Dictionary Operations

Question 1

Economies of Scale

Answer 1

Refers to cost advantages that can be created as a result of an increase in scale of business operations. Typically the cost savings come from being able to purchase lower cost per unit of input and from improved efficiencies created through improved use of technology and machinery.

Question 2

Globalisation

Answer 2

The integration of different national economies into a single market where goods and services can easily be trade and the development of a world economy owing to the increasing flow of goods, services, people, finance and information around the world

Question 3

Supply chain

Answer 3

The range of suppliers a business has and the nature of its relationship with those suppliers

Question 4

Global Web

Answer 4

The network of suppliers a business has chosen on the basis of overall lowest cost, lowest risk and maximum certainty in quality and timing of supplies

Question 5

Cost-Based Competition

Answer 5

Derived from determining the break-even point (the level at which the firm matches total costs and total revenue) and then applying strategies to create cost advantages over competitors

Question 6

Compliance Costs

Answer 6

The expenses associated with meeting the requirements of legal regulation ie. abiding by all the laws

Question 7

Corporate Social Responsibility

Answer 7

Open and accountable business actions based on respect for people, community/society and the broader environment. It involves businesses doing more than just complying with laws and regulations

Question 8

Sequencing

Answer 8

Refers to the order in which activities in the operations process occur

Question 9

Scheduling

Answer 9

Refers to the length of time activities take within the production process

Question 10

Computer Aided Design (CAD)

Answer 10

A computerised design tool that allows businesses to create product possibilities in the form of a three dimensional diagram from a series of input parameters

Question 11

Computer Aided Manufacturing (CAM)

Answer 11

A software that controls manufacturing processes allowing them to become computer controlled. It can be linked to CAD software to allow the instantaneous manufacturing of designs that are accepted by clients

Question 12

Task Design

Answer 12

Classifying job activities in ways that make it easy for an employee to successfully perform and complete a task

Question 13

Skills Audit

Answer 13

A formal process used to determine to the present level of skilling and any skill shortfalls that need to be made up either through recruitment or through training

Question 14

Monitoring

Answer 14

The process of measuring actual performance against planned performance

Question 15

Control

Answer 15

Occurs when KPI’s are assessed against predetermined targets and corrective action is taken if required

Question 16

Improvement

Answer 16

Refers to systematic reduction of inefficiencies and wastage, poor work processes and the elimination of bottlenecks

Question 17

Bottleneck

Answer 17

An aspect of the transformation process that slows down the overall processing speed or creates an impediment leading to a backlog of incompletely processed products

Question 18

Warranty

Answer 18

A promise made by a business that they will correct any defects in the goods they produce or the services they deliver

Question 19

Speed

Answer 19

Refers to the time is takes for the production and operations process to respond to changes in market demand

Question 20

Dependability

Answer 20

Refers to how consistent and reliable a business’ products are

Question 21

Flexibility

Answer 21

Refers to how quickly operations processes can adjust to changes in the market

Question 22

Customisation

Answer 22

Refers to the creation of individualised products to meet the specific needs of the customers

Question 23

Cost

Answer 23

Refers to the minimisation of expenses so that operations processes are conducted as cheaply as possible

Question 24

Explicit service

Answer 24

The tangible aspect of the service being provided such as the application of time, expertise, skill and effort

Question 25

Implicit service

Answer 25

Based on a feeling and is therefore intangible. The implicit aspects of a service are the psychological wellbeing - the feeling that comes from being looked after – that comes with the provision of a service

Question 26

Supply Chain Management

Answer 26

Involves integrating and managing the flow of supplies throughout the inputs, transformation processes (throughput and value adding) and outputs in order to best meet the needs of customers

Question 27

Global Sourcing

Answer 27

A broad term that refers to businesses purchasing supplies or services without being constrained by location. In the supply chain management activity, global sourcing means buying or sourcing from wherever the suppliers are that best meet the sourcing requirements

Question 28

E-procurement

Answer 28

The use of online systems to manage supply, thus allowing suppliers direct access to the business’s level of supplies

Question 29

Logistics

Answer 29

A term broadly referring to distribution but includes transportation (including transportation modes), the use of storage, warehousing and distribution centres, materials handling and packaging

Question 30

Quality Management

Answer 30

Refers to those processes that a business undertakes to ensure consistency, reliability, safety and fitness for purpose of a product

Question 31

Quality Control

Answer 31

Involves the use of inspections at various points in the production process to check for problems and defects

Question 32

Quality Assurance

Answer 32

Involves the use of a system to ensure that set standards are achieved in production