Operations Management Jargon Flashcards
(113 cards)
1
Q
Cost Leadership
A
An aim to have the lowest costs or to be the most price-competitive in the market
2
Q
Customised Goods
A
Goods that are varied according to the needs of customers
3
Q
Economies of Scale
A
cost advantages that can be gained by producing
on a larger scale. This means that businesses can lower their per unit input
costs.
4
Q
Interdependence
A
refers to the mutual dependence that the key functions have on one another. This means that the various business functions work best when they
work together.
5
Q
Lean Production
A
An aim to eliminate waste at every stage of production
6
Q
Operations
A
The business processes that involve transformation or production
7
Q
Product Differentiation
A
The distinguishing of products (goods or services) in some way from its competitiors
8
Q
self-service
A
where customers
are encouraged to
help themselves
9
Q
standardised goods
A
goods that are mass
produced, usually on
an assembly line
10
Q
strategic
A
affecting all key
business areas
11
Q
transformation
A
the conversion of inputs
(resources) into outputs
(goods and services)
12
Q
value adding
A
the creation of extra or
added value as inputs
are transformed into
outputs
13
Q
breakeven point
A
the level at which a firm
matches total costs and
total revenues
14
Q
carbon footprint
A
the amount of carbon
produced and entering
the environment from
operations processes
15
Q
carbon pricing
A
putting a price on
carbon
16
Q
compliance costs
A
expenses associated with
meeting the requirements
of legal regulations i.e.
abiding by all laws
17
Q
corporate social
responsibility (CSR)
A
open and accountable
business actions based on
respect for people, society
and the broader environment
18
Q
cost-based
competition
A
derived from determining breakeven point and then applying strategies to create cost advantages over competitors
19
Q
environmental
sustainability
A
the idea that business operators should be shaped around practices that consume resources today without compromising access to those resources for future generations
20
Q
fiduciary
A
a person in a position of
financial trust with
respect to others’ money
21
Q
fixed costs
A
costs that do not change
regardless of the level of
business activity
22
Q
globalisation
A
the removal of barriers of trade, increasing integration and a high degree of transfer of capital, labour and resources between nations
23
Q
global web
A
the network of suppliers a business has chosen on the basis of lowest cost, lowest risk and maximum certainty in quality and timing of supplies
24
Q
innovation
A
when a business creates
novel (new) products
and in doing so leads
the market
25
offshore outsourcing
the use of overseas
businesses as the
outsourcing provider
26
onshore outsourcing
the use of domestic
businesses as the
outsourcing provider
27
outsourcing
the use of outside
specialists to undertake
one or more key
business functions
28
quality
```
how well designed, made and
functional goods are, and the
degree of competence with
which services are organised
and delivered
```
29
reverse engineering
```
a process that involves taking an
existing product, taking it apart
and then producing an imitation
version using different materials
at a lower cost
```
30
supply chain
the range of suppliers a
business has and the
nature of its relationship
with those suppliers
31
technology
```
the design, construction and/or
application of innovative
devices, methods and
machinery upon operations
processes
```
32
variable costs
costs that vary in direct
relationship to the level
of business activity (level
of production)
33
bottleneck
```
an aspect of the transformation
process that slows down the
overall processing speed or
creates a backlog of incompletely
processed products
```
34
capital-labour
| substitution
when machinery and
technology displace
people by doing the
work instead
35
computer-aided
| design (CAD)
```
a computerised design tool
that allows businesses to
create product possibilities
from a series of input
parameters
```
36
computer-aided
manufacturing
(CAM)
software that controls
the manufacturing
processes
37
control
```
when key performance
indicators are assessed against
predetermined targets and
corrective action is taken if
required
```
38
critical path analysis
| CPA
```
a scheduling method that shows
what tasks need to be done,
how long they take and what
order is necessary to complete
those tasks
```
39
customer
relationship
management (CRM)
the systems that a
business uses to
maintain customer
contact
40
customer service
how well a business meets
and exceeds the expectations
of customers in all aspects of
its operations
41
facilities
the plant (factory or
office) and machinery
used in the operations
processes
42
fixed position layout
an operational
arrangement in which
employees and equipment
come to the product
43
Gantt chart
```
a type of bar chart that shows
both the scheduled and
completed work over a period of
time, used for planning and
tracking a project
```
44
improvement
the systematic reduction of
inefficiencies and wastage,
poor work processes and the
elimination of bottlenecks
45
information
the knowledge gained from
research, investigation and
instruction, which results in
an increase in understanding
46
inputs
the resources used in
the transformation
(production) process
47
intermediate goods
goods manufactured
and used in further
manufacturing or
processing
48
key performance
| indicators (KPIs)
specific criteria used to
measure the efficiency and
effectiveness of the
performance of the business
49
lead time
the time it takes for an
order to be fulfilled from
the moment it is placed
50
materials
```
the basic elements used in
the production process,
consisting of two types: raw
materials and intermediate
goods
```
51
mix flexibility
the variety of products
made, or services
delivered through the
information process
52
monitoring
the process of
measuring actual
performance against
planned performance
53
outputs
the end result of business
efforts - the good or service
that is provided or
delivered to the customer
54
plant layout
the arrangement of
equipment, machinery
and staff within a facility
55
process layout
```
the arrangement of machines
such that the machines and
equipment is grouped together
according to the function they
perform
```
56
process production
production
characterised by highvariety,
low-volume jobs
57
product layout
where the equipment
arrangement is based on the
sequence of tasks performed
in manufacturing a product
58
product production
| mass production
production characterised
by the manufacturing of a
high volume of constant
quality goods
59
project production
deals with the layout
requirements for largescale
activities such as
construction of bridges etc
60
raw materials
essential substances
in their unprocessed
state
61
robotics
highly specialised technology,
capable of complex tasks,
programmable for assembly
lines etc.
62
scheduling
the length of time
activities take within the
operations process
63
sequencing
the order in which
activities in the
operations process
occur
64
skills audit
```
a formal process used to
determine the present level of
skills and any skill shortfalls that
need to be made up through
recruitment or training
```
65
task design
```
classifying job activities in
ways that make it easy for an
employee to successfully
perform and complete the
task
```
66
telecommute
```
to travel to work
electronically, allowing work to
be done via email or internet
from home or another
location
```
67
transformation
the conversion of inputs
(resources) into outputs
(goods and services)
68
transformed
| resources
those inputs that are
changed or converted in
the operations process
69
transforming
| resources
those inputs that carry
out the transformation
process
70
volume
how much of a
| product is made
71
warranty
```
a promise made by a business
that they will correct any
defects in the goods that they
produce or in the sales that
they deliver
```
72
workstations
desk areas for office workers,
usually fitted with a
computer, telephone, storage
and access to a printer
73
B2B
direct access from one
business (the supplier)
to another (the buyer)
74
B2C
the selling of goods and
services to consumers over
the internet, with payment
usually by credit card
75
change agent
somebody who initiates
change or facilitates the
change process
76
continuous
| improvement
an ongoing commitment
to improve the goods
and services of a
business
77
cost
```
a performance objective related
to the minimisation of expenses
so that operations processes
are conducted as cheaply as
possible
```
78
customisation
the creation of
individualised products
to meet the specific
needs of the customers
79
dependability
a performance objective
related to how
consistent and reliable
the products are
80
distribution
the ways of getting the
goods and services to
the customer
81
e-commerce
the buying and selling of
goods and services via
the internet
82
e-procurement
the use of online
systems to manage
supply
83
established
| technology
technology that has
been developed, widely
used and accepted
84
explicit service
the tangible aspect of the
service being provided, such
as the application of time,
expertise, skill and effort
85
first-in-first-out (FIFO)
```
an inventory pricing method that
assumes that the first goods
purchased are also the first goods
sold and therefore the cost of each
unit sold is the first cost recorded
```
86
flexibility
how quickly operations
processes can adjust to
changes in the market
87
global sourcing
buying from wherever
the suppliers are that
best meet requirements
88
implicit service
the intangible,
psychological wellbeing
that comes with the
provision of the service
89
inertia
a psychological
| resistance to change
90
inventory or stock
```
the amount of raw materials,
work-in-progress and finished
goods that a business has on
hand at any particular point in
time
```
91
just-in-time (JIT)
```
an inventory management
approach which ensures that the
exact amount of material inputs
will arrive only as they are needed
in the operation process
```
92
kaizen
```
the Japanese word for
"improvement", emphasising
continuous improvement in all
areas and levels of a business,
from the CEO to the assembly line
```
93
last-in-first-out (LIFO)
```
an inventory pricing method that
assumes that the last goods
purchased are also the first goods
sold and therefore the cost of each
unit sold is the last cost recorded
```
94
leading edge
| technology
technology that is the
most advanced or
innovative at any point
in time
95
logistics
```
a broad term referring to
distribution centres,
transport, storage,
warehousing, materials
handling and packaging
```
96
mass customisation
```
a process that allows a
standard, mass-produced
item to be personally
modified to specific customer
requirements
```
97
performance
| objectives
goals that relate to
particular aspects of the
transformation
processes
98
product utility
the usefulness and value
that a product has from
the customer's point of
view
99
quality assurance
| QA
the use of a system to
ensure that set
standards are achieved
in production
100
quality control
the use of inspectors at
various points in the
production process to check
for problems and defects
101
quality management
```
processes that a business
undertakes to ensure
consistency, reliability, safety
and fitness of purpose of
product
```
102
quality of
| conformance
the focus on how well the
product meets the standard
of a prescribed design with
certain specifications
103
redundancy
a loss of work arising from
a job skills that are no
longer required or relevant
to the workplace
104
six sigma
```
a quality management approach
that seeks to identify and remove
the causes of problems in the
operations processes, achieving
virtually defect-free production
```
105
sourcing
the purchasing of inputs
for the transformation
processes
106
speed
the time it takes for the
production and the
operations process to respond
to changes in market demand
107
storage
finding a secure place to
hold stock until it is
required
108
supplier
| rationalisation
reducing the number
of suppliers to a
minimum
109
supply chain
| management (SCM)
```
integrating and managing the
flow of supplies throughout the
inputs, transformation
processes and outputs to best
meet customer needs
```
110
total quality
| management (TQM)
a concept focusing on
managing the total
business to deliver
quality to customers
111
warehousing
the use of warehouses
for the storage,
protection and
distribution of stock
112
Foreign investment
Involves capital flows from one country to another, granting extensive ownership stakes in domestic companies and assets
113
Foreign Direct Investment
Foreign direct investment is when an individual or business owns 10 percent or more of a foreign company’s capital
