KEYWORDS

Brand Image

The consumers’ perception of the brand; its character, qualities and shortcomings, developed over time and as a consistent theme through advertising campaigns.

Buffer Stock

A stock of raw materials held in reserve to protect the production process from unforeseen shortages.

Cost

The money spent by a business on goods and services.

Customer Engagement

The relationship between the business and the customer that puts the customer’s requirements at the centre of the operation to build brand loyalty.

Disposal of Waste

The removal, storage or destruction of unwanted material. Methods include recycling, burning and landfill sites.

E-Commerce

Business transactions carried out electronically on the internet.

Economies of Scale

The cost advantage of producing on a large scale. As output increases the unit cost decreases.

Export

Good/service sold to a customer in another country.

Fixed Costs

The costs that stay largely the same, regardless of the business' output.

Flow Production

Using a production line to make goods continuously and in large numbers.

Good

Items that are produced from raw materials for sale to businesses or consumers.

Import

Good/service bought from a supplier in another country.

Induction

Training given to a new employee when they start a new job; it provides information about the business, its operation and working practices.

Inspection

Testing/examining items to check that materials or items conform to the specified requirements/standards.

Job Analysis

The process of determining what the job entails, including responsibilities and tasks.

Job Production

A method of creating a single product to meet an individual order.

Just In Case (JIC)

Organising procurement to ensure that the production process never runs out of stock, reducing the number of sales lost due to insufficient raw materials.

Just In Time (JIT)

Organising the ordering of raw materials and components to be delivered just before they will be used, reducing the need for storage.

Lean Production

Continually working to reduce the resources used to create products: raw materials, labour, machines and premises.

Logistics

Managing the movement of supplies and products to ensure the timely delivery of supplies to the production process and finished products to customers.

M-Commerce

Business transactions are carried out electronically by mobile phone.

Motivation

The reasons people are interested in and committed to their job.

Outsourcing

Contracting another business to carry out some of the business’ activities, often to reduce costs.

Post Sales Servicing

Maintenance or repair of equipment by the manufacturer or supplier during or after the warranty.

Primary Industry

A business that extracts the earth’s natural resources.

Procurement

The process of buying goods and services including dealing with: demand, selection of suppliers, analysing and negotiating prices, making the purchase and managing payments.

Product Knowledge

An in-depth understanding of the features, use and application of the good/service that will enable the person selling it to provide any information that the purchaser wants before committing to buy.

Product Recalls

The withdrawal from sale by the manufacturer of a defective or contaminated item.

Productivity

The amount produced by a worker/machine/factory in a given time; the ability to produce more output with fewer resources.

Raw Materials

Businesses that use raw materials that are heavy and/or bulky choose to locate close to their suppliers to reduce the cost of transport or storage.

Recycling

The conversion of waste into reusable material.

Supplier

A business that provides goods/services.

Supply Chain

The network of organisations, people, activities, information and resources that take the product/service from supplier to customer.

Total Quality Management (TQM)

A philosophy that involves everyone in the business in the quest for continual improvement in the attitudes, practices, structures and systems that combine to create a top-quality product.

Trade Credit

The process of buying items from a supplier and paying for them later; for example, 30 days after invoice date.

Wholesaler

A business or person that buys goods in large quantities from producers, stores them in warehouses and sells them on to retailers.