Unit 5 - Operations Management

Question 1

batch production

Answer 1

producing a set of identical products

Question 2

benchmarking HL

Answer 2

process of identifying best practice in an industry, in relation to products, processes and operations; it sets the standards for firms to emulate

Question 3

capacity utilisation HL

Answer 3

measures the existing level of output of a firm as a proportion of its potential output

Question 4

capital intensive

Answer 4

production relies heavily on machinery and equipment

Question 5

cell production

Answer 5

production where workers are organised in independent cells with multi-skilled team members

Question 6

cost-benefit analysis HL

Answer 6

tool that compares the financial costs of a decision with the quantitative benefits of that decision

Question 7

infrastructure

Answer 7

transportation, communication and support networks in certain areas

Question 8

innovation HL

Answer 8

commercial development, use and exploitation of an invention or creative idea that appeals to customers

Question 9

ISO 9000 HL

Answer 9

most widely recognised standard for quality management

Question 10

job production

Answer 10

production of a unique or one-off job

Question 11

just-in-case JIC HL

Answer 11

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

Question 12

just-in-time JIT HL

Answer 12

stock control system whereby materials and components are scheduled to arrive precisely when they are needed in the production process

Question 13

Kaizen HL

Answer 13

approach in the workplace where small groups of employees (Kaizen groups) are constantly trying to find ways to improve work processes and tasks

Question 14

lead time HL

Answer 14

duration between placing an order and receiving it

Question 15

lean production HL

Answer 15

approach used to eliminate waste in an organisation

Question 16

location

Answer 16

geographical position of a business

Question 17

make-or-buy decision HL

Answer 17

firm has to decide between manufacturing a product or buying it from a supplier

Question 18

mass production

Answer 18

large-scale manufacturing of a standardised product

Question 19

maximum stock level HL

Answer 19

upper limit of stock determined by physical storage and level of demand for output

Question 20

minimum stock level HL

Answer 20

lowest amount of stock determined by precautionary measures

Question 21

optimum stock level HL

Answer 21

ensures that there are suffcient stocks for uninterrupted production, but also minimises stock costs

Question 22

process innovation HL

Answer 22

changes in the way production takes place in order to improve the method of production, e.g. using new technologies

Question 23

product innovation HL

Answer 23

new creations or the radical development of existing products, e.g. improved functionality of product

Question 24

production process

Answer 24

turning factor inputs into outputs by adding value in a cost-effective way

Question 25

productivity HL

Answer 25

measures the level of labour and/or capital efficiency of a business by comparing its level of inputs with the level of its outputs

Question 26

quality HL

Answer 26

goods or services must be fit for its purpose by meeting or exceeding the expectations of the customer

Question 27

quality assurance HL

Answer 27

methods used by a business to reassure customers about the quality of its products by meeting certain quality standards

Question 28

research and development R&D HL

Answer 28

technological and scientific research that helps to generate a flow of new ideas and processes

Question 29

specialisation

Answer 29

division of a large task or project into smaller tasks that allow individuals to concentrate on an area of expertise

Question 30

standardisation

Answer 30

producing an identical or homogenous product in large quantities, e.g. newspaper

Question 31

adaptive creativity HL

Answer 31

innovation that adjusts or develops something that already exists

Question 32

Andon HL

Answer 32

lean production method that uses visual control systems to indicate the status of an aspect of the production process

Question 33

contingency planning HL

Answer 33

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

Question 34

cradle2cradle HL

Answer 34

model of production that seeks to create production techniques that are essentially waste-free and truly sustainable e.g. through recycling or reuse

Question 35

creativity HL

Answer 35

process of generating new ideas, often resulting from divergent thinking

Question 36

crisis HL

Answer 36

situation of instability that results in major problems for a business

Question 37

crisis management HL

Answer 37

handling and resolving an event that can cause serious damage to a business

Question 38

ecological sustainability

Answer 38

capacity of ecosystems to maintain their functions and retain their biodiversity

Question 39

economic sustainability

Answer 39

using assets of a business efficiently to allow it to continue functioning profitability over time

Question 40

flow production

Answer 40

form of mass production where different operations are continuously carried out in sequence

Question 41

innovative creativity HL

Answer 41

innovation that creates something that is new

Question 42

Kanban HL

Answer 42

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

Question 43

labour intensive

Answer 43

production relies heavily on labour

Question 44

operations management

Answer 44

(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

Question 45

paradigm innovation HL

Answer 45

radical changes of the nature of certain markets and cultures, e.g. e-commerce revolution

Question 46

positioning innovation HL

Answer 46

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

Question 47

productive capacity HL

Answer 47

firm’s maximum (potential) output if all its resources are used fully and efficiently

Question 48

quality circle HL

Answer 48

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

Question 49

quality control HL

Answer 49

traditional way of quality management and involves checking and reviewing work processes

Question 50

quality management HL

Answer 50

controlling business activities to ensure that products meet quality standards

Question 51

re-order level HL

Answer 51

when stock falls to that level, the next order is placed

Question 52

re-order quantity HL

Answer 52

amount of new stock ordered

Question 53

social sustainability

Answer 53

ability of a community to develop processes and structures that support the ability of future generations to maintain a healthy community

Question 54

stock-out HL

Answer 54

business doesn’t hold enough stock to meet orders for production

Question 55

stockpiling HL

Answer 55

business holds too much stock

Question 56

supply chain HL

Answer 56

sequence of activities from the production of the good or service to it being delivered to the end customer

Question 57

usage rate HL

Answer 57

speed at which stocks are depleted