Managing operations and improving quality -- terms

business essentials -- part 7 -- terms

service operations -- activities producing intangible and tangible products, such as entertainment, transportation, and education
goods production -- activities producing tangible products, such as radios, newspapers, buses, and textbooks
utility -- a product's ability to satisfy a human want
operations (or production) management -- systematic direction and control of the processes that transform resources into finished products that create value and provide benefits to customers
operations (or production) managers -- managers responsible for production, inventory, and quality control
operations process -- set of methods and used in the production of a good or service
analytic process -- production process in which resources are broken down into components to create finished products
synthetic process -- production process in which resources are combined to create finished products
high contact system -- level of customer contact in which the customer is part of the system during service delivery
low contact system -- level of customer contact in which the customer need not be a part of the system to receive the service
capacity -- amount of a product that a company can produce under normal working conditions
process layout -- spatial arrangement of production activities that groups equipment and people according to function
cellular layout --spatial arrangement of production facilities designed to families of products through similar flow paths
product layout -- spatial arrangement of production activities designed to move resources through a smooth, fixed sequence of steps
assembly line -- product layout and what a product moves step-by-step through a plant on conveyor belts or other equipment until it is complete
master production schedule -- schedule showing which products will be produced, when production will take place, and what resources will be used
Gantt chart -- production schedule diagramming the steps in a project and specifying the time requirement for each
PERT chart -- production schedule specifying the sequence and critical path for performing the steps in a project
operations control -- process of monitoring production performance by comparing results with plans
follow-up -- production control activity for ensuring that production decisions are being implemented
materials management -- planning, organizing, in controlling the flow of materials from design through distribution of finished goods
standardization -- use of standard and uniform components in the production process
purchasing -- acquisition of the raw materials and services that firm needs to produce its products
supplier selection -- process of finding in selecting suppliers from whom to buy
inventory control -- in materials management, receiving, storing, handling, and counting of raw materials, partly finished goods, and finished goods
lean system -- production system designed for smooth production flows that avoid inefficiencies, eliminate unnecessary inventories, and continuously improve production processes
just in time (JIT) production -- production method that brings together all materials and parts needed at each production stage at the precise moment they are required
material requirements planning (MRP) -- production method in which a bill of materials is used to ensure that the right amounts of materials are delivered to the right place at the right time
bill of materials -- production control tool that specifies the necessary ingredients of a product, the order in which they should be combined, and how many of each are needed to make one batch
quality control -- management of the production process designed to manufacture goods or supply services that meet specific quality standards
quality -- a products fitness for use; it's success in offering features that consumers want
total quality management (TMQ) also called quality assurance -- the sum of all activities involving getting high-quality products into the marketplace
performance quality -- the performance features offered by a product
quality reliability -- consistency of products quality from unit to unit
quality ownership -- principle of total quality management that holds that quality belongs to each person who creates it while performing a job
competitive product analysis -- process by which a company analyzes a competitor's product to identify desirable improvements
statistical process control (SPC) -- methods for gathering data to analyze variations in production activities to see when adjustments are needed
control chart -- process control method that plots test sample results on a diagram to determine when a process is beginning to depart from normal operating conditions
quality/cost study -- method of improving quality by identifying current costs and areas with the greatest cost savings potential
internal failures -- reducible costs incurred during production and before bad products leave a plant
external failures -- reducible costs incurred after a defective products have left the plant
ISO 9000 -- program certifying that a factory, laboratory, or office has meant quality management standards of the International Organization for Standardization
business process reengineering -- redesigning of business processes to improve quality, performance, and customer service
outsourcing -- strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials or resources
supply chain -- 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 consumer
supply chain management (SCM) -- principle of looking at the supply chain as a whole in order to improve the overall flows through the system