Business and Management (Operations Management)

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Job Production
Involves one-off/unique item (e.g. wedding dress)
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Job Production (ADS and DISADS)
Ads: inelastic demand (luxury), better quality Disads: Labour intensive, time-consuming
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Batch Production
Group of items produced together; in a batch (bread)
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Batch Production (ADS and DISADS)
Ads: cheaper to produce (materials bought in bulk), machines used more effectively Disads: requires careful planning, stock goes out of fashion
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Flow Production
continuous movement of items (Mars Bars)
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Flow Production (ADS and DISADS)
Ads: capital intensive, lower costs Disads: difficult to start-up, inflexible (everything is standardized)
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Cell Production
Split flow producing individual units of work (motor of a car)
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Cell Production (ADS and DISADS)
Ads: low unit costs, some customization Disads: expensive to set up, limited to product type
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Mass Customization
Use of computer-aided systems to produced customized products via flow production
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Mass Customization (ADS and DISADS)
Ads: high quality, motivation (job enrichment) Disads:requires well-skilled workforce, higher costs
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Fixed Costs
Doesn't vary with output (machinery)
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Variable Costs
Varies with output (wages)
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Semi-Variable Costs
Have both a fixed and variable element (taxi)
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Total Costs
Fixed + variable costs
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Direct Costs
Directly linked to one product/service (wages)
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Indirect Costs
Not directly linked AKA overheads (rent)
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Marginal Costs
Producing one more unit of output (last person in a plane)
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Break-even point
fixed cost/contribution (total revenue=total cost)
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Contribution
price-variable cost per unit
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Margin of Safety
Allows to see how much fewer can be produced and still break-even
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Quality Control
Based on inspection of product or sample (done after production)
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Quality Assurance
Meeting quality standards at each stage of production
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Quality Management
Involves all employees in quality improvement
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Quality Insurance
Check the problem at the time it occurs
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ISO 9000
Internationally recognized certificate - Quality procedure
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Lean Production
Minimum wastage, while maintaining high quality
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Kaizen
Continous improvement (Japanese method/theory)
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Bench Marking
Comparing performance (including quality) of a business with performance standards throughout the industry
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Innovation
Practical application of new inventions into marketable product
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Intellectual Property
Creations of mind (inventions) used in a business
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Cost Centre
Subunit of company responsible only for its costs (production departments)
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Profit Centre
Subunit of company responsible for revenues and costs (planning and control)
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Globalisation
Process by which the world is becoming increasingly interconnected as result of massively increased trade and cultural exchange (multinational companies)
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Patent
Legal right to be sole producer/seller of an invention for certain period of time
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Copyright
Legal right to protect or be sole beneficiary of artistic/literary works
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Trademark
Distinctive name, symbol, motto or design that identifies business/products (can be legally registered)
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4 main types of stock
raw materials, spares, work-in-progress, finished goods
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Factors in deciding location
Facilities, logistics, labour, community and site, trade zones, environmental regulaitons
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Offshoring
Relocation of business process from one country to another
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Outsourcing
Obtain good/ service by contract from outside supplier
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Optimal Location
Location that gives best quantitative and qualitative factors
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JIC (just in case)
Holding high stock levels 'just in case' there is production problem or unexpected upsurge in demand
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JIT (just in time)
Avoids holding stock by requiring supplies to arrive just as they are needed in production
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Capacity utilisation
current output level/max output level x 100 = rate of capacity utilization
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Ideal capacity rate
90% so that quality doesn't decrease and costs for fixing machine don't increase
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Free Float
EST(c)-(EST(l)+duration)
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Total Float
LFT-(EST+duration)
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Other cards in this set

Card 2

Front

Ads: inelastic demand (luxury), better quality Disads: Labour intensive, time-consuming

Back

Job Production (ADS and DISADS)

Card 3

Front

Group of items produced together; in a batch (bread)

Back

Preview of the back of card 3

Card 4

Front

Ads: cheaper to produce (materials bought in bulk), machines used more effectively Disads: requires careful planning, stock goes out of fashion

Back

Preview of the back of card 4

Card 5

Front

continuous movement of items (Mars Bars)

Back

Preview of the back of card 5
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