BusMan U3 AOS3

• Efficiency is how productively a business uses its resources when producing a good or service.
• Effectiveness is the extent to which a business achieves its stated objectives
• Productivity is the ratio of outputs produced compared to the level of input used
• Competitiveness is the ability of a business to outperform its rivals
• Competitive advantage is a point of difference or superiority over a competitor
• Operations management is concerned with the coordination of resources within a business to achieve the efficient and effective output of finished goods and services.
• Inputs are the resources used by a business to produce goods and services.
• Processes are the actions performed by a business to transform inputs into outputs.
• Outputs are the final goods or services produced as a result of a business's operations system, that are delivered or provided to customers.
• Manufacturing businesses use resources and raw materials to produce a finished physical good.
• Service businesses provide intangible products, usually with the  use of specialised expertise.
• Automated production lines involve machinery and equipment that are arranged in a sequence, and the product is developed as is proceeds through each step, with the process controlled by computers.
• Robotics are programmable machines that are capable of performing specified tasks.
• Computer-aided design (CAD) is digital design software that aids the creation, modification, and optimisation of a design and the design process.
• Computer-aided manufacturing (CAM) techniques involve the use of software that controls and directs production processes by coordinating machinery and equipment through a computer.
• Artificial intelligence (AI) involves using computerised systems to simulate human intelligence and mimic human behaviour.
• Online services are services that are provided via the internet.
• Forecasting is a materials planning tool that predicts customer demand for an upcoming period using past data and market trends.
• A master production schedule (MPS) is a plan that outlines what a business intends to produce, in specific quantities, within a set period of time.
• Materials requirement planning (MRP) is a process that itemises the types and quantities of materials required to meet production targets set out in the master production schedule.
• Just in Time (JIT) is an inventory control approach that delivers the correct type and quantity of materials as soon as they are needed for production.
• Quality is the degree of excellence in a good or service and its ability to satisfy the customer.
• Quality control involves inspecting a product at various stages of the production process, to ensure it meets designated standards, and discarding those that are unsatisfactory.
• Quality assurance involves a business achieving a certified standard of quality in its production after an independent body assesses its operations system.
• Total quality management (TQM) is a holistic approach whereby all employees are committed to continuously improving the business's operations system to enhance quality for customers.
• Waste minimisation is the process of reducing the amount of unused material, time or labour within a business.
• Reduce is a waste minimisation strategy that aims to decrease the amount of resources, labour, or time discarded during production.
• Reuse is a waste minimisation strategy that aims to make use of items which would have otherwise been discarded.
• Recycle is a waste minimisation strategy that aims to transform items which would have otherwise been discarded.
• Lean management is the process of systematically reducing waste in all areas of a business's operations system whilst simultaneously improving customer value.
• Pull is a lean management strategy that involves customers determining the number of products a business should produce for sale.
• Takt is a lean management strategy that involves synchronising the steps of a business’s operations system to meet customer demand.
• One-piece flow is a lean management strategy that involves processing a product through a stage of productions and passing it onto the next stage of production before processing the next product, continuing this process throughout all stages of production.
• Zero defects is a lean management strategy that involves a business preventing errors from occurring in the operations system by ensuring there is an ongoing attitude of maintaining a high standard of quality for the final output.
• CSR is the ethical conduct of a business beyond legal obligations, and the consideration of social, economic, and environmental impacts when making business decisions.
• Global sourcing of inputs involves a business acquiring raw materials and resources from overseas suppliers.
• Overseas manufacture involves a business producing goods outside of the country where its headquarters are located.
• Global outsourcing involves transferring specific business activities to an external business in an overseas country.
• Materials management is the planning, organising and controlling of a business's supplies.
• Globalisation is the increased interdependence of countries and the movement across nations of trade, investment, technology and labour due to improvements in transport, communication and the removal of trade barriers.