Ch7

Front 1

Service operations

Back 1

provide tangible and intangible services

Front 2

goods operations (or goods production

Back 2

activities producing tangible products, such as radios, newspapers, buses, and textbooks

Front 3

operations

Back 3

activities involved in making products-goods and services-for customers

Front 4

utility

Back 4

a products ability to satisfy a human want or need

Front 5

Operations (production) management

Back 5

the systematic direction and control of the processes that transform resources into finished services and goods that create value for and provide benefits to customers

Front 6

Operations (production) managers

Back 6

are responsible for ensuring that operations processes create what customers want and need.

Front 7

Differences Between Service and Goods Manufacturing Operations

Back 7

Whereas goods are produced, services are performed. Four aspects of service operations can make such operations more complicated than simple goods production

Front 8

Interacting with Consumers

Back 8

Manufacturing operations focus on physical goods, whereas service operations are a combination of goods and services.

Front 9

Services Can Be Intangible and Unstorable

Back 9

Intangibility refers to the untouchable value consumers receive in the form of pleasure, gratification, or a feeling of safety; unstorability refers to the idea that a service is often wasted if it is not used

Front 10

Customer’s Presence in the Operations Process

Back 10

Service operations often acknowledge the customer as part of the service transaction itself

Front 11

Intangibles Count for Service Quality

Back 11

Customers use different measures to judge services and goods because services include intangibles, not just physical objects

Front 12

operations process

Back 12

set of methods and technologies used in the production of goods and services.

Front 13

make-to-order operation

Back 13

makes one-of-a-kind products, according to customer specifications

Front 14

make-to-stock operation

Back 14

produces standardized products in large quantities.

Front 15

high-contact processes

Back 15

the customer must be a part of the service

Front 16

low-contact processes

Back 16

customers do not have to be present while the service transaction is being performed.

Front 17

Operations capability

Back 17

activity or process that production must do especially well, with high proficiency.

Front 18

capacity

Back 18

The amount of a product that a company can produce under normal working conditions

Front 19

Location Planning

Back 19

Facility location affects production costs and flexibility. Depending on the site of its facility, a company may either be capable of producing a low-cost product or may find itself at an extreme cost disadvantage.

Front 20

Layout Planning

Back 20

Layout determines whether firms can respond quickly and efficiently to customer requests for additional or different products, or find they are unable to match competitors’ speed and convenience

Front 21

process layout

Back 21

equipment and people are grouped according to function;

Front 22

product layout

Back 22

one type of product is produced in a fixed sequence and is arranged according to its production requirements

Front 23

assembly line

Back 23

product layout in which a product moves step by step through a plant on conveyor belts or other equipment until it is completed

Front 24

quality

Back 24

the combination of characteristics of a product or service that bear on its ability to satisfy stated or implied needs

Front 25

consistency

Back 25

refers to the sameness of product quality from unit to unit.

Front 26

Improving Process Flows

Back 26

A process flowchart is helpful in identifying the sequence of production activities, movements of materials, and work performed at each stage of the process

Front 27

Improving Customer Service

Back 27

Customer service can be improved at various stages along the process flowchart

Front 28

master production schedule

Back 28

shows which products will be produced, and when, in upcoming time periods.

Front 29

detailed schedule

Back 29

indicates daily work assignments with start and stop times for assigned jobs at each work station.

Front 30

Staff schedules

Back 30

specify assigned working times in upcoming days for each employee on each work shift

Front 31

PERT charts

Back 31

break down large projects into steps to be performed and specify the time required to perform each one; PERT also identifies the critical path, which is the most time-consuming set of activities for completing the project.

Front 32

operations control

Back 32

requires production managers to monitor production performance by comparing results with detailed plans and schedules.

Front 33

follow-up

Back 33

operations control activity for ensuring that production decisions are being implemented

Front 34

materials management

Back 34

plans, organizes, and controls the flow of materials. is the process by which managers plan, organize, and control the flow of materials from sources of supply through distribution of finished goods

Front 35

supplier selection

Back 35

process of findng and choosing suppliers from whom to buy

Front 36

purchasing

Back 36

quisition of the materials and services that a firm needs to produce its products

Front 37

transportation

Back 37

activities in transporting resources to the producer and finished goods to customers

Front 38

warehousing

Back 38

storage of incoming materials for production and finished goods for distribution to customers

Front 39

inventory control

Back 39

receiving,storing,handling, and counting of all raw materials, partly finished goods, and finished goods

Front 40

lean production sytem

Back 40

a production system designed for smoth production flows that avoid inefficiencies, eliminate unnecessary inventories, and continuously improve production processes

Front 41

just-in-time(jit) production

Back 41

a type of lean production system that brings together all materials at the precise time they are required at each production stage

Front 42

quality control

Back 42

taking action to ensure that operations produce products that meet specific quality standards

Front 43

Total Quality Management (TQM)

Back 43

includes all the activities necessary for getting quality goods and services into the marketplace;

Front 44

quality ownership

Back 44

the idea that quality belongs to each person who creates it while performing a job.

Front 45

competitive product analysis

Back 45

a process by which a company analyzes a competitor’s products to identify desirable improvements

Front 46

Value-added analysis

Back 46

refers to the evaluation of all work activities, material flows, and paperwork to determine the value that they add for customers.

Front 47

Quality improvement teams

Back 47

are groups of employees from various work areas who meet regularly to define, analyze, and solve common production problems.

Front 48

ISO 9000

Back 48

is a certification program attesting to the fact that a firm or laboratory has met the quality-management requirements set by the International Organization for Standardization

Front 49

ISO 14000

Back 49

program certifies improvements in environmental performance. It requires a firm to develop an environmental management system; a plan documenting how the company has acted to improve its performance in using resources and in managing pollution

Front 50

Business process reengineering

Back 50

Reengineering involves the redesign of business processes to achieve improvements in cost, quality, service, and speed

Front 51

supply chain (or value chain)

Back 51

for any product is the flow of information, materials, and services that starts with raw-materials suppliers and continues through other stages in the operations process until the product reaches the end customer

Front 52

Supply chain management

Back 52

looks at the supply chain as a whole in order to improve the overall flow through a system composed of companies working together.

Front 53

Outsourcing and Global Supply Chains

Back 53

Outsourcing is the strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials or services. Global outsourcing creates new operations jobs for supply chain management and, sometimes, the need for more or different types of employee training.