Unit 4 - Decision making to improve operational performance Flashcards Preview

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Flashcards in Unit 4 - Decision making to improve operational performance Deck (12):
1

Operations objective

A target set for the operations function

2

Quality

The features of a product or service that allow it to satisfy customers

3

Supply chain

The series of activities involved in taking the initial resources to providing the final product

4

Adding value

The process if increasing the worth of resources by modifying them

5

Capacity utilisation

Measures the existing output over a given period as a % of the maximum output

6

Lean production

Occurs when managers reduce waste and therefore operations become more efficient

7

Economies of scale

The advantages that an organisation gains due to an increase in size

8

Rationalisation

A process by which a firm improves its efficiency by cutting the scale of its operations

9

Quality assurance

The maintenance of target quality by attention to detail at every stage of the process

10

Quality control

A system of maintaining standards by testing the output against standards at the end of production

11

Kaizen

A policy implementing small, incremental changes in order to achieve better quality and greater efficiency

12

Outsourcing

When a business uses a third party to make goods