Production
The creation of goods using land, labor, materials, capital, entrepreneurship, and knowledge (factors of production)
Production management
All the activities managers engage in to help firms create goods
Operations management
A specialized area in management that converts or transforms resources into goods and services
(Includes inventory management, quality control, production scheduling, follow up services)
The production process (inputs)
Land, labor, materials, capital, entrepreneurship, knowledge
The production process (production control)
Planning, routing, scheduling, dispatching, follow up
The production process (outputs)
Goods, services, ideas
Process manufacturing
The part of production that physically or chemically changes materials
Assembly process
The part of production that puts together components
Intermittent processes
Production runs are short and the producer adjusts machines frequently to make different products
Continuous processes
Long production runs turn out finished goods over time
Operations management (objective)
Provide high quality goods and services in response to customer demand
Computer aided design (CAD)
The use of computers in the design of products
Computer aided manufacturing (CAM)
The use of computers in the manufacturing of products
Computer integrated manufacturing (CIM)
Uniting of computer aided design with computer aided manufacturing
(Cuts up to 80% if time to program machines to make parts)
Mass customization
Tailoring products to meet the needs of a large number of individual customers
Facility layout
Physical arrangement of resources, including people, to most efficiently produce goods and provide services
Modular layout
Teams produce more complex units of final product
Assembly line layout
Workers do only a few tasks at a time
Fixed position layout
Allows workers to congregate around product
Just in time (JIT) inventory control
Production process in which a minimum of inventory is kept and parts, supplies, and other needs are delivered just in time to go on the assembly line
Quality
Consistency producing what the costumer wants while reducing errors before and after delivery
Six sigma quality
Quality measure that allows only 3.4 defects per million opportunities
Lean manufacturing
Using fewer resources compared to mass production
PERT
Program evaluation and review technique (PERT)
Method for analyzing that tasks invoked in completing a given project and estimating the time needed
