Unit 4 - Decision making to improve operational performance

Question 1

Labour intensive

Answer 1

Methods of production that use high levels of labour.

Question 2

Capital intensive

Answer 2

Refers to the amount of capital that is invested into the business.

Question 3

Supply chain

Answer 3

The network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product.

Question 4

Operations objective

Answer 4

Specific, measurable targets that a business sets for its day-to-day operations.

Question 5

Competitive advantage

Answer 5

An advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.

Question 6

Total costs

Answer 6

The sum of expenses a company needs to manufacture a specific level of output.

Question 7

Unit/average costs

Answer 7

The cost per unit manufactured in a production run.

Question 8

Capacity

Answer 8

The maximum output that a business can produce in a given period with the available resources.

Question 9

Capacity utilisation

Answer 9

A measure of the extent to which the productive capacity of a business is being used.

Question 10

Labour productivity

Question 11

Efficiency

Question 12

Lean production

Question 13

Quality

Question 14

Mass customisation

Question 15

Inventory

Question 16

Part time

Question 17

Temporary staff

Question 18

Vertical integration

Question 19

Corporate social responsibility

Question 20

Outsourcing