4.1 The nature of operations
The total amount produced in a given time period.
What is the output?
All the different stages involved in making, distributing and selling a good or service, beginning with the material through to the production of parts, through to the distribution and sale of the product.
What is the supply chain?
Measures the maximum amount of output a firm can produce at a given moment with its existing resources
What is capacity?
The stocks held in a business, such as materials and semi-finished goods
What is inventory?
managing the flow of goods and services, and includes the different processes that transform raw materials into final products.
What is upply chain management?
Inputs into the transformational process of business, such as land, labour, capital and enterprise
What are the factors of production?
The planning, cooordination and control of the ransformation process, turning resources (inputs) into outputs.
What is operations management?
An approach that continually seeks to reduce any form of wastage in the production process.
What is lean production?
measures the existing output relative to the maximum possible output.
What is capacity utilisation?
The measure of the output per hour, per person or per machine.
What is productivity?
The traditional approach in which businesses hold inventory case there is an increase in demand
What is 'just in case' (JIC)
When a business is producing less than the maximum amount it can produce, given its existing resources.
What is Capacity under-utilisation?
Activities are those that meet the needs of the business or of society without compromising on the ability to meet future needs.
What is sustainability?
Occurs when firms produce products to order
What is 'just in time' (JIC)?
When a business reduces the scale of its operations and reduces its capacity level.
What is rationalisation?
Production where there is a high proportion of machinery used relative to other factors of production
What is capital intensive?
When one business employs another business to undertake some of the work.
What is subcontracting?
Production where there is a relatively high proportion of employees used relative to other factors of production.
What is labour intensive?
When the business uses other producers to undertake some of its operations.
What is outsourcing?