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
