Operations Flashcards
breakeven point
the level at which a firm matches total costs and total revenues
carbon footprint
the amount of carbon produced and entering the environment from operations processes
carbon pricing
putting a price on carbon
compliance costs
expenses associated with meeting the requirements of legal regulations i.e. abiding by all laws
corporate social responsibility (CSR)
open and accountable business actions based on respect for people, society and the broader environment
cost-based competition
derived from determining
breakeven point and then applying strategies to create cost advantages over competitors
environmental sustainability
the idea that business operators should be shaped around practices that consume resources today without compromising access to those resources for future generations
fiduciary
a person in a position of financial trust with respect to others’ money
fixed costs
costs that do not change regardless of the level of business activity
globalisation
the removal of barriers of trade, increasing integration and a high degree of transfer of capital, labour and resources between nations
global web
the network of suppliers a business has chosen on the basis of lowest cost, lowest risk and maximum certainty in quality and timing of supplies
innovation
when a business creates novel (new) products and in doing so leads the market
offshore outsourcing
the use of overseas businesses as the outsourcing provider
onshore outsourcing
the use of domestic businesses as the outsourcing provider
outsourcing
the use of outside specialists to undertake one or more key business functions
quality
how well designed, made and functional goods are, and the degree of competence with which services are organised and delivered
reverse engineering
a process that involves taking an existing product, taking it apart and then producing an imitation version using different materials at a lower cost
supply chain
the range of suppliers a business has and the nature of its relationship with those suppliers
technology
the design, construction and/or application of innovative devices, methods and machinery upon operations processes
variable costs
costs that vary in direct relationship to the level of business activity (level of production)
