operations management The total set of managerial activities used by an organization to transform resource inputs into products, services or both

manufacturing A form of business that combines and transforms resource inputs into tangible outcomes

service organization An organization that transforms resources into services

product-service mix How many and what kinds of products or services (or both) to offer

capacity The amount of products, services, or both that can be produced by an organization

facilities The physical locations where products or services are created, stored, and distributed

location The physical positioning or geographic site of facilities

layout The physical configuration of facilities, the arrangement of equipment within facilities, or both

product layout A physical configuration of facilities arranged around the product; used when large quantities of a single product are needed

process layout A physical configuration of facilities arranged around the process; used in facilities that create or process a variety of products

fixed-position layout A physical configuration of facilities arranged around a single work area; used for the manufacture of large and complex products such as airplanes

cellular layout A physical configuration of facilities used when families of products can follow similar flow paths

technology The set of processes and systems used by organizations to convert resources into products or services

automation The process of designing work so that it can be completely or almost completely performed by machines

computer assisted manufacturing A technology that relies on computers to design or manufacture products

robot Any artificial device that is able to perform functions ordinarily thought to be appropriate for human beings

supply chain management The process of managing operations control, resource acquisition, and inventory so as to improve overall efficiency and effectiveness

purchasing management Buying materials and resources needed to produce products and services

inventory control Managing the organization's raw materials, work-in-process, finished goods, and products in-transit

just-in-time (JIT) method An inventory system that has necessary materials arriving as soon as they are needed (just in time) so that the production process is not interrupted

quality The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs

Malcolm Balridge Award Named after a former Secretary of Commerce, this prestigious award is given to firms that achieve major quality improvements

total quality management (TQM) A strategic commitment by top management to change its whole approach to business to make quality a guiding factor in everything it does

benchmarking The process of learning how other firms do things in an exceptionally high quality manner

outsourcing Sub-contracting services and operations to other firms that can perform them cheaper and/or better

speed The time needed by the organization to get its activities, including developing, making, and distributing products or services accomplished

ISO 9000 A set of quality standards created by the International Organization for Standardization

statistical quality control (SQC) A set of specific statistical techniques that can be used to monitor quality; includes acceptance sampling and in-process sampling

productivity An economic measure of efficiency that summarizes what is produced relative to resources used to produce it