Unit 5 - Operations Management Flashcards
batch production
producing a set of identical products
benchmarking HL
process of identifying best practice in an industry, in relation to products, processes and operations; it sets the standards for firms to emulate
capacity utilisation HL
measures the existing level of output of a firm as a proportion of its potential output
capital intensive
production relies heavily on machinery and equipment
cell production
production where workers are organised in independent cells with multi-skilled team members
cost-benefit analysis HL
tool that compares the financial costs of a decision with the quantitative benefits of that decision
infrastructure
transportation, communication and support networks in certain areas
innovation HL
commercial development, use and exploitation of an invention or creative idea that appeals to customers
ISO 9000 HL
most widely recognised standard for quality management
job production
production of a unique or one-off job
just-in-case JIC HL
traditional stock management system that maintains buffer stocks (reserve stock) in case there are any emergencies (such as delayed delivery of stocks) or supply and demand fluctuations
just-in-time JIT HL
stock control system whereby materials and components are scheduled to arrive precisely when they are needed in the production process
Kaizen HL
approach in the workplace where small groups of employees (Kaizen groups) are constantly trying to find ways to improve work processes and tasks
lead time HL
duration between placing an order and receiving it
lean production HL
approach used to eliminate waste in an organisation
location
geographical position of a business
make-or-buy decision HL
firm has to decide between manufacturing a product or buying it from a supplier
mass production
large-scale manufacturing of a standardised product
maximum stock level HL
upper limit of stock determined by physical storage and level of demand for output
minimum stock level HL
lowest amount of stock determined by precautionary measures
optimum stock level HL
ensures that there are suffcient stocks for uninterrupted production, but also minimises stock costs
process innovation HL
changes in the way production takes place in order to improve the method of production, e.g. using new technologies
product innovation HL
new creations or the radical development of existing products, e.g. improved functionality of product
production process
turning factor inputs into outputs by adding value in a cost-effective way
productivity HL
measures the level of labour and/or capital efficiency of a business by comparing its level of inputs with the level of its outputs
quality HL
goods or services must be fit for its purpose by meeting or exceeding the expectations of the customer
quality assurance HL
methods used by a business to reassure customers about the quality of its products by meeting certain quality standards
research and development R&D HL
technological and scientific research that helps to generate a flow of new ideas and processes
specialisation
division of a large task or project into smaller tasks that allow individuals to concentrate on an area of expertise
standardisation
producing an identical or homogenous product in large quantities, e.g. newspaper
adaptive creativity HL
innovation that adjusts or develops something that already exists
Andon HL
lean production method that uses visual control systems to indicate the status of an aspect of the production process
contingency planning HL
developing a plan before an unwanted or unlikely event occurs by using „what if” questions to identify possible threats e.g. evacuation plan in case of a fire in the workplace
cradle2cradle HL
model of production that seeks to create production techniques that are essentially waste-free and truly sustainable e.g. through recycling or reuse
creativity HL
process of generating new ideas, often resulting from divergent thinking
crisis HL
situation of instability that results in major problems for a business
crisis management HL
handling and resolving an event that can cause serious damage to a business
ecological sustainability
capacity of ecosystems to maintain their functions and retain their biodiversity
economic sustainability
using assets of a business efficiently to allow it to continue functioning profitability over time
flow production
form of mass production where different operations are continuously carried out in sequence
innovative creativity HL
innovation that creates something that is new
Kanban HL
method of lean production used to ensure that inventory is based on actual customer orders using a card system with an inventory number attached to each component in the production process
labour intensive
production relies heavily on labour
operations management
(production) concerned with providing the right goods and services in right quantities and at the right quality level in a cost-effective and timely manner
paradigm innovation HL
radical changes of the nature of certain markets and cultures, e.g. e-commerce revolution
positioning innovation HL
changes in the context of a product; it focuses on repositioning the perception of an established product by the use of appropriate innovation strategies, e.g. Levi Strauss jeans originally designed for workers, but repositioned as fashionable casual wear
productive capacity HL
firm’s maximum (potential) output if all its resources are used fully and efficiently
quality circle HL
groups of workers that meet on a regular basis to identify problems related to quality assurance and to consider alternative solutions to the identified problems
quality control HL
traditional way of quality management and involves checking and reviewing work processes
quality management HL
controlling business activities to ensure that products meet quality standards
re-order level HL
when stock falls to that level, the next order is placed
re-order quantity HL
amount of new stock ordered
social sustainability
ability of a community to develop processes and structures that support the ability of future generations to maintain a healthy community
stock-out HL
business doesn’t hold enough stock to meet orders for production
stockpiling HL
business holds too much stock
supply chain HL
sequence of activities from the production of the good or service to it being delivered to the end customer
usage rate HL
speed at which stocks are depleted
