Business Management Unit 3 Outcome 3 Operations Management

Effectiveness

The degree to which a business has accomplished its stated objectives.

Efficiency

How well a business uses resources in achieving its objectives.

Inputs

Resources used to create a good or service, including materials, capital, human resources, time, information, and financial resources.

Outputs

The final product produced by the business, which can be classified as either goods or services.

Quality Control

A process used by businesses to check for defects by performing inspections throughout production.

Quality Assurance

A process whereby a business receives certification that its systems and processes meet specific national and/or international standards.

Total Quality Management (TQM)

A whole organization approach to achieving quality based on continuous improvement.

Materials Management

The planning, organizing, and controlling of a business’s supplies to ensure availability of materials.

Just-in-Time (JIT)

An inventory strategy that minimizes storage costs by delivering materials just as they are needed in production.

Lean Management

An approach that aims to eliminate waste and inefficiencies in operations while maximizing customer value.

Corporate Social Responsibility (CSR)

An approach where a business considers ethical and social responsibilities in their operations, including environmental impact.

Global Sourcing of Inputs

The practice of obtaining materials from foreign markets typically to reduce costs.

Overseas Manufacture

Production of goods in a country different from the business’s headquarters to take advantage of lower labor costs.

Global Outsourcing

The practice of using organizations from around the world to perform some business functions to reduce costs or improve quality.