Terminology
CSR
Corporate Social Responsibility
A business may decide to do this as a better strategy to achieve a sustainable advantage in a competitive market.
What is differentiation?
Different national economies integrated into one market for easy trade of goods and services, and the development of a world economy owing to the increasing flow of goods, services, people, finance, and information around the world.
What is Globalisation?
The inputs that change or convert into something else, such as materials, information or customers.
What is a transformed resource?
Technology that is most innovative
Leading Edge
Layout that is best for manufacturing - cars/clothes etc
Product Layout
The raw materials, components and parts used to produce a good or supply a service
What is an input?
Computer technology that allows architects, engineers and designers to draw and adjust designs using a computer.
What is Computer Aided Design?
The resources that remain in the business as they are applied to the changing inputs.
What are transforming resources?
How quickly a product can be redesigned, or service modification that matches customer desires.
What is customisation?
Refers to the features implemented by a business that create an advantage over its competitors
What is Competitive Advantage?
A measure of how efficiently goods and services are produced. It is usually measured in terms of output per labour hour.
What is productivity?
Computer technology that directly links the design process to the manufacturing process using computers.
What is Computer Aided Manufacture?
A product that is mass produced without variation
Standardised
This form of stock holding is best suited for perishable items (such as food and drink)
What is FIFO?
A scheduling tool used in an operation involving repetitive tasks, especially if the exact time each task will take is known
What is Critical Path Analysis?
By increasing the scale of operations, a business can lower the cost of producing each individual output as a result of cost savings and greater efficiency.
What are Economies of Scale?
Referring to how long the product functions without needing maintenance or repairs.
What is reliability?
The degree to which customers can see the operations of a business in action.
What is visibility?
The time it takes for a supplier to provide its customer with the goods ordered; that is, the time between the supplier's receipt of an order for goods until the delivery of those goods to the purchaser.
What is a Lead time?
The organisation of the physical movement of inputs and outputs from their point of origin to their destination. The route, method and speed of transportation are all factors to consider when delivering inputs and outputs.
What are logistics?
Each step of the operations process must have this in order to be a success.
What is value adding?
A strategy that aims to have a perfection rate of 99.997%
Six Sigma
An example of this is an Ice Cream truck selling more soft serves in December.
What is variation in demand?
This determines if the product is worth pursuing based on estimated sales and costs.
What is a cost-benefit analysis?