Operations

Added value

Added value

The difference between the cost of purchasing raw materials and the price the finished goods are sold for

Ecological sustainability

A capacity of ecosystems to maintain their essential functions and processes, and retain their biodiversity in full measure over the long term

Social sustainability

The ability of a community to develop processes and structures which not only meet the needs of its current members but also support the ability of future generations to maintain a healthy community

Economic sustainability

Within a business context, economic sustainability involves suing the assets of the company efficiently to allow it to continue functioning profitability over time

Job production/customised production

producing a one-off item specially designed for each customer

Batch production

Producing a limited number of identical products, each item in the batch passes through one stage of production before passing on to the next stage

Flow production

producing items in a continually moving production line, also known as line production. Continuous 24h production method

Mass production

Producing large quantities of standardised product

Process production

Producing standardised goods, typically in bulk quantities, by using a continuous input of materials and other resources

Mass customisation

The use of flexible computer-aided production systems to produce items to meet individual customers' requirements at mass production cost levels

Cell production

A lean method of producing similar products using cells, or groups of team members to facilitate operations by eliminating setup time between operations

Optimal location

a business location that gives the best combination of quantitative and qualitative factors

Quantitative factors

These are measurable in financial terms and will have a direct impact on either the costs of a site or the revenues from it and its profitability

Qualitative factors

Non-measurable factors that may influence business decisions

Outsourcing

Using another business to undertake a part of the production process rather than doing it within the business using the firm's own employees

Subcontracting

The practice of assigning to another business part of a contract

Business-process outsourcing (BPO)

A form of outsourcing that uses a third party to take responsibility for certain business functions, such as HR and finance

Offshoring

The relocation of a business process done in one country to the same or another company in another country

Multinational

A business with operations or production bases in more than one country

Insourcing

The reverse of outsourcing as it is undertaking a business function or process within the business rather than contracting it to another business

Inshoring

Ending offshoring contracts with overseas suppliers and returning functions or processes to business operations in the home country