Operations Management Flashcards
What is operations management?
Managing the production of goods and services efficiently and effectively.
Define “production.”
The process of converting raw materials into finished products.
What is job production?
Producing custom, one-off products tailored to individual customer specifications.
What is batch production?
Producing goods in batches where each batch is completed before moving on to the next.
Define “flow production.”
Continuous production of standardized products on an assembly line.
What is productivity?
Output per worker or machine over a given time period.
What is lean production?
An approach to production that seeks to minimize waste and improve efficiency.
What is quality control?
A process to ensure that products meet specified quality standards by inspecting at the end of production.
Define “quality assurance.
A process that ensures quality is built into the production process, focusing on preventing defects.
What is total quality management (TQM)?
A management approach where all employees are involved in ensuring continuous improvement of products and processes.
Define “Just-In-Time (JIT)” production.
A production strategy that reduces inventory by producing goods only as needed, minimizing waste.
What is “capacity utilization”?
The percentage of a company’s total production capacity that is being used.
What is economies of scale?
Cost advantages a business gains by increasing the scale of production, leading to lower average costs.
Define “outsourcing.”
Hiring an external company to perform certain business activities or production processes.
What is “stock control”?
The management of inventory levels to ensure that there is enough stock to meet demand without holding excess.
