"The MGMT Solution," Vocabulary from Chapter 18

This list focuses on managing service and manufacturing operations (Part 5, Chapter 18).

Here are links to all the chapters in Part 5, Controlling: Chapter 16, Chapter 17, Chapter 18

Here are links to all the parts of the textbook published by South-Western Cengage Learning: Part 1, Part 2, Part 3, Part 4, Part 5
40 words 9 learners

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Full list of words from this list:

  1. affordable
    reasonably priced
    Another benefit of productivity is that it makes products more affordable or better.
  2. labor
    productive work, especially physical work done for wages
    Labor is one kind of input that is frequently used when determining partial productivity. Labor productivity typically indicates the cost or number of hours of labor it takes to produce an output. In other words, the lower the cost of the labor to produce a unit of output, or the less time it takes to produce a unit of output, the higher the labor productivity.
  3. produce
    bring forth or yield
    More specifically, multifactor productivity indicates how much labor, capital, materials, and energy it takes to produce an output.
  4. provider
    a person or business that supplies a service or commodity
    Rather than serviceability and durability, the quality of service interactions often depends on how the service provider interacts with the customer.
  5. assurance
    freedom from doubt; belief in yourself and your abilities
    Five characteristics typically distinguish a quality service: reliability, tangibles, responsiveness, assurance, and empathy.
  6. appearance
    outward or visible aspect of a person or thing
    Thus, tangibles refer to the appearance of the offices, equipment, and personnel involved with the delivery of a service.
  7. responsiveness
    the quality of reacting quickly
    Responsiveness is the promptness and willingness with which service providers give good service.
  8. courteous
    characterized by politeness and gracious good manners
    Assurance is the confidence that service providers are knowledgeable, courteous, and trustworthy.
  9. empathy
    understanding and entering into another's feelings
    Empathy is the extent to which service providers give individual attention and care to customers’ concerns and problems.
  10. identical
    exactly alike; incapable of being perceived as different
    ISO, pronounced eye-so, comes from the Greek word isos, meaning “equal, similar, alike, or identical” and is also an acronym for the International Organization for Standardization, which helps set standards for 162 countries.
  11. certify
    guarantee as meeting a certain standard
    To become ISO certified, a process that can take months, a company must show that it is following its own procedures for improving production, updating design plans and specifications, keeping machinery in top condition, educating and training workers, and satisfactorily dealing with customer complaints.
  12. accredited
    given official approval to act
    An accredited third party oversees the ISO certification process, just as a certified public accountant verifies that a company’s financial accounts are up-to-date and accurate.
  13. administer
    supervise or be in charge of
    The Baldrige National Quality Award, which is administered by the U.S. government’s National Institute for Standards and Technology, is given “to recognize U.S. companies for their achievements in quality and business performance and to raise awareness about the importance of quality and performance excellence as a competitive edge.”
  14. extensive
    broad in scope or content
    At a minimum, each company that applies receives an extensive report based on 300 hours of assessment from at least eight business and quality experts.
  15. comprehensive
    broad in scope
    “The application and review process for the Baldrige Award is the best, most cost-effective and comprehensive business health audit you can get.”
  16. philosophy
    a belief accepted as authoritative by some group or school
    Total quality management (TQM) is an integrated, organization-wide strategy for improving product and service quality. TQM is not a specific tool or technique. Rather, TQM is a philosophy or overall approach to management that is characterized by three principles: customer focus and satisfaction, continuous improvement, and teamwork.
  17. variation
    an artifact that deviates from a norm or standard
    Besides higher customer satisfaction, continuous improvement is usually associated with a reduction in variation. Variation is a deviation in the form, condition, or appearance of a product from the quality standard for that product.
  18. mutually
    in a shared manner
    Customer focus and satisfaction, continuous improvement, and teamwork mutually reinforce each other to improve quality throughout a company.
  19. intensive
    tending to give force or emphasis
    In other words, services are almost always labor-intensive: Someone typically has to perform the service for you.
  20. perishable
    subject to destruction or death or decay
    Third, services are perishable and unstorable.
  21. delivery
    the act of bringing or distributing something
    When mistakes are made, when problems occur, and when customers become dissatisfied with the service they’ve received, service businesses must switch from the process of service delivery to the process of service recovery, or restoring customer satisfaction to strongly dissatisfied customers.
  22. surpass
    be or do something to a greater degree
    Service recovery sometimes requires service employees to not only fix whatever mistake was made but also perform heroic service acts that delight highly dissatisfied customers by far surpassing their expectations of fair treatment.
  23. manufacture
    put together out of artificial or natural components
    Manufacturing operations can be classified according to the amount of processing or assembly that occurs after a customer order is received.
  24. assemble
    create by putting components or members together
    A make-to-order operation does not start processing or assembling products until it receives a customer order.
  25. module
    a self-contained component used in combination with others
    A company using an assemble-to-order operation divides its manufacturing or assembly process into separate parts or modules. The company orders parts and assembles modules ahead of customer orders. Then, based on actual customer orders or on research forecasting what customers will want, those modules are combined to create semicustomized products.
  26. forecast
    a prediction about how something will develop
    Because parts are ordered and products are assembled before customers order the products, make-to-stock operations are highly dependent on the accuracy of sales forecasts. If sales forecasts are incorrect, make-to-stock operations may end up building too many or too few products, or they may make products with the wrong features or without the features that customers want.
  27. operation
    a process involved in a particular form of work
    A second way to categorize manufacturing operations is by manufacturing flexibility, meaning the degree to which manufacturing operations can easily and quickly change the number, kind, and characteristics of products they produce.
  28. discrete
    constituting a separate entity or part
    By contrast, in continuous-flow production, products are produced continuously rather than at a discrete rate.
  29. linear
    involving a single dimension
    Line-flow production processes are preestablished, occur in a serial or linear manner, and are dedicated to making one type of product.
  30. batch
    a collection of things or persons to be handled together
    The next most flexible manufacturing operation is batch production, which involves the manufacture of large batches of different products in standard lot sizes.
  31. handle
    manage effectively
    Job shops are typically small manufacturing operations that handle special manufacturing processes or jobs. In contrast to batch production, which handles large batches of different products, job shops typically handle very small batches, some as small as one product or process per batch.
  32. possession
    the act of having and controlling property
    Inventory is the amount and number of raw materials, parts, and finished products that a company has in its possession.
  33. aggregate
    a sum total of many heterogeneous things taken together
    Average aggregate inventory for a month can be determined by simply averaging the inventory counts at the end of each business day for that month. One way companies know whether they’re carrying too much or too little inventory is to compare their average aggregate inventory with the industry average for aggregate inventory.
  34. supply
    an amount of something available for use
    The automobile industry records inventory in terms of days of supply, but most other industries measure inventory in terms of weeks of supply, meaning the number of weeks it would take for a company to run out of its current supply of inventory.
  35. replenish
    fill something that had previously been emptied
    If company A turns its inventories twenty-six times a year, it will completely replenish its inventory every two weeks and have an average inventory of 20,000 widget parts and raw materials. By contrast, if company B turns its inventories only two times a year, it will completely replenish its inventory every twenty-six weeks and have an average inventory of 260,000 widget parts and raw materials.
  36. bid
    a formal proposal to buy at a specified price
    Ordering cost is not the cost of the inventory itself but the costs associated with ordering the inventory. It includes the costs of completing paperwork, manually entering data into a computer, making phone calls, getting competing bids, correcting mistakes, and simply determining when and how much new inventory should be reordered.
  37. obsolescence
    falling into disuse or becoming out of date
    Holding cost includes the cost of storage facilities, insurance to protect inventory from damage or theft, inventory taxes, the cost of obsolescence (holding inventory that is no longer useful to the company), and the opportunity cost of spending money on inventory that could have been spent elsewhere in the company.
  38. minimum
    the least possible
    This goal seeks a minimum level of inventory.
  39. associate
    bring or come into action
    By having parts arrive just in time, the manufacturer has little inventory on hand and thus avoids the costs associated with holding inventory.
  40. material
    things needed for doing or making something
    A third method for managing inventory is materials requirement planning (MRP). MRP is a production and inventory system that, from beginning to end, precisely determines the production schedule, production batch sizes, and inventories needed to complete final products.
Created on October 31, 2016 (updated November 11, 2016)

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