Operations Test Definitions Flashcards
(20 cards)
Competitive Advantage
- Refers to the features implemented by a business that create an advantage over its competitors.
Vertically Integrate
- When a business purchases a controlling interest in other businesses in its supply chain.
Break-even Point
- When total revenue from sales equals total costs of operations. Any increase in output and sales means the business will begin to make a profit.
Transport Logistics
- The organisation of the physical movement of inputs and outputs from their point of origin to their destination. The route, method and speed of transportation are all factors to consider when delivering inputs and outputs.
Tangible
- Able to be seen and felt.
Trading Bloc
- A group of nations that have formed a trade alliance by signing a multilateral trade agreement.
Bottleneck
- Where output is limited by one aspect of operations.
Total quality management (TQM)
An approach to quality control that relies on
continuous improvement in all aspects of the
business. It is often referred to as kaizen and is
very evident in Japanese manufacturers, such
as Toyota
Economies of Scale
- By increasing the scale of operations, a business can lower the cost of producing each individual output as a result of cost savings and greater efficiency.
Jugaad
Originating in India, this term pertains to making
use of what resources are available to complete a
project imminently before it is due; a quick fix to
a problem using whatever is available.
Globilisation
Different national economies integrated into one
market for easy trade of goods and services,
and the development of a world economy
owing to the increasing flow of goods, services,
people, finance and information around
the world.
Benchmarking
The process of measuring performance against
established standards, such as a comparison
of a firm’s performance against standards set
by competitors in the same industry in the
domestic market
Patent
Gives the owner the exclusive rights to sell,
market, license or make a profit from an
invention, innovation or production technique
Quality Assurance
Establishing and using a set of procedures and/
or processes that will prevent products from
having problems (such as faults or errors).
Obsolescence
Loss of value of, or need for, an object, service
or practice by its becoming less suitable for use
max potential … of a business
Productive capacity
The maximum potential output of a business.
time between supplier receipt order and delivery of purchaser
Lead Time
The time it takes for a supplier to provide its customer with the goods ordered; that is, the time between the supplier’s receipt of an order for goods until the delivery of those goods to the purchaser.
operationscheduling tool involving …
Critical Path Analysis
A scheduling tool used in an operation involving
repetitive tasks, especially if the exact time
each task will take is known
Specialisation
A high level of skill at a specific task or role.
Efficiency
The achievement of maximum output with the
minimum level of inputs. It involves achieving
an objective without wasting resources and
while keeping costs as low as possible.
