize inventory cost including holding cost and stock out cost
Inventory control
MRP
Materials requirements planning
Materials requirements planning (MRP)
Computer system the integrates production planning and inventory control
Computer system that integrates production planning and inventory control
MRP
Materials requirements planning
Designed to insure that materials arrive just when they are needed to minimize storage and holding costs
Just-in-time inventory system
