TERMS

• Inventory management

  Determining quantities of inputs for customer requirements being met and the storage of inputs (e.g. raw material)
• Manufacturing

  Managing labour costs, wastage cost, defects and reworks when required
• Quality

  Determining required standards and procedures for quality
• Maintenance


  Ensuring that equipment and machinery are in working order and controlling maintenance costs and keeping up to date and accurate maintenance records
• Operations management

  The coordinating and organising of activities involved in producing the goods and services that a business sells to customers
• Business objectives

  The stated, measurable targets of how to achieve business goals (profit, increase market share, meet shareholder expectations, fulfil market need/social need, to improve efficiency and to improve effectiveness)
• Efficiency

  The best used of resources in the production of goods and/or services
• Effectiveness

  The degree to which a business achieves it stated objectives/the ability of a business strategy to achieve an intended or expected outcome
• Productivity


  The number of goods and services that are produced compared to the number of resources used in the production process
• Key elements of an operation system

  • Input:
  • Process:
  • Outputs
• Manufacturing Business


  Businesses that create finished goods (tangible products) through the production process
• Service Business


  Businesses that produce intangible products known as services (people sell their labour and expertise)
• Input

  The resources used by a business to produce goods and services
• Process

  The actions performed by a business to transform inputs into outputs.
• Outputs

  The final goods or services produced as a result of a business’s operations system, that are delivered or provided to customers.
• Technological Developments 


  The process of using new equipment and knowledge to assist a business to create products
• Automated Production line 


  Involves machinery equipment that are arranged in a sequence, and the product is developed as it proceeds through each step

  It is a process where raw materials enter, and finished products leave with little to no human intervention.
• Robotics 


  Programmable machines that are capable of performing specified tasks. Automated production lines often involve the use of robotics
• Computer Aided Design (CAD)


  Digital design software that aids the creation, modification and optimisation of design and the design process

  -A computerised program that facilitates creation and modification of design.
• Computer Aided Manufacturing (CAM)


  The use of software that controls and directs production processes by coordinating machinery and equipment through a computer
• Artificial intelligence 


  Involves using computerised systems to simulate human intelligence and mimic human behaviour

  -AI is a powerful tool that allows a machine to perform functions that would otherwise require human input
• Online services 


  Services provided via the internet
• Materials management 


  The inward flow of materials, including movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.
• The materials management strategies 


  -Forecasting

  -Master production schedule

  -Materials requirement planning

  -Just in time
• Forecasting 


  Materials planning tool that relies on data from the past and present and analysis of trends to attempt to determine future events.
• Master Production Schedule (MPS) 


  Statement of what a business intends to produce, in what quantities over a set time frame

  -Taking into account forecast customer demand and production costs
• Materials Requirement Planning (MRP)


  an inventory management system used to schedule and place materials orders. It involves an itemised list of all materials involved in  production to meet the specified orders.
• Just in Time (JIT) 


  An inventory management system that aims to avoid holding any stock (either as inputs or finished goods). Supplies arrive just as needed for production, and finished products are immediately dispatched or sold to customers.
• Quality


  The degree of excellence in a product of services and its ability to satisfy customers
• Quality Control


  • Process of checking the quality standards of work done or quality of raw materials or component parts
  • It is a reactive strategy
• Quality Assurance


  • Business achieving certified standards of quality in its production after an independent body assesses its operations
  • It is a proactive strategy
• Total Quality Management


  • Holistic approach whereby all employees are committed to continuously improving the business's operations system to enhance quality to customers
  • It is a proactive strategy
  • Quality circles
• Waste


  Any resource (raw material, labour and time) which is discarded after use, or it is worthless, defective or of no use
• Waste Minimisation


  A process involving the reduction of the amount of unwanted or unusable resources produced by a business in an attempt to improve the efficiency and effectiveness of operations
• Reduce


  A waste minimisation strategy that aims to decrease the amount of resources, labour, or time discarded during production
• Reuse


  A waste minimisation strategy that aims to make use of items which would otherwise be discarded
• Recycle


  A waste minimisation strategy that aims to transform items which would otherwise been discarded
• Lean Management


  The process of systematically reducing waste in all areas of production while improving customer value
• Pull


  A lean management strategy that involves customers determining the number of products a business should produce for sale
• One piece flow


  A lean management strategy that involves processing a product individually through a stage of production and passing it onto the next stage of production before processing the next product, continuing this process throughout all stages of production