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BADM 1020: Chapter 9

Terms

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Operations Management
All activities managers engage in to produce goods and services
Analytic Process
A process in operations management in which raw materials are broken into different component parts
Synthetic Process
A process in operations mgmt in which raw materials or components are combined to create a finished product
Utility
The ability of a good or service to satisfy a human need.
Form Utility
Utility created by converting raw materials, people, finances, and information into finished products
Research and Development
A set of activites intended to identify new ideas that have the potential to result in new goods and services
Design Planning
The development of a plan for converting a product idea into an actual product
Product Line
A group of similar products that differ only in relatively minor characteristics
Product Design
The process of creating a set of specifications from which a product can be produced
Capacity
The amount of products or services that an organization can produce in a given time
Labor-Intensive Technology
A process in which people must do most of the work
Capital-Intensive Technology
A process in which machines and equipment do most of the work
Service Economy
An economy in which more effort is devoted to the production of services than to the production of goods
Plant Layout
The arrangement of machinery, equipment and personnel within a production facililty
Planning Horizion
The period during which a plan will be in effect
Purchasing
All of the activities involved in obtaining materials, supplies and parts from other firms
Inventory Control
The process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock out costs

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