Chapter 1 Key Terms


Agility (24): The ability of an organization to respond quickly to demands or opportunities.


Craft Production (19): System in which highly skilled workers use simple, flexible tools to produce small quantities of customized goods.


Division of Labor (20): Breaking up a production process into small tasks, so that each worker performs a small portion of the overall job.


E-Business (22): Use of the internet to transact business.


E-Commerce (22): Consumer-to-business transactions.


Interchangeable Parts (20): Parts of a product made to such precision that they do not have to be custom fitted.


Lead Time (17): The time between ordering a good or service and receiving it.


Lean Production (25): System that uses minimal amounts of resources to produce a high volume of high-quality goods with some variety.


Mass Production (20): System in which low skilled workers use specialized machinery to produce high volumes of standardized goods.


Model (12): An abstraction of reality; a simplified representation of something.


Operations Management (4): The management of systems or processes that create goods and/or provide services.


Pareto Phenomenon (15): A few factors account for a high percentage of the occurance of some events.


Supply Chain (23): A sequence of activities and organizations involved in producing and delivering a good or service.


System (14): A set of interrelated parts that must work together.


Value Added (5): The difference between the cost of inputs and the value or price of outputs.