Operations Management Chapter 3: Product Design And Process Selection

Front 1

Product Design

Back 1

the process of defining all of the product's characteristics

Front 2

Service Design

Back 2

process of establishing all of the characteristics of the service, including physical, sensual and psychological benefits

Front 3

Benchmarking

Back 3

process of studying the practices of the companies considered "best-in-class" and comparing your company's performance against theirs

Front 4

Reverse Engineering

Back 4

process of disassembling a product to analyze its design features

Front 5

Early Supplier Involvement (ESI)

Back 5

involving suppliers in the early stages of product design

Front 6

Break-even Analysis

Back 6

technique used to compute the amount of goods a company would need to sell to cover its costs

Front 7

Fixed Costs

Back 7

costs a company incurs regardless of how much it produces

Front 8

Variable Costs

Back 8

costs that vary directly with the amount of units produced

Front 9

Break-even Formula

Back 9

F/(SP - VC) = break-even quantity

F = fixed cost
VC = variable cost
SP = selling price per unit

Front 10

Design for Manufacture (DFM)

Back 10

series of guidelines to follow in order to produce a product easily and profitably

Front 11

Product Life Cycle

Back 11

series of stages that products pass through in their lifetime, characterized by changing product demands over time

Front 12

Concurrent Engineering

Back 12

an approach that brings together multifunction teams in the early phase of product design in order to simultaneously design the product and the process

Front 13

Remanufacturing

Back 13

concept of using components of old products in the production of new ones

Front 14

Intermittent Operation

Back 14

processes used to produce a variety of products with different processing requirements in lower volumes

Front 15

Repetitive Operations

Back 15

Processes used to produce one or a few standardized products in high volume

Front 16

Project Process

Back 16

process used to make a one-at-a-time product exactly to customer specifications

Front 17

Batch Process

Back 17

process used to produce a small quantity of products in groups or batches based on customer orders or specifications

Front 18

Line Process

Back 18

process used to produce a large volume of a standardized product

Front 19

Continuous Process

Back 19

process that operates continually to produce a high volume of a fully standardized product

Front 20

Process Flow Analysis

Back 20

technique used for evaluating a process in terms of the sequence of steps from inputs to outputs with the goal of improving its design

Front 21

Process Flowchart

Back 21

chart showing the sequence of steps in producing the product or service

Front 22

Bottleneck

Back 22

longest task in the process

Front 23

Make-to-stock strategy

Back 23

produces standard products and services for immediate sale or delivery

Front 24

Assemble-to-order strategy

Back 24

produces standard components that can be combined to customer specifications

Front 25

Make-to-order

Back 25

produces products to customer specifications after an order has been received

Front 26

Process Performance Metrics

Back 26

measurements of different process characteristics that tell how a process is performing

Front 27

Throughput Time

Back 27

average amount of time it takes a product to move through the system

Front 28

Process Velocity

Back 28

ratio of throughput time to value-added time

throughput time/value-added time

Front 29

Productivity

Back 29

ratio of outputs over inputs

Front 30

Utilization

Back 30

ratio of time a resource is used to time it is available for use

Front 31

Efficiency

Back 31

ratio of actual output to standard output

Front 32

Information Technology (IT)

Back 32

Technology that enables storage, processing and communication of information within and between firms

Front 33

Enterprise Resource Planning

Back 33

large software programs used for planning and coordinating all resources throughout the entire enterprise

Front 34

Global Positioning Systems (GPS)

Back 34

wireless technology that uses satellite transmission to communicate exact locations

Front 35

Radio Frequency Identification (RFID)

Back 35

wireless technology that uses memory chips with radio antennas attached to objects used to transmit data

Front 36

Automation

Back 36

using machinery to perform work without human operators

Front 37

Flexible Manufacturing System (FMS)

Back 37

automated system that combines the flexibility of intermittent operations with the efficiency of continuous operations

Front 38

Numerically Controlled (NC) Machine

Back 38

machine controlled by a computer that can perform a variety of tasks

Front 39

Computer-Aided Design

Back 39

system that uses computer graphics to design new products

Front 40

Computer-Integrated Manufacturing (CIM)

Back 40

integration of product design, process planning, and manufacturing using an integrated computer system

Front 41

Service Package

Back 41

grouping of physical, sensual, and psychological benefits that are purchased together as part of the service