Chapter 5 – Operations Management and Quality

Assembly Line Layout
a same-steps layout in which a product moves step by step through a plant on conveyer belts or other equipment until it is completed
Business Process Reengineering
rethinking and radical redesign of business processes to improve performance, quality, and productivity
Capacity
amount of a product that a company can produce under normal circumstances
Competitive Product Analysis
process by which a company analyzes a competitor’s products to identify desirable improvements
Consistency
dimension of quality that refers to sameness of product quality from unit to unit
Detailed Schedule
schedule showing daily work assignments with start and stop times for assigned jobs
Fixed-Position Layout
labor, equipment, materials, and other resources are brought to the geographic location where all production work is done
Follow-Up
operations control activity for ensuring that production decisions are being implemented
Gantt Chart
production schedule that breaks down large projects into steps to be performed and specifies the time required to perform each step
Goods Operations (Goods Production)
activities producing tangible products, such as radios, newspapers, buses, and textbooks
High-Contact System
level of customer contact in which the customer is part of the system during service delivery
Inventory Control
process of receiving, storing, handling, and counting of all raw materials, partly finished goods, and finished goods
ISO 9000
program certifying that a factory, laboratory, or office has met the quality management standards set by the International Organization for Standardization
ISO 14000
certification program attesting to the fact that a factory, laboratory, or office has improved its environmental performance
Just-In-Time (JIT) Production
type of lean production system that brings together all materials at the precise time they are required at each production stage
Lean Production System
production system designed for smooth production flows that avoid inefficiencies, eliminate unnecessary inventories, and continuously improve production processes
Low-Contact System
level of customer contact in which the customer need not be part of the system to receive the service
Make-To-Order Operations
activities for one-of-a-kind or custom-made production
Make-To-Stock Operations
activities for producing standardized products for mass consumption
Master Operations Schedule
schedule showing which products will be produced, and when, in upcoming time periods
Materials Management
process of planning, organizing, and controlling the flow of materials from sources of supply through distribution of finished goods
Operations Capability (Production Capability)
special ability that production does especially well to outperform the competition
Operations Control
process of monitoring production performance by comparing results with plans and taking corrective action when needed
Operations Process
set of methods and technologies used to produce a good or a service
Operations (Production)
activities involved in making products, goods, and services for customers
Operations (Production) Management
systematic direction and control of the activities that transform resources into finished products that create value for and provide benefits to customers
Operations (Production) Managers
managers responsible for ensuring that operations activities create value and provide benefits to customers
Outsourcing
replacing internal processes by paying suppliers and distributors to perform business processes or to provide needed materials or services
Process Layout (Custom-Product Layout)
physical arrangement of production activities that groups equipment and people according to function
Product Layout (Same-Steps Layout)
physical arrangement of production steps designed to make one type of product in a fixed sequence of activities according to its production requirements
Productivity
the amount of output produced compared with the amount of resources used to produce that output
Performance
dimension of quality that refers to how well a product does what it is supposed to do
PERT Chart
production schedule specifying the sequence of activities, time requirements, and critical paths for performing the steps in a project
Purchasing
acquisition of the materials and services that a firm needs to produce its products
Quality
combination of “characteristics of a product or service that bear on its ability to satisfy stated or implied needs”
Quality Control
action of ensuring that operations produce products that meet specific quality standards
Quality Improvement Team
total quality management tool in which collaborative groups of employees from various work areas work together to improve quality by solving common shared production problems
Quality Ownership
principle of total quality management that holds that quality belongs to each person who creates it while performing a job
Service Operations (Service Production)
activities producing intangible and tangible products, such as entertainment, transportation, and education
Staff Schedule
assigned working times in upcoming days for each employee on each work shift
Supplier Selection
process of finding and choosing supplies from whom to buy
Supply Chain Management (SCM)
principle of looking at the supply chain as a whole to improve the overall flow through the system
Supply Chain (Value Chain)
flow of information, materials, and services that starts with raw-materials suppliers and continues adding value through other stages in the network of firms until the product reaches the end customer
Total Quality Management (TQM)
all activities involved in getting high-quality goods and services into the marketplace
Transportation
activities in transporting resources to the producer and finished goods to customers
Utility
product’s ability to satisfy a human want or need
Value-Added Analysis
process of evaluating all work activities, materials flows, and paperwork to determine the value that they add for customers
Warehousing
storage of incoming materials for production and finished goods for distribution to customers