Dictionary Operations Flashcards
Economies of Scale
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.
Globalisation
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
Supply chain
The range of suppliers a business has and the nature of its relationship with those suppliers
Global Web
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
Cost-Based Competition
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
Compliance Costs
The expenses associated with meeting the requirements of legal regulation ie. abiding by all the laws
Corporate Social Responsibility
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
Sequencing
Refers to the order in which activities in the operations process occur
Scheduling
Refers to the length of time activities take within the production process
Computer Aided Design (CAD)
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
Computer Aided Manufacturing (CAM)
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
Task Design
Classifying job activities in ways that make it easy for an employee to successfully perform and complete a task
Skills Audit
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
Monitoring
The process of measuring actual performance against planned performance
Control
Occurs when KPI’s are assessed against predetermined targets and corrective action is taken if required
Improvement
Refers to systematic reduction of inefficiencies and wastage, poor work processes and the elimination of bottlenecks
Bottleneck
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
Warranty
A promise made by a business that they will correct any defects in the goods they produce or the services they deliver
Speed
Refers to the time is takes for the production and operations process to respond to changes in market demand
Dependability
Refers to how consistent and reliable a business’ products are
Flexibility
Refers to how quickly operations processes can adjust to changes in the market
Customisation
Refers to the creation of individualised products to meet the specific needs of the customers
Cost
Refers to the minimisation of expenses so that operations processes are conducted as cheaply as possible
Explicit service
The tangible aspect of the service being provided such as the application of time, expertise, skill and effort
