Chapter 9: Operations Management

The process that takes basic resources and transforms them into finished products
Operations/production
The value people add in converting resources into finished products
Form Utility
The process in which resources are broken down to create finished products (cutting up a chicken)
Analytic transformation
The process in which resources are combined to create finished products (baking a cake)
Synthetic transformation
A production process in which goods/services are turned out in a long production run on an ongoing basis ex. pumping oil out of the ground, oil refineries
Continuous processes
Production in which finished goods and services are turned out in a series of short production runs and machines are changed frequently to make different products
Intermittent processes
Use of machines for people to use in production
Mechanization
Using uniform parts that could be easily interchanged
Standardization
Consists of a series of steps for assembling a product involving standardized parts and/or repetitive labor steps
Assembly line
T/F Henry Ford was the first to use the assembly line
False – he was the first to mechanize it
__________ uses machines as much as possible to replace people in production tasks (robots)
Automation
The production of uniform goods in great quantities
Mass production
The assembly line arrangement
Product layout
Work grouped by function
Process layout
When companies produce goods and services by integrating many facilities, functions, and processes
Supply-chain management
Only minimal supplies are kept on the organization’s premises and others are delievered by suppliers as needed
Just-in-time inventory
A specialized bar chart that shows the relationship between the kind of work tasks planned and their scheduled completion dates
Gantt Charts
Program evaluation and review technique is a diagram for determining the best sequencing of task
PERT Charts
Consists of a series of quality-assurance procedures companies must install, in purchasing, manufacturing, inventory, shipping and other areas, that can be audited by registrars or independent quality control experts
ISO 9000
A statistical technique that used periodic random samples from production runs to see if quality is within the acceptable range
Statistical process control
A rigorous statistical analysis process that reduces defects in manufacturing and service-related processes
Six Sigma
What process adds value to resources?
Transformation
Converting basic resources into finished products
Transformation
Eliminating unnecessary steps and using the fewest resources and continually striving for improvement
Lean manufacturing
Quality control method involving a comprehensive approach dedicated to continuous quality, improvement, training, and customer satisfaction
Total quality management
A process by which a company compares its performance with that of high-performing organizations
Benchmarking
Permitting manufacturers to make part of product changes by manipulating computer programs that run production machines instead of making changes to the machines themselves
Flexible manufacturing systems
Designed to determine the best sequencing of tasks and does not generally include such minute details as which individual is responsible for a particular task
PERT chart
T/F ISO9000 provides an international seal of approval for overseas businesses
True
T/F Six Sigma means the company product is 99.9997% perfect
True