Unit 3: Operations Flashcards
Brand image
The consumers’ perception of the brand; its character, qualities and shortcomings. It is developed over time and operates as a consistent theme through advertising campaigns.
Buffer stock
A stock of raw materials held in reserve to protect the production process from unforeseen shortages.
Cost
The money spent by a business on goods and services.
Customer Engagement
The relationship between the business and the customer that puts the customer’s
requirements at the centre of the operation to build brand loyalty
Disposal of waste
The removal, storage or destruction of unwanted material. Methods include recycling, burning and landfill sites.
E-Commerce
Business transactions carried out electronically on the internet
Economies of Scale
The cost advantage of producing on a large scale. As output increases the unit cost decreases
Export
Good/service sold to a customer in another country.
Fixed costs
The costs that stay largely the same, regardless of the business’ output
Flow production
Using a production line to make goods continuously and in large numbers
Good
Items that are produced from raw materials for sale to businesses or consumers
Import
Good/service bought from a supplier in another country
Induction
Training given to a new employee when they start a new job; it provides information about the business, its operation and working practices
Inspection
Testing/examining items to check that materials or items conform to the specified requirements/standards
Job Analysis
The process of determining what the job entails, including responsibilities and tasks
Job production
A method of creating a single product to meet an individual order
Just In Case (JIC)
Organising procurement to ensure that the production process never runs out of stock, reducing the number of sales lost due to insufficient raw materials
Just In Time (JIT)
Organising the ordering of raw materials and components to be delivered just before they will be used, reducing the need for storage
Lean Production
Continually working to reduce the resources used to create products: raw materials, labour, machines and premises
Logistics
Managing the movement of supplies and products to ensure the timely delivery of supplies to the production process and finished products to customers
M-Commerce
Business transactions are carried out electronically by mobile phone
Motivation
The reasons people are interested in and committed to their job
Outsourcing
Contracting another business to carry out some of the business’ activities, often to reduce costs
Post Sales Servicing
Maintenance or repair of equipment by the manufacturer or supplier during or after the warranty
Primary Industry
A business that extracts the earth’s natural resources
Procurement
The process of buying goods and services including dealing with:
• demand
• selection of suppliers
• analysing and negotiating prices
• making the purchase
• managing payments
Product Knowledge
An in-depth understanding of the features, use and application of the good/service that will enable the person selling it to provide any information that the purchaser wants before committing to buy
Product Recalls
The withdrawal from sale by the manufacturer of a defective or contaminated item
Productivity
The amount produced by a worker/machine/factory in a given time; the ability to produce more output with fewer resources
Raw Materials
Businesses that use raw materials that are heavy and/or bulky choose to locate close to their suppliers to reduce the cost of transport or storage
Recycling
The conversion of waste into reusable material
Supplier
a business that provides goods/services.
Supply chain
The network of organisations, people, activities, information and resources that take the product/service from supplier to customer
Total Quality Management (TQM)
A philosophy that involves everyone in the business in the quest for continual improvement in the attitudes, practices, structures and systems that combine to create a top-quality product
Trade Credit
The process of buying items from a supplier and paying for them later; for example, 30 days after invoice date
Wholesaler
A business or person that buys goods in large quantities from producers, stores them in warehouses and sells them on to retailers
