business unit 3 aos 3 definitions Flashcards
operations management
all the activities in which managers engage to produce goods or services
manufacturing business
a business that produces tangible goods
service business
a business that provides intangible services
inputs
resources used in the process of production
processes/transformation
the conversion of inputs into outputs or resources into services
outputs
the end results of a business’s efforts
efficency
how well a business uses resources in achieving these objectives
effectiveness
the degree to which a business has accomplished its stated objectives
business competitiveness
the ability of a business to sell products in a market.
tangibles
goods that can be touched
intangibles
services that cant be touched
website development
the creation and/or improvement of a connected group of pages on the internet that will be maintained by a business to promote and sell its products
procurement
the process of researching and selecting suppliers, establishing payment terms, negotiating contracts, and the actual purchasing of resources that are vital to the operations of the business
automated production line
comprises of machinery and equipment arranged in a sequence with components added to a good as it proceeds through each step
computer aided design (CAD)
a computerised design tool that allows a business to create product possibilities from a series of input data
computer aided manufacturing (CAM)
the use of software to direct and control manufacturing process
materials management
strategy that manages the use, storage, and delivery of materials to ensure the right amount of inputs are readily available
forecasting
a materials planning tool that relies on data from the past and present to develop a production plan in an attempt to reduce uncertainty
inventory control
a system to make sure costs are minimised and the operations system has access to the right amounts of inputs when required
just in time
a materials management strategy that ensures the right amount of material inputs will arrive only as theyre needed in the operations process
production plan
an outline of the activities undertaken to combine inputs to create goods or services
materials requirement planning
involves developing an itemised list of all materials involved in production to meet specified orders
master production schedule
a plan that details what’s to be produced and when
quality control
the use of inspections at various points in the production process to check for defects
quality assurance
the use of an external system so that a business achieves set standards in production
total quality management
an ongoing, business wide commitment to excellence thats applied to every aspect of the business’s operation
waste minimisation
a process involving the reduction of the amount of unwanted resources produced by a business in an attempt to improve the efficiency and effectiveness of operations
lean management
an approach that improves the efficiency and effectiveness of operations by eliminating waste and improving quality
pull
avoid over production
takt
rate of production needed to meet customer demand
one piece flow
values added in a smooth flow one piece at a time
zero defects
identify defects as closely as possible to where they occur
csr
managements awareness of the social and environmental consequences of its actions
environmental sustainability
a business making decisions that’ll allow it, and the rest of society, to continue to interact with the environment
global sourcing
the practice of seeking the most cost efficient inputs from overseas countries
global outsourcing
the contracting of a specific business operation to an external person/business in another country
supply chain management
range of suppliers from which the business purchases materials and resources
overseas manufacturing
the production of a good in a country different to the location of the business’s HQ
