Unit 3 AOS 3 - Operations Management Flashcards
Efficiency
Efficiency is how productively a business uses its resources when producing a good or service.
Effectiveness
Effectiveness is the extent to which a business achieves its stated objectives.
Inputs
Inputs are the resources used by a business to produce goods and services.
Processes
Processes are the actions performed by a business to transform inputs into outputs.
Outputs
Outputs are the final goods or services produced as a result of a business’s operations
system which are delivered or provided to customers.
Manufacturing
Manufacturing businesses use raw materials and resources to produce a finished physical good.
Service Businesses
Service businesses provide intangible products, usually with the use of specialised expertise.
Tangible
Tangible is the ability to be touched.
Capital Intensive
Capital intensive is using a
high degree of machinery and equipment during the production process.
Inventory
Inventory are resources and finished goods held as stock.
Standardised goods
Standardised goods are goods that are produced consistently and are virtually identical to one another.
Intangible
Intangible is something that cannot be touched.
Labour intensive
Labour intensive is having a high degree of employee involvement during the production process.
Computer-aided design (CAD)
Computer-aided design (CAD) is a digital design tool that enables businesses to generate and modify technical illustrations of a product.
Computer-aided manufacturing (CAM)
Computer-aided manufacturing (CAM) is a software used to control and direct the
production process by controlling machinery and equipment through a computer.
Automated Production Lines
Automated production lines are machinery and equipment which are arranged in a sequence,
and the product is developed as it proceeds through each step.
Website Development
Website development is the creation and improvement of online web pages controlled by a business that customers can use to discover information about the business and purchase their goods or services at any time.
Forecasting
Forecasting is a materials planning tool that predicts customer demand for an upcoming
period using past data and market trends.
Master Production Schedule
A master production schedule (MPS) is a plan that outlines what a business intends to produce, in its specific quantities, within a set period of time.
Materials requirement planning (MRP)
Materials requirement planning (MRP) is a process that itemises the types and quantities
of materials required to meet production targets set out in the master production schedule.
Just in time (JIT)
Just in time (JIT) is an inventory control approach that delivers the correct type and quantity of materials as soon as they are needed for production.
Quality Control
Quality control is inspections at various stages of the production process to ensure products meet designated standards and unsatisfactory products are discarded.
Reactive
Reactive is responding to a situation after something has occurred.
Quality Assurance
Quality assurance is a business achieving a certified standard of quality in its production after
an independent body assesses its operations system.
Proactive
Proactive is performing actions to prevent problems before they occur.
Total Quality Management
Total quality management (TQM) is a holistic approach where all employees are committed
to continuously improving a business’s operations system to enhance the quality for customers.
Quality Circles
Quality circles are small groups of employees who meet to discuss and create solutions to problems related to quality.
Waste Minimisation
Waste minimisation is the process of reducing the amount of unused material, time or
labour within a business.
Waste
Waste is any material or resource that is discarded because it cannot be further used in the production process.
Lean Management
Lean management is the process of systematically reducing waste in all areas of production
while improving customer value.
Pull
Pull is customers determining the amount of products a business should produce for sale.
One-Peice-Flow
One-piece-flow is a single product moving through all stages of production one at a time.
Takt
Takt is synchronising production steps to meet customer demand.
Zero Defects
Zero defects is preventing defects from occurring in the production process.
Supply Chain Management
Supply chain management is the coordination of the flow of goods and services from raw materials to delivering final products to customers.
Global Sourcing of Inputs
Global sourcing of inputs is acquiring raw materials or resources from overseas suppliers.
Overseas Manufacture
Overseas manufacture is producing goods or services in a location outside of a business’s
headquarters country.
Global Outsourcing
Global outsourcing is transferring specific business activities to an external business in an
overseas country.
Corporate social responsibility (CSR)
Corporate social responsibility (CSR) is the ethical conduct of a business beyond legal obligations to improve the social, economic and environmental outcomes of stakeholders.
