Unit 4 - Decision making to improve operational performance Flashcards
Operations objective
A target set for the operations function
Quality
The features of a product or service that allow it to satisfy customers
Supply chain
The series of activities involved in taking the initial resources to providing the final product
Adding value
The process if increasing the worth of resources by modifying them
Capacity utilisation
Measures the existing output over a given period as a % of the maximum output
Lean production
Occurs when managers reduce waste and therefore operations become more efficient
Economies of scale
The advantages that an organisation gains due to an increase in size
Rationalisation
A process by which a firm improves its efficiency by cutting the scale of its operations
Quality assurance
The maintenance of target quality by attention to detail at every stage of the process
Quality control
A system of maintaining standards by testing the output against standards at the end of production
Kaizen
A policy implementing small, incremental changes in order to achieve better quality and greater efficiency
Outsourcing
When a business uses a third party to make goods
