Operations

What is operations management?

The process of converting inputs into outputs efficiently.

What are inputs in production?

Resources used in production such as labour, materials, and capital.

What are outputs in production?

The finished goods or services produced by a business.

What is efficiency?

Producing output using the least possible resources, time, and cost.

What is productivity?

The amount of output produced per unit of input.

What is labour productivity?

Output per worker or per hour worked.

What is lean production?

A system that aims to minimise waste while maintaining quality.

What is waste in lean production?

Anything that does not add value to the product.

What is just-in-time (JIT)?

A system where materials are ordered and received only when needed.

What are advantages of JIT?

Reduces inventory costs and waste.

What are disadvantages of JIT?

Risk of stock shortages and supply delays.

What is quality?

How well a product meets customer expectations.

What is quality control?

Inspecting products after production to identify defects.

What is quality assurance?

Preventing defects by improving processes throughout production.

What is total quality management (TQM)?

A company-wide approach focused on continuous improvement of quality.

What is continuous improvement (Kaizen)?

Ongoing efforts to improve products and processes.

What is capacity utilisation?

The proportion of maximum output that is actually being produced.

What is full capacity?

When a business is producing at maximum output.

What is underutilisation?

When a business is operating below full capacity.

What is economies of scale?

Cost advantages gained as a business grows.

What is diseconomies of scale?

Increased average costs due to business growth.

What is batch production?

Producing groups of identical products together.

What is flow production?

Continuous production of standardised goods.

What is job production?

Producing unique, customised products.

What is flexibility in operations?

The ability to adapt production to changes in demand or design.

What is outsourcing?

Using external firms to carry out business activities.

What is offshoring?

Moving production to another country to reduce costs.

What is automation?

Using machines or technology instead of human labour.

What is technology in operations?

Tools and systems that improve production efficiency.

What is inventory?

Stocks of raw materials, work-in-progress, and finished goods.

What is buffer stock?

Extra stock held to prevent shortages.

What is stock control?

Managing the level of inventory held by a business.

What is reorder level?

The point at which new stock is ordered.

What is capacity?

The maximum output a business can produce in a given time.

What is supply chain?

The network of suppliers involved in producing and distributing a product.

What is reliability in operations?

Delivering products consistently on time and to standard.

What is added value in operations?

The difference between input cost and selling price of output.