Operations definitions Flashcards
Warranty
A promise made by a business that they will correct any defects in the goods they produce or services they deliver.
Customisation
Refers to the creation of individualised products to meet the specific needs of the customers.
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.
Supply chain management
Involves integrating and managing the flow of supplies throughout the inputs, transformation processes and outputs in order to best meet the needs of customers.
B2B
Direct access from one business to another, allowing the supplier to access the needs of the buyer and meet them in a timely manner.
Quality management
Those processes that a business undertakes to ensure consistency, reliability, safety and fitness of purpose of product.
Quality control
Involves the use of inspections are various points in the production process to check for problems and defects.
Quality assurance
Involves the use of a system to ensure that set standards are achieved in production.
Quality improvement
An ongoing commitment to improving a business’ goods or services.
Product layout
Layout in which the equipment arrangement relates to the sequence of tasks performed in manufacturing a product.
Economies of scale
Refers to the cost savings that occur as a result of an increase in the scale of a business’ operations.
Transformed resources
Those inputs that are converted in the operations process.
Cost leadership
Involves aiming the have the lowest costs or to be the most price-competitive business in the market.
Good/service differentiation
Distinguishing products in some way from those of competitors.
Task design
Involves classifying job activities in ways that make it easy for an employee to successfully perform and complete the task.
Global sourcing
A broad term that refers to businesses purchasing supplies or services without being constrained by location.
Customer service
refers to how well a business meets and exceeds the expectations of customers in all aspects of its operations.
Operations
The business processes that involve transformation or, more generally, ‘production’.
Technology
The design, construction and/or application of innovative devices, methods and machinery upon operations processes.
Monitoring
The process of measuring actual performance against planned performance.
Outsourcing
Involves the use of outside specialists to undertake one or more key business functions.
Globalisation
The removal or barriers of trade between nations.
Transforming resources
Those inputs that carry out the transformation process.
Process layout
the arrangement of machines so that the machines and equipment are grouped together by the function they perform.
Environmental sustainability
means that business operations should be shaped around practices that consume resources today without compromising access to those resources for future generations.
Quality
Specific reference to how well designed, well made and functional goods are or the degree of competence with which services are organised and delivered.
Dependability
Refers to how consistent and reliable a business’ products are.
Cost
Refers to the minimisation of expenses so that operations processes are conducted as cheaply as possible.
Flexibility
How quickly operations processes can adjust to changes in the market.
Control
Occurs when KPIs are assessed against predetermined targets and corrective action is taken if required.
Cost-based competition
Derived from determining the break even point and then applying strategies to create cost advantages over competitors.
B2C
The selling of goods and services to consumers over the internet.
Logistics
A term broadly referring to distribution but includes transportation, the use of storage, warehousing and distribution centres, materials handling and packaging.
Fixed position layout
Where a product remains in one location due to its weight or bulk and employees and equipment come to the product.
Improvement
Refers to the systematic reduction of inefficiencies and wastage, poor work processes and the elimination of any bottlenecks.
