Operations definitions

Question 1

Warranty

Answer 1

A promise made by a business that they will correct any defects in the goods they produce or services they deliver.

Question 2

Customisation

Answer 2

Refers to the creation of individualised products to meet the specific needs of the customers.

Question 3

Corporate social responsibility

Answer 3

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.

Question 4

Supply chain management

Answer 4

Involves integrating and managing the flow of supplies throughout the inputs, transformation processes and outputs in order to best meet the needs of customers.

Question 5

B2B

Answer 5

Direct access from one business to another, allowing the supplier to access the needs of the buyer and meet them in a timely manner.

Question 6

Quality management

Answer 6

Those processes that a business undertakes to ensure consistency, reliability, safety and fitness of purpose of product.

Question 7

Quality control

Answer 7

Involves the use of inspections are various points in the production process to check for problems and defects.

Question 8

Quality assurance

Answer 8

Involves the use of a system to ensure that set standards are achieved in production.

Question 9

Quality improvement

Answer 9

An ongoing commitment to improving a business’ goods or services.

Question 10

Product layout

Answer 10

Layout in which the equipment arrangement relates to the sequence of tasks performed in manufacturing a product.

Question 11

Economies of scale

Answer 11

Refers to the cost savings that occur as a result of an increase in the scale of a business’ operations.

Question 12

Transformed resources

Answer 12

Those inputs that are converted in the operations process.

Question 13

Cost leadership

Answer 13

Involves aiming the have the lowest costs or to be the most price-competitive business in the market.

Question 14

Good/service differentiation

Answer 14

Distinguishing products in some way from those of competitors.

Question 15

Task design

Answer 15

Involves classifying job activities in ways that make it easy for an employee to successfully perform and complete the task.

Question 16

Global sourcing

Answer 16

A broad term that refers to businesses purchasing supplies or services without being constrained by location.

Question 17

Customer service

Answer 17

refers to how well a business meets and exceeds the expectations of customers in all aspects of its operations.

Question 18

Operations

Answer 18

The business processes that involve transformation or, more generally, ‘production’.

Question 19

Technology

Answer 19

The design, construction and/or application of innovative devices, methods and machinery upon operations processes.

Question 20

Monitoring

Answer 20

The process of measuring actual performance against planned performance.

Question 21

Outsourcing

Answer 21

Involves the use of outside specialists to undertake one or more key business functions.

Question 22

Globalisation

Answer 22

The removal or barriers of trade between nations.

Question 23

Transforming resources

Answer 23

Those inputs that carry out the transformation process.

Question 24

Process layout

Answer 24

the arrangement of machines so that the machines and equipment are grouped together by the function they perform.

Question 25

Environmental sustainability

Answer 25

means that business operations should be shaped around practices that consume resources today without compromising access to those resources for future generations.

Question 26

Quality

Answer 26

Specific reference to how well designed, well made and functional goods are or the degree of competence with which services are organised and delivered.

Question 27

Dependability

Answer 27

Refers to how consistent and reliable a business’ products are.

Question 28

Cost

Answer 28

Refers to the minimisation of expenses so that operations processes are conducted as cheaply as possible.

Question 29

Flexibility

Answer 29

How quickly operations processes can adjust to changes in the market.

Question 30

Control

Answer 30

Occurs when KPIs are assessed against predetermined targets and corrective action is taken if required.

Question 31

Cost-based competition

Answer 31

Derived from determining the break even point and then applying strategies to create cost advantages over competitors.

Question 32

B2C

Answer 32

The selling of goods and services to consumers over the internet.

Question 33

Logistics

Answer 33

A term broadly referring to distribution but includes transportation, the use of storage, warehousing and distribution centres, materials handling and packaging.

Question 34

Fixed position layout

Answer 34

Where a product remains in one location due to its weight or bulk and employees and equipment come to the product.

Question 35

Improvement

Answer 35

Refers to the systematic reduction of inefficiencies and wastage, poor work processes and the elimination of any bottlenecks.