UNIT 4 - Operations & project management Flashcards by Ruby Clarke

Q

Chapter 22 - the nature of operations

Intellectual capital

A

Intangible capital of a business that includes human capital (well trainded and knowledgeable employees), structural capital (databass info systems) and relational capital (links with suppliers & customers)

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Q

Chapter 22 - the nature of operations

Production

A

Converting inputs into outputs

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Q

Chapter 22 - the nature of operations

Level of production

A

Number of units produced during a time period

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Q

Chapter 22 - the nature of operations

Productivity

A

Ratio of outputs to inputs during production

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Q

Chapter 22 - the nature of operations

4 ways that productivity levels can be increased

A

Improve training of staff to increase skill level
improve worker motivation
purchase fancier equipment
More efficient management

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Q

Chapter 22 - the nature of operations

Efficiency

A

Producing output at the highest ratio of output to input

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Q

Chapter 22 - the nature of operations

Effectiveness

A

Meeting the objectives of the enterprise by using inputs productively to meet customers’ needs

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Q

Chapter 22 - the nature of operations

Labour intensive

A

Involving a high level of labour input compared with capital equipment

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Q

Chapter 22 - the nature of operations

Capital intensive

A

Involving a high quantity of capital equipment compared with labour input

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Q

Chapter 22 - the nature of operations

Inputs

A

capital (+ enterprise)
land
labour

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Q

Chapter 23 - Operations planning

Operations planning

A

Preparing input resources to supply products to meet expected demand

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Q

Chapter 23 - Operations planning

CAD

A

Computer-aided-design: The use of computer programs to create 2D or 3D graphical representations of physical objects

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Q

Chapter 23 - Operations planning

CAM

A

Computer-aided-manufacturing: The use of computer software to control machine tools and related machinery in the manufacturing of components or complete products

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Q

Chapter 23 - Operations planning

Operational flexibility

A

The ability of a business to vary both the level of production, and the range of products following changes in customer demand

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Q

Chapter 23 - Operations planning

Process innovation

A

The use of a new or much improved production method or service delivery method

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Q

Chapter 23 - Operations planning

Job production

A

Producing a one-off item specially designed for the customer

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Q

Chapter 23 - Operations planning

Batch production

A

Producing a limited number of identical products - each item in the batch passes through one stage of production before passing onto the next stage

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Q

Chapter 23 - Operations planning

Flow production

A

Producing items in a continually moving process

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Q

Chapter 23 - Operations planning

Mass customisation

Study These Flashcards

A

The use of flexible computer-aided production systems to produce items to meet individual customers’ requirements at mass-production cost levels

Q

Chapter 23 - Operations planning

Considerations in choosing the right method of production (4)

Study These Flashcards

A

capital available
Size of the market
Demad of the market
Availability of resources

Q

Chapter 23 - Operations planning

Optimal location

Study These Flashcards

A

A business location that gives the best combination of qualitative and quantitative factors

Q

Chapter 23 - Operations planning

Quantitative factors

Study These Flashcards

A

Measureable in financial terms and will have a direct impact on either costs of the site or revenue from it and its profitability

Q

Chapter 23 - Operations planning

Quantitative factors of location decisions (4)

Study These Flashcards

A

labour costs
transport costs
sales revenue potential
government grants

Q

Chapter 23 - Operations planning

Qualitative factors

Study These Flashcards

A

non-measurable factors that may influence business decisions

# Chapter 23 - Operations planning Qualitative factors of location decisions (6)

- safety - room for expansion - managers' preferences - ethics - environmnetal - infrastructure

# Chapter 23 - Operations planning **Multi-site location**

A business that operates from *more than one* location

# Chapter 23 - Operations planning **Offshoring**

The relocation of a business process done in one country to the same or another company in another country

# Chapter 23 - Operations planning **Multinational**

A business with operations or production bases in more than one country

# Chapter 23 - Operations planning **Trade barriers**

Taxes or other limitations on the free international movement of goods & services

# Chapter 23 - Operations planning **scale of operation**

The max output that can be achieved using the available inputs - this scale can only be increased in the long term by employing more of all inputs

# Chapter 23 - Operations planning **Economies of scale**

Reductions in a firm's average costs of sales that result from an *increase in scale of operations*

# Chapter 23 - Operations planning **dis-economies of scale**

average cots of sales increase with scale of operation

# Chapter 23 - Operations planning Enterprise resource planning

The use of single computer application to plan the purchase and use of resources in an organisation to improve efficiency of operations

# Chapter 23 - Operations planning **Supply chain**

all of the stages in the production process from obtaining raw materials to selling to the customer

# Chapter 23 - Operations planning Supply Chain M_____

management

# Chapter 23 - Operations planning **Sustainability**

Production systems that prevent waste by using using the minimum non-renewable resources so that levels of production can be sustained in the future

# Chapter 24 - Inventory management **Inventory (stock)**

materials and goods required to allow for the production and supply of products to the customer

# Chapter 24 - Inventory management 3 inventory forms

- raw materials - Work-in-progress - finished goods

# Chapter 24 - Inventory management costs of holding inventory

- wastage - storage costs - opportunity cost

# Chapter 24 - Inventory management Costs of not holding enough inventory

- loss of sales - idle production - small order quantities

# Chapter 24 - Inventory management **economic order quantity**

The optimum or least-cost quantity of stock to re-order taking into account delivery costs and stock-holding costs

# Chapter 24 - Inventory management **Buffer inventories**

The *minimum inventory level* that should be held to ensure that production could still take place should a delay in delivery occur, or production rates increase

# Chapter 24 - Inventory management **Re-order quantity**

number of units ordered each time

# Chapter 24 - Inventory management **Lead-time**

normal time taken between ordering new stocks and their delivery

# Chapter 24 - Inventory management **just-in-time**

inventory control method aims to avoid holding inventories by requiring supplies to arrive just as they are needed in production and completed products are produced to order

# Chapter 24 - Inventory management Requirements for JIT

- excellent relationship with suppliers - flexible staff + multi-skilled - flexible machinery - Accurate demand forecasting - quality ensured thorughout - healthy workplace