Production
the creation of finished goods and services using the factors of production:land, labor, capital, entrepreneurship, and knowledge.
Production management
the term used to describe all activities managers do to help their firms create goods.
Operations management
a specialized area in management that converts or transforms resources into goods and services
Form utility
The value producers add to materials in creation of finished goods and services
process manufacturing
that part of the production process that physically or chemically changes the material
assembly process
that part of the production process that puts together things.
continuous process
a production process in which long production runs turn out finished goods over time.
intermittent process
a production process in which the production run is short and the machines are changed frequently to make different products.
computer aided design
the use of computers in the design of products
computer aided manufacturing
the use of computers in the manufacturing of products
computer integrated manufacturing
the combining of CAD with CAM
Flexible manufacturing
designing machines to do multiple tasks so that they can produce a variety of products
Lean manufacturing
the production of goods using less of everything compared to mass production
mass customization
tailoring products to meet the needs of individual customers.
Facility location
the process of selecting a geographic location for a company's operations.
Telecommuting
working from home via computer and modem.
facility layout
the physical arrangement of resources in the production process.
Materials requirement planning
a computer based operations management system that uses sales forecasts to make sure that needed parts and materials are available at the right time/place.
Enterprise resource planning
a newer version of materials requirement planning that combines the computerized functions of all the divisions and subsidiaries of the firm: human resources/order fulfillment, into a single software program that uses one database.
Purchasing
the function in a firm that searches for high quality material resources, finds the best suppliers and negotiates the best price for goods/services.
Just in time inventory control
a production process in which a minimum of inventory is kept on the premises, all necessary things are delivered just in time to go on the assembly line.
quality
consistently producing what the customer wants while reducing errors before/after delivery to customer.
statistical quality control
the process some managers use to continually monitor all phases of the production process to assure that quality is there from the beginning.
Statistical process control
the process of testing statistical samples of product components at each stage of the production process.
critical path
in a PERT network the sequence of tasks that takes the longest time to complete