Operations Flashcards
Output
Is the total amount produced in a given time period
Inventory
Refers to the stock held in a business such as materials and semi finished goods
Operations management
Overseas the planning, coordination and control of the transformation process, turning inputs into outputs
Productivity
Measure the output per hour, per person or per machine
Sustainable
Activity which meet the needs of the business or of society without compromising on the ability to meet future needs
Capital intensive
Production means there is a high proportion of capital used relative to other factors of production
Labour intensive
Production means there is a relatively high proportion of Labour used relative to other factors of production
Supply chain
Refers to all the different stages involved in making, distributing and selling a good or service.
Supply chain management
Involves managing the flow of goods and services and includes the different processes that transform raw materials into final products
Lean production
Is an approach the continually seeks to reduce any form of wastage in the production process
Capacity
Measures the maximum amount of output a form can hold at a given moment with its existing resources
Factors of production
Are the inputs the transformation process ( Land, labour, capital and enterprise)
Capacity utilisation
Measures the existing output relative to the maximum possible outlet
Capacity under utilisation
Occurs when a business is producing less than the maximum amount it can produce given its existing resources
Rationalisation
Occurs when a business reduces the scale of its operations and reduces its capacity level
