Unit 3: Operations Management (Key Terms)

Job production

Producing one-off, unique items tailored to a customer's specific order.

Flow production

Continuous production of identical products on an assembly line.

JIT (Just-in-Time)

A system where stock is ordered only when it is needed for production.

Procurement

The process of finding and buying the goods/services a business needs to operate.

Quality Control vs Assurance

Control checks the end product; Assurance builds quality into the process.

Good customer service

Increases customer loyalty and leads to positive word-of-mouth.

Lead time

The time taken between a customer placing an order and receiving the product.

Productivity

The output per worker in a given period of time.

Disadvantage of high stock

High storage costs; risk of stock going out of date or being stolen.

TQM

An approach where every employee is responsible for maintaining quality at every stage.