Unit 3 Operations Key Words

Question 1

Brand image

Answer 1

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

Question 2

Buffer stock

Answer 2

A stock of raw materials held in reserve to protect the production process from unforeseen shortages

Question 3

Cost

Answer 3

The money spent by a business on goods and services.

Question 4

Customer engagement

Answer 4

The relationship between the business and the customer that puts the customer’s requirements at the centre of the operation to
build brand loyalty.

Question 5

Export

Answer 5

Good/service sold to a customer in another country

Question 6

Flow production

Answer 6

Using a production line to make goods continuously and in large numbers.

Question 7

Good

Answer 7

Items that are produced from raw materials for sale to businesses or consumers

Question 8

Import

Answer 8

Good/service bought from a supplier in another country.

Question 9

Induction

Answer 9

Training given to a new employee when they start a new job; it provides information about the business, its operation and working practices

Question 10

Inspection

Answer 10

Testing/examining items to check that materials or items conform to the specified
requirements/standards

Question 11

Job analysis

Answer 11

The process of determining what the job entails, including responsibilities and tasks

Question 12

Job production

Answer 12

A method of creating a single product to meet an individual order.

Question 13

Just-in-case (JIC)

Answer 13

Organising procurement to ensure that the production process never runs out of stock,
reducing the number of sales lost due to insufficient raw materials

Question 14

Just in time (JIT)

Answer 14

Organising the ordering of raw materials and components to be delivered just before they will be used, reducing the need for storage

Question 15

Lean production

Answer 15

Continually working to reduce the resources used to create products: raw materials, labour,
machines and premises

Question 16

Logistics

Answer 16

Managing the movement of supplies and products to ensure the timely delivery of supplies to the production process and finished products to customers.

Question 17

Motivation

Answer 17

The reasons people are interested in and committed to their job

Question 18

Outsourcing

Answer 18

Contracting another business to carry out some of the business’ activities, often to reduce
costs

Question 19

Post sales servicing

Answer 19

Maintenance or repair of equipment by the manufacturer or supplier during or after the
warranty.

Question 20

Primary industry

Answer 20

A business that extracts the earth’s natural resources

Question 21

Procurement

Answer 21

The process of buying goods and services including dealing with:
• demand
• selection of suppliers
• analysing and negotiating prices
• making the purchase
• managing payments.

Question 22

Prodcut knowledge

Answer 22

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

Question 23

Product recalls

Answer 23

The withdrawal from sale by the manufacturer of a defective or contaminated item

Question 24

Productivity

Answer 24

The amount produced by a worker/machine/factory in a given time; the ability to produce
more output with fewer resources.

Question 25

Raw materials

Answer 25

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.

Question 26

Supplier

Answer 26

A business that provides goods/services

Question 27

Supply chain

Answer 27

The network of organisations, people, activities, information and resources that take the
product/service from supplier to customer

Question 28

Total Quality Management (TQM)

Answer 28

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

Question 29

Trade credit

Answer 29

The process of buying items from a supplier and paying for them later; for example, 30 days
after invoice date.

Question 30

Wholesaler

Answer 30

A business or person that buys goods in large quantities from producers, stores them in
warehouses and sells them on to retailers