Business Management Operations Management

Manufacturing businesses

utilise their operations system to produce physical goods.​

Service businesses

provide intangible products, usually with the use of specialised expertise.

Automated production lines

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

Robotics

are programmable machines that perform specified tasks. These specialised machines can be programmed to efficiently complete specialised tasks with high levels of precision and accuracy within a business’s operations. ​

Computer-aided design

(CAD) is digital design software that aids the creation, modification, and optimisation of a design and the design process.​

Computer-aided manufacturing

(CAM) techniques involve the use of software that controls and directs production processes by coordinating machinery and equipment through a computer.​

Artificial intelligence (AI)

involves using computerised systems to simulate human intelligence and mimic human behaviour.​

Online services

are services that are provided via the internet. There are a variety of online services that a business can utilise to improve its operations, including booking platforms, online marketplaces, food ordering platforms, price comparison platforms, or cloud-based storage.​

Waste minimisation

is the process of reducing the amount of unused material, time, or labour within a business. This may include reducing the amount of defective, unused, returned or discarded materials.

Reduce

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

Reuse

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

Recycle

is waste minimisation strategy that aims to transform items which would have otherwise been discarded. ​

Materials management

involves organising and monitoring the delivery, storage, and use of materials required for production.​Materials must be delivered to the right place, in the correct quantities, and at the scheduled time.​

Forecasting

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

master production schedule (MPS)

is a plan that outlines what a business intends to produce, in what quantities, over a set time frame taking into account forecast customer demand and production costs.​

Materials requirement planning (MRP)

is a process that itemises the types and quantities of materials required to meet production targets set out in the master production schedule. ​

Just in Time (JIT)

is an inventory control approach that delivers the correct type and quantity of materials as soon as they are needed for production. ​

Lean management

is the process of systematically reducing waste in all areas of a business’s operations system whilst simultaneously improving customer value.

Pull

is a lean management strategy that involves customers determining the number of products a business should produce for sale. ​

One-piece flow

is a lean management strategy that involves processing a product individually through a stage of production and passing it onto the next stage of production before processing the next product, continuing this process throughout all stages of production. ​

Takt

is a lean management strategy that involves synchronising the steps of a business’s operations system to meet customer demand. The word ‘takt’ is German and means pace, rhythm, or pulse.

Zero defects

is a lean management strategy that involves a business preventing errors from occurring in the operations system by ensuring there is an ongoing attitude of maintaining a high standard of quality for the final output.​

Quality

is a good or service’s ability to satisfy a customer’s need. It can be measured by numerous factors, including the reliability, durability, delivery time, and consistency of products. ​

Quality control

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

Quality assurance

involves a business achieving a certified standard of quality in its production after an independent body assesses its operations system. ​

Total Quality Management (TQM)

is a holistic approach whereby all employees are committed to continuously improving the business’s operations system to enhance quality for customers. ​

Corporate social responsibility

(CSR) is the ethical conduct of a business beyond legal obligations, and the consideration of social, economic, and environmental impacts when making business decisions.​

Global sourcing of inputs

involves a business acquiring raw materials and resources from overseas suppliers. ​

Global outsourcing

involves transferring specific business activities to an external business in an overseas country. ​

Overseas manufacture

involves a business producing goods outside of the country where its headquarters are located. A business may utilise overseas manufacturing to produce goods in greater quantities for a lower price, as the cost of natural, labour, and capital resources are often significantly cheaper.