Introduction to Operations
This is the process of converting inputs into outputs.
What is the transformation process?
This method produces one unique product at a time, often customized.
What is job production?
This term refers to the physical place where a business operates.
What is location?
DOUBLE JEOPARDY
A business with multiple production sites is said to have this type of location strategy.
What is multi‑site location?
Fixed costs divided by contribution per unit gives you this.
What is break-even quantity?
This term describes materials, labour, capital, and enterprise used in production.
What are factors of production?
High output, specialization in same production line, and low unit costs are key advantages of this method.
What is mass customization?
Labour cost, land cost, and transport cost fall under this category of location factors.
What are quantitative factors?
A benefit of multi-site location related to faster response to local demand.
What is greater flexibility and cost effective?
Selling price minus variable cost per unit.
What is contribution per unit?
These outputs of the production process cannot be stored and are intangible.
What are services?
This production method involves groups of identical products made together.
What is batch production?
Community attitudes and quality of life fall under this category.
What are qualitative factors?
When a business brings back production into the country from an overseas location.
What is reshoring?
Total revenue minus total costs equals this.
What is profit?
Physical resources and components are examples of this type of input.
What are raw materials?
This method produces identical products in a continuous, automated sequence.
What is flow/mass production?
When a business retains or brings back a particular task within the business.
What is insourcing?
A business moving production overseas for lower costs is engaging in this.
What is offshoring?
DOUBLE JEOPARDY
This shows how much output can fall before the business stops making a profit.
What is margin of safety?
An operations process that has a high proportion of capital compared to labour.
What is a capital-intensive process?
DOUBLE JEOPARDY
Two things need to be considered when choosing a method of operations.
What are volume of demand and product adaptation need?
Occurs when a business uses other producers to undertake some of its operations.
What is outsourcing?
To be closer to the market, overcome trade barriers, government subsidies, lower costs, less regulations are all reason
What are reasons to locate abroad or offshore?
This financial tool helps managers predict how changes in price, cost, or output affect profitability.
What is break-even analysis?