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34 Cards in this Set
- Front
- Back
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Production
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process of getting a good or a service to the customer
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operations management
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consists of managing the activities and processes to produce and distribute goods and services
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Issues that affect the efficiencies of a company’s production process
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-increasing competition
-global manufacturing pressures -changing customer needs -increasing prices on resources and labor -sagging economy |
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utility supply
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availability of public infrastructure services, such as electricity, natural gas, water, and communications
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what impacts location selection?
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-labor availability
-living conditions -laws and regulations |
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facility layout
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physical arrangement of resources and people in the production process and how they interact
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Manufacturing in the United States
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-US manufacturing accounted for one-tenth of all US jobs in 2009
-Manufacturing in the US was hit hard in the past decade by significant increases in imported goods, causing job losses -because manufacturing firms use a substantial amount of commodities and services as inputs, |
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different types of facility layours
1. Process layout 2. Product layout 3. cellular layout 4. fixed position layouts |
-groups together similar tasks, and the partially assembled product moves from one station to the next as workers perform a particular step in the production process. used to produce low volume, customized products
-used mostly for high-volume, standardized products that can be produced in a sequential fashion. -places small teams of workers who handle all aspects of assembly. each station is equipped with the parts and tools necessary to produce a product from start to finish and the workers move through the workstations -used for manufacturing large items, such as ships, airplanes, and modular homes. product stays in one place and workers move around the product to complete its assembly |
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make-or-buy decision
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decision of what needs to be manufactured and what needs to be purchased from outside suppliers when starting production process
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Supplier selection steps
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1. Clearly define requirements
2. Research potential suppliers and develop a list of 3-5 that fit the defined needs 3. Ask the potential suppliers for quotes 4. Decide and work out a contract |
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production management
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the planning, implementation, and control measures used to convert resources into finished products
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utility
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value that satisfies customers' wants or needs
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production plan
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description of how resources are to be used to develop a product in a specific way
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mass production
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method of producing large quantities of goods at a low cost
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assembly line
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partially complete products are moved from one worker to the next on a conveyor belt
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mass customization
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production of goods/services tailored to meet customers' individual needs cost-effectively
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flexible manufacturing system (FMS)
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used for mass customization. several machines are linked together by one central computer. all machines in the system can process different part types simultaneously. can adapt to changes in schedules and product specifications
-Four components: -processing machines -material handling system -central computer -human labor -Used for products with: -low to medium demand -frequent changes in demand -A wider variety of possible customization |
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lean production
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set of principles concerned with reducing waste and improving flow
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Computer-aided design (CAD)
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using a computer and software to create two-dimensional or three-dimensional models of physical parts
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computer-aided manufacturing (CAM)
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uses the desin data to control the machinery used in the manufacturing process
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Computer-integrated manufacturing (CIM)
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systems combine design and manufacturing functions with other automated functions, such as order taking, shipment, and billing for the complete automation of a manufacturing plant.
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scheduling
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efficient organization of equipment, facilities, labor, and materials
two types: forward-start with date that materials are available, create the most efficient schedule, and then determine a shipping date based on that schedule backward-given a shipping or due date, and you have to determine the start date and the most efficient schedule based on when everything must be finished |
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Gantt chart
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developed by Henry Gantt in 1920s. used to lay out each task in a project, the order in which these tasks must be completed, and how long each task take,
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Program evaluation and review technique (PERT)
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maps out the various steps involved in a project, differentiating tasks that must be completed in a certain order from tasks that may be completed simultaneously
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purchasing
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task of acquiring the materials and services needed in production process
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inventory control
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receiving, storing, handling, and tracking of everything in a company's stock, from raw materials to finished products
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radio frequency identification (RFID)
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tag on each item, allowing a computer to keep track of the status and quantity of each item,.
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materials requirement planning (MRP)
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computer-based program used for inventory control and production planning
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Enterprise resource planning (ERP)
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does inventory control and process scheduling that MRP systems can do, but can integrate these functions with other aspects that business management would like to tie together, such as finance and human resources.
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total quality management (TQM)
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every factor in producing high-quality goods-management, customers, employees, and suppliers are inspected. to produce high quality
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statistical quality control (SQC)
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continual monitoring of each stage of the entire production process to ensure that quality standards are being met at every stage.
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Statistical Process control (SPC)
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uses statistical sampling of products at every phase of production and displays the results on a graph to show potential variations that need to be corrected
common SPC tool is Six Sigma-method that seeks to eliminate defects by removing variation in outcomes and measuring and analyzing manufacturing processes to see if standards are being met |
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International Organization for Standardization (ISO)
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an organization dedicated to creating worldwide standards of quality for goods and services
ISO 9001- implements a quality management system ISO 14001- implements an environmental management system |
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Just-in-time (JIT)
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-have product once its sold
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