31 terms in 3.4
buffer stock
Spare inventory held to buffer against demand variations/supply disruptions.
Making operational decisions to improve performance: managing inventory and supply chains
capacity
Maximum production level in period.
Analysing operational performance
capacity utilisation
Percentage of available capacity actually used.
Capital-Intensive
A production method or business that relies heavily on machinery, equipment, and technology rather than labour to produc...
Making operational decisions to improve performance: increasing efficiency and productivity
Control (Quality)
Inspection/testing during/after production ensuring standards.
Setting operational objectives
efficiency
Achieving output with minimum resources.
Global Supply Chain
Network of suppliers, manufacturers, distributors spanning multiple countries.
Idle Capacity
Unused production capacity; output below potential.
Inequality
Unequal distribution of resources, income, opportunity.
Inspection (Quality)
Examination of products to ensure they meet standards before delivery to customers.
inventory
(Stock).
Inventory Holding Costs
Costs of keeping inventory: storage, insurance, obsolescence, deterioration, financing.
Just in Time (JIT)
A lean production approach where materials and components are ordered and delivered just as they are needed in the produ...
labour intensive
Business/process requiring large workforce relative to capital/technology.
labour productivity
Output produced per unit of labor (typically per employee per hour).
lean production
Production system eliminating waste; maximizing value.
operational objective
Short-term target for daily/weekly operations.
outsourcing
(already covered - see 1.4).
Over-Capacity
Production capacity exceeding market demand.
productivity
A measure of output per unit of input, showing how efficiently resources are being used to produce goods or services.
quality assurance
Processes preventing defects before/during production (proactive).
Making operational decisions to improve performance: improving quality
Quality Circles
Small employee groups meeting regularly to identify/solve quality problems.
quality control
Inspection/testing to identify defects (reactive).
Quality Management
Systematic approach ensuring products/services meet standards consistently.
Spare Capacity
Unused production capacity available for growth.
Stock Control
The process of managing inventory levels to ensure the business has enough stock to meet demand while minimising holding...
supply chain
Network of organizations/processes producing/delivering product from materials to customer.
Supply Chain Ethics
The application of ethical standards throughout the entire supply chain — from raw material extraction to final product ...
Total Quality Management (TQM)
Comprehensive approach making quality responsibility of all employees.
Under-Capacity
Production capacity below available maximum.
unit cost
Cost per item produced.