Business Management U3 AOS 3

automated production line

comprised of machinery and equipment arranged in a sequence with components added to the good as it proceeds through each step, with the process controlled by computers

business competitiveness

the ability of a business to sell products in a market

computer-aided design

a computerised design tool that allows a business to create product possibilities from a series of input parameters

computer-aided manufacturing (CAM)

the use of software to direct and control manufacturing processes

continuous improvement

an ongoing commitment to achieving perfection

environmental sustainability

a business making decisions that will allow it, and the rest of society, to continue to interact with the environment

forecasting

a materials planning tool that relies on data from the past and present and analysis of trends to attempt to determine future events

global sourcing

the practice of seeking the most cost efficient materials and other inputs, including from countries overseas.

global outsourcing

the contracting of a specific business operation to an external person or business in another country

inputs

resources used in the production process

intangibles

services that cannot be touched

inventory

goods and materials held as stock by a business

inventory control

ensures that costs are minimised and that the operations system has access to the right amounts of inputs when required

just in time

a materials management strategy that ensures that the right amount of material inputs will arrive only as they are needed in the operations process

lean management

An approach that improves the efficiency and effectiveness of operations by eliminating waste and improving quality

Master Production Schedule

a plan that details what is to be produced and when

materials handling

Physical handling of tangible goods, supplies, and resources

Materials Requirement Planning (MRP)

involves developing an itemised list of all materials involved in production to meet the specified orders

operations management

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

overseas manufacture

the production of a good in a country that is different to the location of the business's headquarters

outputs

the end result of a business's efforts — the service or product that is delivered or provided to the consumer

procurement

the process of researching and selecting suppliers, establishing payment terms, negotiating contracts, and the actual purchasing of resources that are vital to the operations of the business

production plan

an outline of the activities undertaken to combine resources (inputs) to create goods or services (outputs)

quality

the degree of excellence of goods or services and their fitness for a stated purpose

quality assurance

the use of a system so that a business achieves set standards in production

quality circles

groups of workers who meet to discuss ways of improving products or processes

quality control

the use of inspections at various points in the production process to check for problems and defects

robotics

highly specialised form of technology capable of complex tasks

supply chain

the range of suppliers from which the business purchases materials and resources

tangibles

goods that can be touched

total quality management

an ongoing, business-wide commitment to excellence that is applied to every aspect of the business's operation

transformation

the conversion of inputs into outputs

waste minimisation

a process involving the reduction of the amount of unwanted or unusable resources produced by a business in an attempt to improve the efficiency and effectiveness of operations

website development

the creation and/or improvement of a connected group of pages on the internet that will be maintained by a business to promote and sell its products