bus trial

• Operations

  refers to long-term, broad aims affecting all key business areas
• Strategic role of operations

  refers to the long term contribution of the operations function to the business.
• Cost leadership

  involves aiming to have the lowest costs or to be the most price-competitive in the market.
• Good/ service differentiation

  The creation of points of difference within a product, so that it is different to its competitors, and therefore providing a competitive advantage.
• Productivity


  is increasing the level of outputs per given level of inputs.
• Economies of scale

  cost advantages that enterprises obtain due to their scale or size of operation with cost per unit of output decreasing with increasing scale.
• Profit centre

  aspects of a business that directly derive revenue and profits
• Cost centre

  are particular areas, departments or sections of a business where costs can be directly attributed.
• Standardised goods

  are those that are mass-produced, usually on an assembly line. They are uniform in quality and meet a predetermined level of quality. These are generally produced with a production focus.
• Customised goods

  are those that vary according to the needs of customers. These goods are produced with a market focus rather than a production focus.
• Perishable goods


  are those food goods that are at risk of decay or deteriorate over time, particularly if not stored correctly.
• Non-perishable goods

  are goods that can be stored as inventory for longer periods of time, and the quality or lifespan of the product needs to be ensured.
• Independence


  refers to the mutual dependence that the key business functions have on one another.
• Marketing


  is the function of the business responsible for researching and developing the product concept, based on identifying potential gaps in the market.
• Cross branding

  A marketing strategy which combines two offerings from separate companies. The technique is usually used to sell complementary products or services.
• Strategic alliance

  an agreement between two or more parties to pursue a set of agreed upon objectives needed while remaining independent organisations.
• Influences

  are things that are internal or external to the business environment that will have some degree of impact over how the business undertakes its transformation process.
• Globalisation

  refers to the removal of barriers of trade between nations
• A supply chain

  is an entire system of producing and delivering a product or service, from the very beginning stage of sourcing the raw materials to the final delivery of the product or service to end-users
• Technology

  is the design, construction and/or application of innovative devices, methods and machinery upon operations processes
• Quality expectations


  refer to the expected and/or perceived level of quality that consumers expect to be present in a final product
• Fixed costs


  those that are not dependent on the level of operating activity in a business
• Variable costs

  those that vary in direct relationship to the levels of operating activity or production
• Government policies

  are the direct decisions of government which can have a significant influence over the operational decisions made by business
• The Instant Asset Tax Write-Off

  is a government policy aimed at increasing business spending on capital equipment
• Legal regulation

  refers to the range of laws and regulations with which businesses must comply or risk significant penalties
• Environmental sustainability

  is concerned with whether environmental resources will be protected and maintained for future generations
• Corporate Social Responsibility

  refers to the understanding that corporations have a degree of responsibility not only for the economic consequences of their activities, but also for the social and environmental implications
• Inputs

  the resources used in the transformation (production) process.
• Transformed resources (inputs)

  are those inputs that are changed or converted in the operations process; they are transformed by the operations processes.
• Materials

  the basic elements used in the production process
• Raw materials

  the essential substances in their unprocessed state. e.g. coal, wheat, water, tree
• Intermediate goods

  goods manufactured and used in further manufacturing or processing. e.g. wood used for floorboards, steel fur building stuff, stuff in sandwich.
• Information

  the knowledge gained from research, investigation and instruction, which results in an increase in understanding.
• External information

  information that comes from market reports, statistics from industry observers and industry bodies, official government statistics from the ABS, media reports, academic papers and commentary, management journals and comparative studies.
• Internal information

  information that comes from within the business and is gathered from internal sources such as financial reports, quality reports, and internal key performance indicators (KPI's) such as lead times, inventory turnover rates and production data.
• Facilities

  refer to the plant (factory or office) and machinery used in the operations processes.
• Volume


  how much of a product is made
• Volume flexibility

  how quickly the transformation process can adjust to an increase in demand.
• Variety


  the range of products made or the mix of products or services offered, also known as mix flexibility