Business - Operations Definitions

Operations processes

are those processes involved directly with transformation

Inputs

are the resources used in the transformation (production) process

Transformation

the conversion of inputs (resources) into outputs (goods or services)

Intermediate Goods

are goods manufactured and useful in further manufacturing or processing

Lean production

aims to eliminate waste at every stage of production. It involves analysing each stage of the production process, detecting inefficiencies and correcting them.

Value adding

is the creation of extra or added value as imports are transformed into outputs.

Cost Leadership

involves aiming to have the lowest costs or to be the most price-competitive in the market

Good/Service Differentiation

distinguishing products (goods or services) in some way from those of competitors

Standardisation

refers to the making of products that are homogeneous or identical distinguishing products (goods or services) in some way from those of competitors

Globalisation

refers to the removal of barriers of trade between nations. 

Technology

is the design, construction and/or application of innovative devices, methods and machinery upon operations processes.

Quality Expectations

refers to how well designed, well made and functional goods are, and the  overall degree of competence with which services are organised and delivered.

Cost-based competition

derived from determining breakeven point (the level at which the firm’s total revenue is exactly equal to its total costs) and applying strategies to create cost advantages over competitors.

Economies of scale

increased scale of operations often decreases cost per unit as fixed costs are spead across a larger number of goods.

Government Policies

are regulations (that can become laws) which govern the way in which businesses can operate.

Legal Regulations

a government policy that has passed through parliament it becomes a statutory law

Environmental Sustainability (ecological sustainability)

to shape business operations around practices that consume resources today without compromising access to those resources for future generations

Transformed Resources

are converted as part of the operations process & gives the process a purpose

Transforming Resources

inputs that carry out the transformation process. They enable change and value-adding to occur