U3O3 Business Management

operations management

all the activities in which managers engage to produce goods or services

effectiveness

the degree to which a business has accomplished its stated objectives

efficiency

how well a business uses resources in achieving its objectives

business competitiveness

the ability of a business to sell products in a market

inputs

the resources that go into the production of a good/service

processes

the actions performed to inputs to transform them into finished products

outputs

the final products produced as a result of a business’ operations system that are presented to the customer either as an intangible service, or tangible goods

standardised goods

goods that are produced consistently and are virtually identical to one another

capital intensive

utilising a high degree of equipment and machinery during the production process of a business’ operations system

labour intensive

utilising a high degree of employee involvement during the production process of a business’ operations system

automated production lines

machinery and equipment that are arranged in a sequence, where the product is developed as it proceeds through each step

robotics

programmable machines that are capable of performing specified tasks

computer-aided design (CAD)

digital design software that aids in the creation, modification, and optimisation of a design and the design process

computer-aided manufacturing (CAM)

the use of software that controls and directs production processes by coordinating equipment and machinery through a computer

artificial intelligence

using computerised systems to simulate human intelligence and mimic human behaviour

online services

services that are provided via the internet

materials management

the strategy that manages the use, storage and delivery of materials to ensure the right amount of inputs is available when required in the operations system

forecasting

a materials planning tool that predicts customer demand for an upcoming period using past data and market trends

master production schedule (MPS)

a plan that outlines what a business intends to produce, in specific quantities, within a set period of time

materials requirement planning (MRP)

a process that itemises the types and quantities of materials required to meet production targets set out in the MPS

just in time (JIT)

an inventory control approach that delivers the correct type and quantity of materials which arrive only as they are needed in the operations process

quality

a good or service’s ability to satisfy a customer’s need

quality control

inspecting a product at various stages of the production process, to ensure it meets designated standards, and discarding those that are unsatisfactory

quality assurance

the achievement of a certified standard of quality in a business’ production after an independent body assesses its operations system

total quality management

a holistic approach whereby all employees are committed to continuously improving the business’ operations system to enhance product quality

waste

any resource that is discarded because it cannot be further used in the production process

waste minimisation

the process of reducing the amount of unused material, time, or labour within a business

reduce

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

reuse

a waste minimisation strategy that aims to make use of items which would have otherwise been discarded

recycle

a waste minimisation strategy that aims to transform items which would otherwise have been discarded