Operations Management Flashcards
What is output?
The output of a business is the total amount produced in a
given time period.
Define inventory
Inventory refers to the stocks held in a business, such as materials and semi-finished goods.
What is operations management?
Operations management oversees the planning, co- ordination and control of the transformation process, turning resources (inputs) into outputs.
Define productivity
Productivity measures the output per hour, per person or per machine.
Define ‘sustainable operations’
Sustainable activities are those that meet the needs of the business or of society without compromising on the ability to meet future needs.
Define Capital intensive
Capital-intensive production means there is a high proportion of capital (for example, machinery) used relative to other factors of production.
Define Labour intensive
Labour-intensive production means there is a relatively high proportion of labour (employees) used relative to other factors of production.
What is job production
This involves one-off production. Each item is unique for each customer, which means that production is very flexible
What is batch production
This occurs when items move together from one stage of a process to another.
What is flow production?
This involves large-scale production using production-line technology. It is capable of huge volumes (for example, of cans of beans or bottles of water) but produces relatively standardised products. Products ‘flow’ from one stage to another
What is mass customization?
This is a relatively new development made possible by technological advances. This type of process is on a large scale but, whereas mass production usually lacks flexibility, this technology enables a variety of models to be produced on the same production line
What is buffer inventory
Buffer inventory is the minimum-amount of inventory a business wants to hold just in case of problems.
What is lead time?
The lead time-is how long it take from ordering the supplies from a supplier to them arriving at the business
What is the reorder level?
The-reorder level-is the amount of inventory left at which a business needs to place an order so that the new inventories arrive before the business goes below its buffer level.
Define supply chain
The supply chain refers to all the different stages involved in making, distributing and selling a good or service, beginning with the material through to the production of parts, through to the distribution and sale of the product.
Define supply chain management
Supply chain management involves managing the flow of goods and services, and includes the different processes that transform raw materials into final products.
What is lean production
Lean production is an approach that continually seeks to reduce any form of wastage in the production process.
What is just-in-time production
Just-in-time production occurs when firms produce products to order.
Define capacity
Capacity measures the maximum amount of output a
firm can produce at a given moment with its existing resources.
What is capacity utilization
Capacity utilisation measures the existing output relative to the maximum possible output.
What is capacity under-utilization
Capacity under-utilisation occurs when a business is producing less than the maximum amount it, given its existing resources.
What is rationalization
Rationalisation occurs when a business reduces the scale of its operations and reduces its capacity level.
What is subcontracting?
Subcontracting occurs when one business employs another business to undertake some of the work.
Define outsourcing
Outsourcing occurs when the business uses other producers to undertake some of its operations.
