4) Operational Decisions Flashcards
what are operational objectives
targets set for production
what is the added value formula
sales revenue - cost of brought in goods and services
what are the 4 methods of production
job
flow
batch
lean
capacity utilisation formula
(output / capacity) x 100
what is the difference between productivity and efficiency
productivity = per worker
efficiency = more output per inputs
labour productivity formula
output per period / number of employees
what is a labour intensive firms
a firm that values workers
what is a capital intensive firm
a firm that values machinery
what is quality control
assumes mistakes are unavoidable and inspectors check work
what is quality assurance
assumes mistakes are avoidable and employees check their own work
what is TQM
when the whole workforce is committed to quality
what do companies choose suppliers on
price
payment terms
quality
capacity
reliability
flexibility
