service flow analysis: An analysis that shows the process flows that are necessary to provide a service to customers; it
allows managers to determine which processes are necessary.
service operations: Production activities that yield tangible and intangible service products.
standardization: Using standard and uniform components in the production process.
supplier selection: Finding and determining suppliers to buy from.
synthetic process: Any production process in which resources are combined.
time utility: That quality of a product satisfying a human want because of the time at which it is made available.
transportation: The means of transporting resources to the company and finished goods to buyers.
U-shaped production line: Production layout in which machines are placed in a narrow U shape rather than a straight
utility: The power of a product to satisfy a human want; something of value.
warehousing: The storage of both incoming materials for production and finished goods for physical distribution to
benchmarking: Comparing the quality of the firm's output with the quality of the output of the industry's leaders.
business process re-engineering: Redesigning of business processes to improve performance, quality, and productivity.
competitive product analysis: Process by which a company analyzes a competitor's products to identify desirable
continuous improvement: The ongoing commitment to improve products and processes, step by step, in pursuit of ever-
increasing customer satisfaction.
control chart: A statistical process control method in which results of test sampling of a product are plotted on a diagram
that reveals when the process is beginning to depart from normal operating conditions.
employee empowerment: Principle that all employees are valuable contributors to a firm's business and should be
entrusted with decisions regarding their work.
external failures: Allowing defective products to leave the factory and get into consumers' hands.
internal failures: Expenses incurred during production and before bad product leaves the plant.
ISO 14000: Certification program attesting to the fact that a factory, laboratory, or office has improved environmental
ISO 9000: Program certifying that a factory, laboratory, or office has met the quality management standards of the
International Organization for Standardization.
labour productivity: Partial productivity ratio calculated by dividing gross domestic product by total number of workers.
level of productivity: The dollar value of goods and services produced by each worker.
performance quality: The overall degree of quality; how well the features of a product meet consumers' needs and how
well the product performs.
process variation: Any change in employees, materials, work methods, or equipment that affects output quality.
productivity: A measure of efficiency that compares how much is produced with the resources used to produce it.
quality improvement (QI) team: TQM tool in which groups of employees work together to improve quality.
quality ownership: The concept that quality belongs to each employee who creates or destroys it in producing a good or
service; the idea that all workers must take responsibility for producing a quality product.
quality reliability: The consistency of quality from unit to unit of a product.
quality/cost study: A method of improving product quality by assessing a firm's current quality-related costs and
identifying areas with the greatest cost-saving potential.
quality: A product's fitness for use in terms of offering the features that consumers want.
statistical process control (SPC): Statistical analysis techniques that allow managers to analyze variations in production
data and to detect when adjustments are needed to create products with high quality reliability.
supply chain management (SCM): Principle of looking at the chain as a whole to improve the overall flow through the
supply chain: Flow of information, materials, and services that starts with raw-materials suppliers and continues through
other stages in the operations process until the product reaches the end customer.