The nature of operations Flashcards
Definitions
Intellectual capital
Intangible capital of the business that includes human capital, structural capital and relational capital.
Transformational process
An activity/group of activities that transforms one or more inputs, adds value to them, and produces outputs for customers.
Productivity
The ratio of outputs to inputs during production, e.g. output per worker per time period.
Level of production
The number of units produced during a time period.
Production
The process that transforms inputs into outputs.
Labour productivity
Total output in a given time period/ Total workers employed
Capital productivity
Output/Capital equipment
Efficiency
Producing output at the highest ratio of output to input.
Effectiveness
Meeting the objectives of the business by using inputs productively to meet customers’ needs.
Sustainability of operations
Business operations that can be maintained in the long term, for example, by protecting the environment and not damaging the quality of life for future generations.
Labour intensive
Involving a high level of labour input compared with capital equipment.
Capital intensive
Involving a high quantity of capital equipment compared with labour intput.
Job production
The manufacturing of a one-off item specially designed for the customer.
Batch production
The manufacturing of a limited number of identical products-each item in the batch passes through one stage of production before passing on to the next stage.
Flow production
The manufacturing of items in a continually moving process.
