Operations Management Jargon Flashcards
Cost Leadership
An aim to have the lowest costs or to be the most price-competitive in the market
Customised Goods
Goods that are varied according to the needs of customers
Economies of Scale
cost advantages that can be gained by producing
on a larger scale. This means that businesses can lower their per unit input
costs.
Interdependence
refers to the mutual dependence that the key functions have on one another. This means that the various business functions work best when they
work together.
Lean Production
An aim to eliminate waste at every stage of production
Operations
The business processes that involve transformation or production
Product Differentiation
The distinguishing of products (goods or services) in some way from its competitiors
self-service
where customers
are encouraged to
help themselves
standardised goods
goods that are mass
produced, usually on
an assembly line
strategic
affecting all key
business areas
transformation
the conversion of inputs
(resources) into outputs
(goods and services)
value adding
the creation of extra or
added value as inputs
are transformed into
outputs
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)
bottleneck
an aspect of the transformation process that slows down the overall processing speed or creates a backlog of incompletely processed products
capital-labour
substitution
when machinery and
technology displace
people by doing the
work instead
computer-aided
design (CAD)
a computerised design tool that allows businesses to create product possibilities from a series of input parameters
computer-aided
manufacturing
(CAM)
software that controls
the manufacturing
processes
control
when key performance indicators are assessed against predetermined targets and corrective action is taken if required
critical path analysis
CPA
a scheduling method that shows what tasks need to be done, how long they take and what order is necessary to complete those tasks
customer
relationship
management (CRM)
the systems that a
business uses to
maintain customer
contact
customer service
how well a business meets
and exceeds the expectations
of customers in all aspects of
its operations
facilities
the plant (factory or
office) and machinery
used in the operations
processes
fixed position layout
an operational
arrangement in which
employees and equipment
come to the product
Gantt chart
a type of bar chart that shows both the scheduled and completed work over a period of time, used for planning and tracking a project
improvement
the systematic reduction of
inefficiencies and wastage,
poor work processes and the
elimination of bottlenecks
information
the knowledge gained from
research, investigation and
instruction, which results in
an increase in understanding
inputs
the resources used in
the transformation
(production) process
intermediate goods
goods manufactured
and used in further
manufacturing or
processing
key performance
indicators (KPIs)
specific criteria used to
measure the efficiency and
effectiveness of the
performance of the business
lead time
the time it takes for an
order to be fulfilled from
the moment it is placed
materials
the basic elements used in the production process, consisting of two types: raw materials and intermediate goods
mix flexibility
the variety of products
made, or services
delivered through the
information process
monitoring
the process of
measuring actual
performance against
planned performance
outputs
the end result of business
efforts - the good or service
that is provided or
delivered to the customer
plant layout
the arrangement of
equipment, machinery
and staff within a facility
process layout
the arrangement of machines such that the machines and equipment is grouped together according to the function they perform
process production
production
characterised by highvariety,
low-volume jobs
product layout
where the equipment
arrangement is based on the
sequence of tasks performed
in manufacturing a product
product production
mass production
production characterised
by the manufacturing of a
high volume of constant
quality goods
project production
deals with the layout
requirements for largescale
activities such as
construction of bridges etc
raw materials
essential substances
in their unprocessed
state
robotics
highly specialised technology,
capable of complex tasks,
programmable for assembly
lines etc.
scheduling
the length of time
activities take within the
operations process
sequencing
the order in which
activities in the
operations process
occur
skills audit
a formal process used to determine the present level of skills and any skill shortfalls that need to be made up through recruitment or training
task design
classifying job activities in ways that make it easy for an employee to successfully perform and complete the task
telecommute
to travel to work electronically, allowing work to be done via email or internet from home or another location
transformation
the conversion of inputs
(resources) into outputs
(goods and services)
transformed
resources
those inputs that are
changed or converted in
the operations process
transforming
resources
those inputs that carry
out the transformation
process
volume
how much of a
product is made
warranty
a promise made by a business that they will correct any defects in the goods that they produce or in the sales that they deliver
workstations
desk areas for office workers,
usually fitted with a
computer, telephone, storage
and access to a printer
B2B
direct access from one
business (the supplier)
to another (the buyer)
B2C
the selling of goods and
services to consumers over
the internet, with payment
usually by credit card
change agent
somebody who initiates
change or facilitates the
change process
continuous
improvement
an ongoing commitment
to improve the goods
and services of a
business
cost
a performance objective related to the minimisation of expenses so that operations processes are conducted as cheaply as possible
customisation
the creation of
individualised products
to meet the specific
needs of the customers
dependability
a performance objective
related to how
consistent and reliable
the products are
distribution
the ways of getting the
goods and services to
the customer
e-commerce
the buying and selling of
goods and services via
the internet
e-procurement
the use of online
systems to manage
supply
established
technology
technology that has
been developed, widely
used and accepted
explicit service
the tangible aspect of the
service being provided, such
as the application of time,
expertise, skill and effort
first-in-first-out (FIFO)
an inventory pricing method that assumes that the first goods purchased are also the first goods sold and therefore the cost of each unit sold is the first cost recorded
flexibility
how quickly operations
processes can adjust to
changes in the market
global sourcing
buying from wherever
the suppliers are that
best meet requirements
implicit service
the intangible,
psychological wellbeing
that comes with the
provision of the service
inertia
a psychological
resistance to change
inventory or stock
the amount of raw materials, work-in-progress and finished goods that a business has on hand at any particular point in time
just-in-time (JIT)
an inventory management approach which ensures that the exact amount of material inputs will arrive only as they are needed in the operation process
kaizen
the Japanese word for "improvement", emphasising continuous improvement in all areas and levels of a business, from the CEO to the assembly line
last-in-first-out (LIFO)
an inventory pricing method that assumes that the last goods purchased are also the first goods sold and therefore the cost of each unit sold is the last cost recorded
leading edge
technology
technology that is the
most advanced or
innovative at any point
in time
logistics
a broad term referring to distribution centres, transport, storage, warehousing, materials handling and packaging
mass customisation
a process that allows a standard, mass-produced item to be personally modified to specific customer requirements
performance
objectives
goals that relate to
particular aspects of the
transformation
processes
product utility
the usefulness and value
that a product has from
the customer’s point of
view
quality assurance
QA
the use of a system to
ensure that set
standards are achieved
in production
quality control
the use of inspectors at
various points in the
production process to check
for problems and defects
quality management
processes that a business undertakes to ensure consistency, reliability, safety and fitness of purpose of product
quality of
conformance
the focus on how well the
product meets the standard
of a prescribed design with
certain specifications
redundancy
a loss of work arising from
a job skills that are no
longer required or relevant
to the workplace
six sigma
a quality management approach that seeks to identify and remove the causes of problems in the operations processes, achieving virtually defect-free production
sourcing
the purchasing of inputs
for the transformation
processes
speed
the time it takes for the
production and the
operations process to respond
to changes in market demand
storage
finding a secure place to
hold stock until it is
required
supplier
rationalisation
reducing the number
of suppliers to a
minimum
supply chain
management (SCM)
integrating and managing the flow of supplies throughout the inputs, transformation processes and outputs to best meet customer needs
total quality
management (TQM)
a concept focusing on
managing the total
business to deliver
quality to customers
warehousing
the use of warehouses
for the storage,
protection and
distribution of stock
Foreign investment
Involves capital flows from one country to another, granting extensive ownership stakes in domestic companies and assets
Foreign Direct Investment
Foreign direct investment is when an individual or business owns 10 percent or more of a foreign company’s capital
