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Business Essentials Ch. 7 Vocabulary
Vocabulary words from Chapter 7 of Business Essentials, 6th Ed. by Ebert and Griffin
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Business
Undergraduate 1
08/12/2011

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Term
service operations
Definition
activities producing intangible and tangible products, such as entertainment, transportation, and education
Term
goods operations
Definition
activities producing tangible products, such as radios, newspapers, buses, and textbooks
Term
utility
Definition
a product's ability to satisfy an human want or need
Term
three types of utility
Definition
form, time, and place
Term
operations management
Definition
systematic direction and control of the processes that transform resources into finished products that create value for and provide benefits to customers
Term
operations managers
Definition
managers responsible for ensuring that operations processes create value and provide benefits to customers
Term
operations process
Definition
set of methods and technologies used to produce a good or service
Term
make-to-order operations
Definition
activities for one-of-a-kind or custom-made production
Term
make-to-stock operations
Definition
activities for producing standardized products for mass production
Term
make-to-stock operations
Definition
activities for producing standardized products for mass production
Term
low-contact system
Definition
level of customer contact in which the customer need not be part of the system to receive the service
Term
high-contact system
Definition
level of customer contact in which the customer is part of the system during service delivery
Term
True or false: Whereas the tern 'production' refers primarily to the creation of physical goods, the term operations refers to activities for providing services to customers.
Definition
False
Term
operations capability
Definition
an activity or process that production does especially well with high proficiency
Term
capacity
Definition
amount of a product that a company can produce under normal conditions
Term
process layout
Definition
physical arrangement of production activities that groups equipment and people according to function
Term
product layout
Definition
physical arrangement of production activities designed to make one type of product in a fixed sequence according to its production requirements
Term
assembly line
Definition
product layout in which a product moves step by step through a plant on conveyor belts or other equipment until it is completed
Term
quality
Definition
the combination of "characteristics of a product or service that bear on its ability to satisfy stated or implied needs"
Term
performance (in quality)
Definition
a dimension of quality that refers to how well a product does what its supposed to do
Term
consistency (in quality)
Definition
a dimension of quality that refers to sameness of product quality from unit to unit
Term
master production schedule
Definition
schedule showing which products will be produced, and when, in upcoming time periods
Term
detailed schedule
Definition
a schedule showing daily work assignments with start and stop times for assigned jobs
Term
staff schedule
Definition
assigned working times in upcoming days for each employee on each work shift
Term
PERT chart
Definition
production schedule specifying the sequence of activities, time requirements, and critical path for performing the steps in a project
Term
operations control
Definition
process of monitoring production performance by comparing results with plans and taking corrective action when needed
Term
follow-up
Definition
operations control activity for ensuring that production decisions are being implemented
Term
materials management
Definition
planning, organizing, and controlling the flow of materials from sources of supply through distribution of finished goods
Term
supplier selection
Definition
process of finding and choosing suppliers from whom to buy
Term
purchasing
Definition
acquisition of the materials and service that a firm needs to produce its products
Term
transportation
Definition
activities in transporting resources to the producer and finished goods to customers
Term
warehousing
Definition
storage of incoming materials for production and finished goods for distribution to customers
Term
inventory control
Definition
receiving, storing, handling, and counting of all raw materials, partly finished goods, and finished goods
Term
lean production system
Definition
a production system designed for smooth production flows that avoid inefficiencies, eliminate unnecessary inventories, and continuously improve production processes
Term
just-in-time (JIT) production
Definition
a type of lean production system that brings together all materials at the precise time they are required at each production stage
Term
quality control
Definition
taking action to ensure that operations produce products that meet specific quality standards
Term
total quality management (TQM)
Definition
the sum of all activities involved in getting high-quality goods and service into the marketplace
Term
quality ownership
Definition
principle of total quality management that holds that quality belongs to each person who creates it while performing a job
Term
competitive product analysis
Definition
process by which a company analyzes a competitor's products to identify desirable improvements
Term
value-added analysis
Definition
process of evaluating all work activites, materials flows, and paperwork to determine the value that they add for customers
Term
quality improvement team
Definition
TQM tool in which collaborative groups of employees from various work areas work together to improve quality by solving common shared production problems
Term
ISO 9000
Definition
program certifying that a factory, laboratory, or office has met the quality management standards set by the International Organization for Standardization
Term
ISO 14000
Definition
certification program attesting to the fact that a factory, laboratory or office has improved its environmental performance
Term
business process reengineering
Definition
the rethinking and radical redesign of business processes to improve performance, quality and productivity
Term
supply chain
Definition
flow of information, materials and services that starts with raw materials and continues adding value through other stages in the network of firms until the product reaches the end customer
Term
supply chain management (SCM)
Definition
principle of looking at the supply chain as a whole to improve the overall flow through the system
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