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BA 101 Chapter 9

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The development and administration of the activities involved in transforming resources into goods and services   Operations Management (OM)  
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The activities and processes used in making tangible products; also called production   Manufacturing  
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The activities and processes used in making tangible products; also called manufacturing   Production  
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The activities and processes used in making both tangible and intangible products   Operations  
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The resources-such as labor, money, materials, and energy-that are converted into outputs   inputs  
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The goods, services, and ideas that result from the conversion of inputs   Outputs  
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The making of identical interchangeable components or products   Standardization  
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The creation of an item in self-contained units, or modules, that can be combined or interchanged to create different products   Modular design  
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Making products to meet a particular customer's needs or wants   Customization  
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The maximum load that an organizational unit can carry or operate   Capacity  
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A layout that brings all resources required to create the product to a central location   Fixed-position layout  
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A company using a fixed-position layout because it is typically involved in large, complex projects such as construction or exploration   Project Organization  
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A layout that organizes the transformation process into departments that group related processes   Process Layout  
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Organizations that a deal with products of a lesser magnitude than do project organizations; their products are not necessarily unique buy possess a significant number of differences   Intermittent Organizations  
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A layout requiring that production be broken down into relatively simple tasks assigned to workers, who are usually positioned along an assembly line   Product Layout  
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Companies that use continuously running assembly lines, creating products with many similar characteristics   Continuous Manufacturing Organizations  
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The design of components, products, and processes on computers instead of on paper   Computer-assisted design (CAD)  
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Manufacturing that employs specialized computer systems to actually guide and control the transformation processes   Computer-assisted manufacturing (CAM)  
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The direction of machinery by computers to adapt to different versions of similar operations   Flexible Manufacturing  
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A complete system that designs products, manages machines and materials, and controls the operation function   Computer-integrated manufacturing (CIM)  
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Connecting and integrating all parties or members of the distribution system in order to satisfy customers   Supply Chain Management  
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The buying of all the materials needed by the organization; also called procurement   Purchasing  
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All raw materials, components, completed or partially completed products, and pieces of equipment a firm uses   Inventory  
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The process of determining how many supplies and goods are needed and keeping track of quantities on hand, where each item is, and who is responsible for it   Inventory Control  
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A model that identifies the optimum number of items to order to minimize the costs of managing (ordering, storing, and using) them   Economic Order Quantity (EOQ) Model  
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A technique using smaller quantities of materials that arrive "just in time" for use in the transformation process and therefore require less storage space and other inventory management expense   Just-in-time (JIT) inventory management  
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A planning system that schedules the precise quantity of materials needed to make the product   Material-requirements planning (MRP)  
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The sequence of operations through which the product must pass   Routing  
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The assignment of required tasks to departments or even specific machines, workers, or teams   Scheduling  
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The processes an organization uses to maintain its established quality standards   Quality Control  
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A philosophy that uniform commitment to quality in all areas of an organization will promote a culture that meets customers' perceptions of quality   Total quality management (TQM)  
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A system in which management collects and analyzes information about the production process to pinpoint quality problems in the production system   Statistical Process Control  
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A series of quality assurance standards designed by the International Organization for Standardization (ISO) to ensure consistent product quality under many conditions   ISO 9000  
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