Operations Management

  1. Subcontracting
    using a supplier to manufacture part or all of a firms product or service
  2. Stocks
    Materials or finished goods held by a firm as needed to supply customers demand
  3. Rationalisation
    reorganisating resources to cut costs -often leading to a cut back in capacity.
  4. Excess Capacity
    when a business has a great production capacity than is likely to be used in the foreseeable future
  5. Overtime
    Staff working beyond their contracted hours in exchange for a higher hourly wage
  6. Capacity Utlisation
    Is the proportion that the current output is of full capacity output.
  7. Unit cost
    The average cost per unit of output
  8. Quality Product
    a product or service that meets customers expectations and is therefore 'fit for purpose'
  9. Quality Standards
    the expectations of customers expressed in terms of the minimum acceptable production or service standards
  10. Quality control
    this is bases on inspection of the products or a sample of the products
  11. Quality Assurance
    this is a system of agreeing and meeting the quality standards at each stage of production to ensure consumer satisfaction
  12. ISO 9000
    This is an internationally recognised certificate that acknowledges the existence of a quality procedure that meets certain conditions
  13. Total Quality management
    An approach to quality that aims to involve all employees in the quality improvement system
  14. Supplier relationship
    these are links with the companies that supply a business with goods and service
  15. Customer service
    The provision of service to customers before, during and after purchase to the standard that meets customer expectation
  16. Internal customers
    people within the organisation who depend upon the quality of work being done by other
  17. Service level agreement
    agreements or contracts with suppliers that clearly lays down the service that they must provide
  18. Information technology
    The use of electronic technology to gather, store, process and communicate information
  19. Robot
    computer controlled machine able to perform a physical task
  20. Sustainability
    production systems that prevent waste by using the minimum of non-renewable resources so that levels of production can be sustained in the future
  21. Operational Targets
    there are specific and usually measurable objectives set for each operations activity of a business
Card Set
Operations Management
Unit 2