Unit 5 Business Operations

Job Production

customized good or service that meets the specific needs of a specific customer

Flow Production

Different operations are continuously and progressively carried out in a sequence.

Batch Production

Produces a set of identical products in separate batches.

Mass Customization

Mass production + personalization from job production

Lean Production

Philosophy or organizational culture that aims to minimize waste and increase efficiency by streamlining production processes

Kaizen

The process of making small, continuous, incremental improvements to various production processes to achieve greater efficiency.

Just In Time Delivery

Method of stock control where materials and components are scheduled to arrive when they are needed in the production process.

Benchmarking

Organization compares its products, processes, and performance to that of its competitors.

Total Quality Management

All workers are responsible for maintaining quality standards throughout production processes and aims to achieve zero defects by preventing mistakes.

Quality Control

Supervisor inspects output periodically for defects with the aim to ensure products comply with quality standards, preventing poor quality.

Quality Assurance

Empowers staff to check their own work throughout production processes.

Just In Case Delivery

Inventory management system where a business keeps more stock than immediately needed (buffer)

Cradle to Cradle

Model of designing and creating products in a way that minimizes waste and negative effects on the environment

Out-Sourcing

A business hires an external company to carry out a task that it could do itself

Off-Shoring

The relocation of a business operation to another country

In-Sourcing

Involves ending contracts with external suppliers to perform tasks that were previously out-sourced

Re-Shoring

Involves bringing back production to a country from a location abroad

Agglomeration

The process by which businesses in the same industry flock together in one geographical area.

Supply Chain Management

Process of working with all of a business’s suppliers to ensure reliable and quality production and delivery of components/goods.

Procurement

The process of purchasing goods and services that are used by a business to produce its products

Crisis Management

Steps a business can take to limit damage caused by unpredicted events/crisis and aims to return a normal business’s operations as swiftly as possible

Contingency Planning

Process of creating pre-arranged action plan that an organization would follow in the event of a crisis

Incremental Innovation

Adjusting, developing, and improving a product or process that already exists.

Disruptive Innovation

Innovation that involves creating entirely new products and/or processes

Prototyping

Test or trial version of the product to gauge the chances if commercial success before final development and launch of product