Unit 5 - Operations Management Flashcards Preview

IB Business Management HL 2016+ > Unit 5 - Operations Management > Flashcards

Flashcards in Unit 5 - Operations Management Deck (57)
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1

batch production

producing a set of identical products

2

benchmarking HL

process of identifying best practice in an industry, in relation to products, processes and operations; it sets the standards for firms to emulate

3

capacity utilisation HL

measures the existing level of output of a firm as a proportion of its potential output

4

capital intensive

production relies heavily on machinery and equipment

5

cell production

production where workers are organised in independent cells with multi-skilled team members

6

cost-benefit analysis HL

tool that compares the financial costs of a decision with the quantitative benefits of that decision

7

infrastructure

transportation, communication and support networks in certain areas

8

innovation HL

commercial development, use and exploitation of an invention or creative idea that appeals to customers

9

ISO 9000 HL

most widely recognised standard for quality management

10

job production

production of a unique or one-off job

11

just-in-case JIC HL

traditional stock management system that maintains buffer stocks (reserve stock) in case there are any emergencies (such as delayed delivery of stocks) or supply and demand fluctuations

12

just-in-time JIT HL

stock control system whereby materials and components are scheduled to arrive precisely when they are needed in the production process

13

Kaizen HL

approach in the workplace where small groups of employees (Kaizen groups) are constantly trying to find ways to improve work processes and tasks

14

lead time HL

duration between placing an order and receiving it

15

lean production HL

approach used to eliminate waste in an organisation

16

location

geographical position of a business

17

make-or-buy decision HL

firm has to decide between manufacturing a product or buying it from a supplier

18

mass production

large-scale manufacturing of a standardised product

19

maximum stock level HL

upper limit of stock determined by physical storage and level of demand for output

20

minimum stock level HL

lowest amount of stock determined by precautionary measures

21

optimum stock level HL

ensures that there are suffcient stocks for uninterrupted production, but also minimises stock costs

22

process innovation HL

changes in the way production takes place in order to improve the method of production, e.g. using new technologies

23

product innovation HL

new creations or the radical development of existing products, e.g. improved functionality of product

24

production process

turning factor inputs into outputs by adding value in a cost-effective way

25

productivity HL

measures the level of labour and/or capital efficiency of a business by comparing its level of inputs with the level of its outputs

26

quality HL

goods or services must be fit for its purpose by meeting or exceeding the expectations of the customer

27

quality assurance HL

methods used by a business to reassure customers about the quality of its products by meeting certain quality standards

28

research and development R&D HL

technological and scientific research that helps to generate a flow of new ideas and processes

29

specialisation

division of a large task or project into smaller tasks that allow individuals to concentrate on an area of expertise

30

standardisation

producing an identical or homogenous product in large quantities, e.g. newspaper