The effective use of resources to minimise inputs and maximise outputs to meet customer needs eg. designing, manufacturing and ordering supplies
Factors Wasting Finance
Production errors waste labour, time and components and breakdowns lead to lower output this can be stopped using preventative maintenance
Role and Importance of Suppliers
Suppliers do a lot of the operational work a company must negotiate with suppliers for the best price eg. if Coca-Cola runs out of cans they lose out on potential profit
Quality
The standard is measured against similar goods and is a combination of real and psychological factors (customer satisfaction)
Quality Objectives
Meet customer needs, arrive on time and in good condition, lasts as long as expected, effective customer and after-sales service
Factors Affecting Efficiency
Using resources fully, use high-productivity processes, technological advancements and IT for management
Enterprise Resource Planning (ERP)
Planning that logs all of a firm's costs, working methods and resources (machinery, labour, stock) in a piece of software to answer questions
Design
A product or service made to satisfy specific customer needs requires research & development
Manufacturing
The process by which goods are produced from raw materials this process adds value to the good eg. car parts to a car
