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42 Cards in this Set
- Front
- Back
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tangible, can be stored in an inventory, can be shipped, are produced indep of consumer, can have at least some aspects of their quality determined objectively by measuring defects of deviations from desired values
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Goods
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intangible, can be consumed when produced, consumed where they are produced, require the customer to be active in the production, based on customer perceptions
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Services
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completing a task at the lowest cost
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efficiency
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completing something that has the greatest value; more crucial to success
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effectiveness
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place primary interest on locating close to their markets
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Service firms
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concerned with availability/ price of land
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Manufacturing Firms
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Key considerations in deciding on the right process
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volume of production and the degree of standardization of the product
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used when products are standardized and produced in large volumes- mass production
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Flow Shop
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best known type of flow shopr process
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Assembly Line
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use when production is even more standardized than flow ship and the rate of production is very high
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continuous flow process
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involves the coordination of many complex activities to produce a large scale good or service
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Project
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Reasons to hold large inventories
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To meet unexpected increases in demand; To reduce costs associated with switching processes; To compensate for forecast errors; To smooth out production schedules
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Costs of holding large inventories
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Items in inventory don’t generate revenue; firm must buy or rent more space; risk of depreciation or spoilage
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Two key tools to Project Scheduling
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Gantt charts and Critical Path Method
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Advantages to Robots
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perform unwanted jobs
won't get tired flexible |
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software provides powerful driving and drafting tools that enable users to create and edit blueprints and design drawings quick and easily
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CAD
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software enables users to test, analyze, and optimize their designs
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CAE
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software takes the electronic design for a product and creates the programmed instructions that robots must follow to produce that product as efficiently as possible
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CAM
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enables CAD designs to flow directly to CAM programs
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CAD/CAM
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When a CAD/CAM software system is integrated with robots and other high tech equipment
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CIM
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Enables the firm to produce custom-designed products for individual consumers quickly and at low cost; key element of mass customization
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CIM
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Help many organizations track the movement of parts, materials, and finished goods through a supply chain with greater accuracy; promise to improve the efficiency of SCM
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RFID chips
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attempts to gain more control over its supply chain by either performing the activates itself or acquiring the organizations to do it
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Vertical Integration
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increases the efficiency of the supply chain, enabling firms to become more competitive and generate more growth
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Outsourcing
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Problem of Outsourcing
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workers who lose jobs to it probably cant qualify for the new ones it creates
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Goal is to integrate the information flows of all aspects of a business operations- accounting finance, sales and marketing, production, and hr
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ERP
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Difficulties of ERP
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Expensive
Date must be transferred to new system ERP software requires employees to learn now ways of entering and accessing data |
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defined in terms of how well a good or service satisfies customers preferences
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Quality
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Improved Quality Helps the Business's Bottom Line
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The Deming Chain Reaction
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approach to quality improvement that calls for everyone within an organization to take responsibility for improving quality and emphasizes the need for a long term commitment to continuous improvement
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TQM
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Characteristics of TQM
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Customer focus, emphasis on building quality through the organization, empowerment of employees, focus on prevention rather than correction, long run commitment to continuous improvement
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attempts to reduce poka-yokes
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TQM
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Simple procedures built into the production process that either prevent workers from making mistakes or quickly catch and correct mistakes if they do occur
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Poka-yokes
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organization wide focus on quality, emphasis on finding and eliminating causes of errors or defects, long term focus on continuous quality improvement, relied on teams of workers to carry out specific projects to improve quality
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Six Sigma
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To reduce defects of any operation or process to a level of no more than 3.4 per million opportunities
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Unifying measure of Six Sigma
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Common approaches to implement quality improvement
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Participate in the Baldridge National Quality Program and to seek certification under the International Organization for Standardization’s ISO 9000 standards
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Ensure that goods produced in one country will meet the requirements of buyers in other countries
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ISO 9000
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Refers to set of strategies and practices to eliminate waste, which is defined as any function or activity that uses resources but doesn’t create value
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Lean Production
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diagram that provides a detailed picture of the flows of all parts, materials, and information through and entire production process, identifies the amount of labor and other resources used to carry out each activity and indicated activity cycle time
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Value Stream Map
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purpose of this process is to is to find and eliminate sources of waste
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Value Stream Map
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avoids over-production and holding large inventories by using this
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JIT production
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pull system
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JIT production
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