HSC Topic 1 Flashcards
operations
the business processes that involve transformation or, more generally, ‘production’
strategic
refers to long-term, broad aims affecting all key business areas; that is, the strategic role of each key business function involves the managers of each function contributing to the strategic direction or strategic plan of the business
cost leadership
involves aiming to have the lowest costs or to be the most price-competitive in the market
product differentiation
distinguishing products (goods or services) in some way from those of competitors
cost centres
particular areas, departments or sections of a business to which costs can be directly attributed
cost leadership
involves aiming to have the lowest costs or to be the most price-competitive in the market
economies of scale
Cost advantages that can be created as a result of an increase in the scale of business operations
standardisation
refers to the making of products that are homogenous or identical
product differentiation
distinguishing products (goods or services) in some way from those of competitors
performance objectives
goals that relate to particular aspects of the transformation processes
quality (performance objective)
determined by consumer expectations and informs the product standards applied by the business
speed
refers to the time it takes for the production and the operations process to respond to changes in market demand
dependability
refers to how consistent and reliable a business’s products are
flexibility
how quickly operations processes can adjust to changes in the market
customisation
refers to creation of individualised products to meet the specific needs of the customers
mass customisation
a process that allows a standard, mass-produced item to be personally modified to specific customer requirements
cost
as a performance objective, refers to the minimisation of expenses so that operations processes are conducted as cheaply as possible
standardised goods
those that are mass produced, usually on an assembly line. Standardised goods are uniform in quality and meet a predetermined level of quality. They are generally produced with a production focus
customised goods
those that are varied according to the needs of customers. These goods are produced with a market focus rather than a production focus
interdependence
the mutual dependence that the key business functions have on one another
globalisation
refers to the removal of barriers of trade between nations. Globalisation is characterised by an increasing integration between national economies and a high degree of transfer of capital (facilities and/or machinery), labour, intellectual capital and ideas, financial resources and technology
offshore outsourcing
involves taking the activities to a provider in another country
technology
the design, constructure and/or application of innovative devices, methods and machinery in operations processes
quality (expectations)
a specific reference to how well designed, well made and functional goods are, and the degree of competence with which services are organised and delivered
cost-based competition
derived from determining breakeven point (the level at which the firm’s total revenue is exactly equal to its total costs) and applying strategies to create cost advantages over competitors
government policies
are announced intentions by government as to future laws
legal regulation
laws which been passed by government
compliance costs
the expenses associated with meeting the requirements of legal regulations, i.e., abiding by all laws
Work Health and Safety Act 2011 (Cwlth)
Requires businesses to create safe + healthy working conditions
Fair Work Act 2009 (Cwlth)
Laws about staff employment terms + conditions (e.g., overtime, rest breaks) must be followed
Environmental Protection and Biodiversity Conservation Act 1999 (Cwlth)
Sets standards for waste management and specifies protected areas free from exploitation
Workers Compensation Act 1987 (NSW)
Forces compulsory payments of insurance premiums to ensure payment of any injuries acquired by employees while working at the firm
Food Act 2003 (NSW)
Councils and NSW Food Authority conduct regular inspections to ensure good food safety practices are in place (temperature control, cleanliness, hand washing, labelling)
Environmental sustainability
to shape business operations around practices that consume resources today without compromising access to those resources for future generations
Carbon footprint
the amount of carbon produced and entering the environment from operations processes
Precautionary principle
requires that, where environmental impacts are uncertain, a business undertakes actions that are most likely to cause the least environmental impact
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 the laws and regulations
legal compliance
businesses abiding by word of the law
ethical responsibility
encompasses a much broader integration of social, community and environmental concerns
environmental sustainability
refers to the economic, social and environmental performance of a business
social responsibility
refers to a business’s management of the social, environmental, political and human consequences of its actions
inputs
the resources used in the transformation (production) process
transformed resources
those inputs that are changed or converted in the operations process
transforming resources
those inputs that carry out the transformation process
materials
the basic elements used in the production process, consisting of two types: raw materials and intermediate goods
raw materials
the essential substances in their unprocessed state
intermediate goods
goods manufactured and used in further manufacturing or processing
information
the knowledge gained from research, investigation and instruction, which results in an increase in understanding
key performance indicators (KPIs)
specific criteria used to measure the efficiency and effectiveness of the business’s performance
customer relationship management (CRM)
the systems that businesses use to maintain customer contact
facilities
the plant (factory or office) and machinery used in the operations processes
volume
how much of a product is made
lead time
the time it takes for an order to be filled from the moment it is made
mix flexibility
the mix of products made or services delivered, through the information process
sequencing
the order in which activities in the operations process occur
scheduling
the length of time activities take within the operations process
Gantt charts
a type of bar chart that shows both the scheduled and completed work over a period of it time. It is often used in planning and tracking a project
critical path analysis
a scheduling method or technique that shows what tasks need to be done, how long they take and what order is necessary to complete those tasks
robotics
used in engineering and specialised areas of research, as well as on assembly lines where a programmable machine capable of doing several different tasks is required
computer-aided design (CAD):
a computerised design tool that allows businesses to create product possibilities from a series of input parameters
computer-aided manufacturing (CAM)
software that controls manufacturing processes
skills audit
a formal process used to determine the present level of skilling and any skill shortfalls that need to be made up either through recruitment or training
task design
involves classifying job activities in ways that make it easy for an employee to successfully perform and complete the task
process production
deals with high-variety, low volume production
process layout
the arrangement of machines so that the machines and equipment are grouped together by the function (or process) they perform
product production
(mass production) production that is characterised by the manufacturing of a high volume of constant quality goods
process layout
layout in which the equipment arrangement relates to the sequence of tasks performed in manufacturing a product
project production
deals with layout requirements for large-scale, bulky activities such as the construction of bridges, ships, aircraft or buildings
fixed position layout
an operational arrangement in which employees and equipment come to the product
workstations
the desk areas required by office workers, usually fitted with access to a computer monitor, keyboard, telephone, mouse and mouse pad and storage, and close access to a printer and scanner
monitoring
the process of measuring actual performance against planned performance
control
occurs when KPIs are assessed against predetermined targets and correction action is taken if required
improvement
refers to systematic reduction of inefficiencies and wastage, poor work processes and the elimination of any bottlenecks
outputs
the end result of the business efforts- the good or service that is provided or delivered to the customer
customer service
refers to how well a business meets and exceeds the expectations of customers in all aspects of its operations
warranty
a promise made by a business that they will correct any defects in the goods they produce or services they deliver
product utility
the usefulness and value that a product has from the consumer’s point of view
explicit service
the tangible aspect of the service being provided, such as the application of time, expertise, skill effort
implicit service
is based on a feeling and is therefore intangible. The implicit aspects of a service are the psychological wellbeing- the feeling of being looked after- that comes with the provision of the service
supply chain management
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
sourcing
the purchasing of inputs for the transformation process
global sourcing
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
vertical integration
when a business makes all the inputs in-house with no external contribution
e-commerce
the buying and selling of goods and services via the internet
e-procurement
the use of online systems to manage supply, which allows suppliers direct access to the business’s level of supplies
B2B
direct access from one business (the supplier) to another
B2C
the selling of goods and services to consumers over the internet, with payment usually by credit card
