Business Studies: Operations Lecture Notes

A comprehensive set of vocabulary flashcards covering the strategic roles, influences, processes, and strategies of Operations Management as outlined in the provided lecture notes.

Cost leadership

The strategy of having the lowest costs or being the most price competitive to remain profitable and gain a competitive advantage.

Product differentiation

The process of distinguishing products from those of competitors.

Quality expectations

How well designed, made, and functional goods are, including the degree of competence in how services are organized and delivered.

Globalisation

The removal of barriers of trade between nations and the increasing integration of capital, labour, ideas, and financial resources.

Government policies

Monetary benefits or tax concessions provided to promote innovative forms of economic growth.

Legal Regulation

Rules ensuring fair business conduct and the safety of employees and consumers.

Environmental Sustainability

Production methods that allow resources to be used without limiting the ability for future generations, including reducing non-renewable resources and climate change awareness.

Cost-based Competition

Strategies to create cost advantages and reduce costs to maximize profits and achieve economies of scale.

CAD/CAM

Computer-aided design/manufacturing that allows for readable 3D designs to be drawn and adjusted, saving time and reducing mistakes.

Legal Compliance

The requirement that a business complies with all applicable laws and regulations.

Ethical Responsibility

A commitment to promoting the intention of the law and values beyond just seeking profit.

Social Responsibility

The obligation of a business to provide for the good of society.

Transformed resources

Inputs that are changed or converted in the operations process, consisting of materials, information, and customers.

Transforming resources

Resources used to carry out the transformation process, specifically human resources and facilities.

Volume

The actual number of products produced, which often requires a large amount of capital.

Variety

The number of different models and variations offered; high variety usually corresponds with low volume.

Visibility

The degree to which customers can see the operations process in action.

Variation

The product range that changes according to the time of year, such as during Christmas.

Sequencing and scheduling

Tools used to identify all steps in the operations process and organize them into the most efficient order for completion.

Gantt Charts

A tool that records the number of steps needed to manufacture and estimates the time for each task.

Critical path analysis

A diagram showing the interrelationship of tasks, their overlapping, and the shortest length of time to complete the process.

Task design

The allocation of tasks to machines and employees based on their specific skills and capabilities.

Process layout

The arrangement of machinery according to their specific function.

Monitoring

The process of measuring actual performance against planned performance.

Control

Assessing key performance indicators against predetermined targets and taking corrective action if required.

Improvement

Suggestions for adjustments to day-to-day activities for long-term or short-term gains.

Customer service

How well expectations are met in all aspects of the business interaction.

Warranties

An assurance that the business stands by product quality and a promise to correct defects.

Dependability

A performance objective referring to reliability and working to set standards.

Flexibility

The ability for a business to switch or adjust to market changes.

Customisation

Redesigning a product to meet specific customer desires.

Global sourcing

Purchasing supplies or services without being constrained by location, often to gain cost advantages.

Logistics

The process of moving inputs, resources, and outputs through the business as quickly as possible.

E-commerce

The buying and selling of goods and services via the internet.

Leading Edge Technology

The most advanced or innovative technology at any point in time used to create products quickly to a higher standard.

Established Technology

Tried and proven, reliable technology that is developed and widely used, such as CAD/CAM.

LIFO

Last-In-First-Out; an inventory method used for goods like machinery or canned foods that have no use-by date.

FIFO

First-In-First-Out; an inventory method used for perishable goods such as food and drink.

JIT

Just-In-Time; an inventory system that holds minimal stock and brings it in from suppliers only as required to respond to market demand.

Quality Control

The process of establishing evaluation procedures and setting standards to measure performance and reduce defects via inspections.

Quality Assurance

The establishment of procedures to prevent defects and errors in the delivery of services.

Redundancy payments

Financial costs associated with the loss of work arising from job skills that are no longer required.

Retraining

Costs arising from reorganization of the business hierarchy or the acquisition of new technology necessitating new skills.

Inertia

The psychological resistance to change, often involving feelings of uncertainty or fear.

Economies of scale

Cost advantages gained by producing on a larger scale, where cost per unit is lowered as resources are used more effectively.

Scanning and learning

When management reviews the practices of other businesses and the global market to reorganize for better efficiency.

Research and development

The creation of new products and the improvement of existing ones, often encouraged by government tax incentives and grants.

Cross branding

Adds value by offering benefits from branding arrangements across different industries.

Standardised goods

Goods that are mass-produced on an assembly line and are uniform in quality.

Customised goods

Goods that are varied to the needs of customers, focusing on the market rather than production.

Supply chain

The range of suppliers a business has and the nature of their relationship.

Global web

A network of suppliers aiming to minimize costs across the entire range of suppliers.

Corporate Social Responsibility

An extension of the triple bottom line (people, planet, profit) where business performance is evaluated by financial, social, and environmental criteria.

Capital labour substitution

The process where machinery, technology, robotics, or AI replaces human labour.

Intermediate goods

Goods that have already been transformed and are used in further manufacturing or processes.

CRM

Customer Relationship Management; a program to maintain customer contact, identify taste changes, and cut production costs.

Outsourcing

The use of outside specialists to undertake business functions, either onshore (domestic) or offshore (another country).