Finance Flashcards
cost leadership
to aim to have the lowest costs or be most competitive in the market
good/service differentiation
distinguishing products from competitors
standardised good/service
mass produced, uniform in design and quality eg. G.P, Coca-Cola
customised good/service
niche market, vary to meet customer needs eg. physio, a logo
perishable good
short life span as they are consumed quickly. They are relatively inexpensive and bought on a regular basis. eg. fruit and veg
non-perishable good
more durable than perishable good, eg motor vehicles
intermediate good
processed more than once eg. screws are made then used to build tv remote
Interdependence
the mutual dependence that the key functions have on each other
Globalisation
refers to the removal of barriers of trade between nations.
technology
the design, construction and/or application of innovative devices, methods and machinery upon operations processes
quality
how well designed, made + functional products are + the competency in which services are delivered
cost-based competition
determining the break-even point + applying strategies to create cost advantages over competitors
fixed costs
do not change regardless of level of B activity.
variable costs
change in direct level of B activity (production).
legal regulation
laws that influence how the business must be run eg. Work Health and Safety (WHS) Act 2011 (Cwlth).
compliance costs
expenses asscoiated with meeting legal regulations ie. abiding by all laws
environmental sustainability
sustainable use of renewable resources and a reduction in the use of non- renewable resources.
corporate social responsibility
businesses doing more than just complying with the laws and regulations.
open and accountable business actions based on respect
for people, community/society etc.
outsourcing
the use of outside specialists to undertake one or more key business functions.
inputs
the resources used in the transformation (production) process.
transformed resources
inputs that are changed or converted in the operations process.
transforming resources
inputs that carry out the transformation process.
transformation
the conversion of inputs to outputs
lead time
the time it takes for an order to be fulfilled from the moment it is made.
sequencing
the order in which activities in the operations process occur.
scheduling
the length of time activities take within the operations process.
Gantt Chart
type of bar chart that shows both the scheduled and completed work over a period of time.
Critical Path Analysis
scheduling method that shows the shortest length of time it takes to complete all tasks necessary
Computer aided design
allows businesses to create product possibilities from a series of input parameters.
computer aided manufacturing
software that controls manufacturing processes
task design
organising jobs for employees that are trained in that specific job classification.
process layout
arrangment of machines and equipment by the function they perform
monitoring
measuring planned performance against actual performance.
control
when KPIs are measured against predetermined targers and corrective action is taken if required.
improvement
systematic reduction of inefficiencies and wastage, etc
continous improvement
ongoing commitment to achieving perfection (kaizen)
outputs
the product, the end result
customer service
how well the business meets and exceeds customer expectations
warranties
promise made by a business to correct any defects/ in the good/service
performance objectives
goals relating to particular aspects of the transformation process
