Business Management Unit 3 AOS 3

Zero defects

Is a lean management strategy that involves a business preventing errors by having employees committed to continuous improvement, with a customer focus, allowing employee empowerment with the aim of achieving zero defects.

Productivity

the amount of goods and services produced with the inputs which were used in production to create outputs within a given period of time

Effectiveness

Measures how well a business has met their objectives

Quality Strategies

quality control, quality assurance, total quality management

Efficiency

Measures how well a business has used their resources

Inputs

a key element of the resources used by a business to produce goods and services

Processes

a key element showing the transformation of inputs into outputs

Outputs

a key element of the final goods/services of a business

Technology Strategies

Automated production lines, computer aided design, computer aided manufacturing, online services, artificial intelligence

Automated production line (APL)

Technology Strategy which comprises machinery and equipment arranged in a sequence with components added to a good as it proceeds through each step, with the process controlled by computers

Computer aided design (CAD)

A technology strategy which is the digital design sotfware that aids the creation, modification, and optimisation of a design and the design process

Computer aided manufacturing (CAM)

A technology strategy which involves the use of software that controls and directs production processes by coordinating machinery and equipment through a computer

Online Services

Refers to internet-based platforms and applications that support business operations

Artificial intelligence

Refers to the simulation of human intelligence in machines that are programmed to think and learn.

Robotics

Technology dealing with the design, construction, and operation of robots in automation.

Materials management

The strategy that managers the use concerning the storage and delivery of materials to ensure the right amount of inputs is available when required in the operations system.

4 strategies to manage materials efficiently

Forecasting, MRP, MPS and Just-in-time

Forecasting

Materials planning tool that relies on data from the past and present and analysis of trends to attempt to determine future events

Master Production Schedule

Schedule showing which products will be produced, when production will take place, and what resources will be used.

Materials requirement planning

Developing a list that sets out the exact quantities to meet the materials targets set out in the master production schedule

Just in time theory

An inventory control where materials are delivered at the right place, in the right quantity, at the right time.

3 strategies of quality management

quality control, quality assurance, TQM

quality control

A reactive quality approach which involves the inspection of a product at various stages of the production process, removing any identified defects to ensure each product is meeting the desired standards.

Quality assurance

A proactive quality approach which aims to reduce defects by achieving certification from an external organisation by meeting their strict criteria targets within production.

Waste Minimisation

a process involving the reduction of the amount of unwanted or unusable resources produced by a business in an attempt to improve the efficiency and effectiveness of operations

Total quality management (TQM)

a holistic quality approach where employees are committed to continuous improvement, having a customer focus, allowing employee empowerment with the aim of achieving zero defects.

Strategies of waste minimisation

3 R's - Reduce, Reuse, Recycle

Reduce

Is a waste minimisation strategy that aims to decrease the amount of resources, labour, or time discarded during production

Reuse

Is a waste minimisation strategy that aims to make use of the raw materials which have otherwise been discarded after production

Recycle

Is a waste minimisation strategy that aims to transform products which would have otherwise been discarded after production

Lean management

systematic process for eliminating waste so the end customer gets the most value from their perspective, while the business uses fewer resources.

4 Key principles of lean management

pull, one piece flow, zero defects, TAKT

Pull aspect of lean management

Is a lean management strategy that involves customers determining the number of products a business should produce for sale.

One piece flow aspect of lean management

Is a lean management strategy that involves focusing on producing a single product through each stage of production.

TAKT aspect of lean management

Is a lean management strategy that involves synchronising the steps of a business's operations system to ensure production is moving at a continuous pace to meet customer demand

Global sourcing of inputs

acquiring raw materials or resources from overseas suppliers

Overseas Manufacture

is producing goods or services in a location outside of a business's headquarters country.

Global outsourcing

Involves transferring specific business activities to an external business in an overseas country

CSR

when a company works above and beyond the requirement of the law to implement practices that enhance the welfare of society at large.

Operations management

Involves coordinating and organising the activities involved in producing the goods and services that a business sells to customers