chapter 23 the nature of operations Flashcards
intellectual capital
the intangible capital of a business that includes human capital ( well-trained and skilled employees) , structural capital (databases and information systems) and relational capital (good links with suppliers and customers)
transformational process
an activity or group of activities that transforms one or more inputs, adds value to them , produces output for customers
productivity
the ratio of outputs to inputs during production ex output per worker per time period
level of production
the number of units produced during a time period
production
the process that transforms inputs into outputs
efficiency
producing output at the highest ratio of output to input
effectiveness
meeting the objectives of the business by using inputs productively to meet customers’ needs
sustainability of operations
business operations that can be maintained in the long term , for ex , by protecting the environment and not damaging the quality of life for future generations
labour intensive
involving a high level of labour input compared with capital equipment
capital intensive
involving a high quantity of capital equipment compared with labour input
job production
the production of a one-off item specially designed for the customer
batch production
the production of a limited number of identical products- each item in the batch passes through one stage of production before passing on to the next stage
flow production
the production of items in a continually moving process
mass customisation
the use of flexible computer- aided technology on production lines to make products that meet individual customers’ requirements for customised products
