Unit 4- Decision Making To Improve Operational Performance Flashcards
Labour intensive operations
Relatively high proportion of labour in the production is used compared to capital equipment
Operations
The transformation of outputs from inputs
Capital intensive labour
Relatively high proportion of capital equipment relative to labour
Supply chain
Series of activities involved in taking the initial resources and providing the final product
Operations objective
A target set for the operations to improve functions
SMARTER
Competitive advantage
When a business offers superior value to its competitors
Labour productivity
Amount of output per employee
Efficiency
Measured by the inputs used to generate the outputs. If a process has high efficiency it used fewer inputs to produce a given output and the unit costs should fall.
Lean production
When managers reduce waste and therefore operations become more efficient
Kaizen
Continuous improvement
Quality
The extent to which an operation meets its customer requirements.
Quality assurance
Maintenance of target quality by attention to detail at every stage of the process
Quality control
A system of maintaining standards by testing or inspecting the output against standards
Mass customisation
Producing on a large scale while still enabling individual customer preferences to be met
Inventory
The goods or stock that is kept
