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Question	Answer
Operations management	consists of all the activities in which managers engage to produce goods or services.
Tangibles	are goods, which can be touched.
Intangibles	include services, which cannot be touched.
Inputs	are resources used in the process of production.
Transformation	is the conversion of inputs (resources) into outputs (goods or services).
Outputs	refer to the end result of an organisation’s efforts — the service or product that is delivered or provided to the consumer.
Procurement	refers to the process of researching and selecting suppliers, establishing payment terms, negotiating contracts, and the actual purchasing of resources that are vital to the operations of the business.
Automated production line	comprised of machinery and equipment arranged in a sequence with components added to the good as it proceeds through each step, with the process controlled by computers.
Robotics	highly specialised forms of technology capable of complex tasks.
Computer aided design	a computerised design tool that allows a business to create product possibilities from a series of input parameters.
Computer aided manufacturing	is software that designs and controls manufacturing processes.
Computer integrated manufacturing	a method of manufacturing in which the entire production process is controlled by a computer.
Materials management	is the strategy that manages the use, storage and delivery of materials to ensure the right amount of inputs is available when required in the operations system.
Inventory	is the goods and materials held as stock by a business.
Materials handling	is the physical handling of goods in warehouses and at distribution points.
Forecasting	is a materials planning tool that relies on data from the past and present and analysis of trends to attempt to determine future events.
Production plan	an outline of the activities undertaken to combine resources (inputs) to create goods or services (outputs).
Master production schedule	a plan that details what is to be produced and when.
Materials requirement planning	involves developing an itemised list of all materials involved in production to meet the specified orders.
Inventory control	ensures that costs are minimised and that the operations system has access to the right amounts of inputs when required.
Just in time	a materials management strategy that ensures that the exact amount of material inputs will arrive only as they are needed in the operations process.
Quality	refers to the degree of excellence of goods or services and their fitness for a stated purpose.
Quality control	involves the use of inspections at various points in the production process to check for problems and defects.
Quality assurance	involves the use of a system so that an organisation achieves set standards in production.
Total quality management	is an ongoing, organisation-wide commitment to excellence that is applied to every aspect of the organisation’s operation.
Quality circles	are groups of workers who meet to solve problems relating to quality.
Continuous improvement	involves an ongoing commitment to achieving perfection.
Waste minimisation	is 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.
Lean management	is an approach that improves the efficiency and effectiveness of operations by eliminating waste and improving quality.
Six Sigma	is a quality management approach that seeks to identify and remove the causes of problems in the operations process, achieving virtually defect-free production.
Global sourcing	is the practice of seeking the most cost efficient materials and other inputs, including from countries overseas.
Overseas manufacture	refers to the production of a good in a country that is different to the location of the business’s headquarters.
Outsourcing	the contracting of a specific business operation to an external person or business.
Supply chain	the range of suppliers from which the business purchases materials and resources.

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	Created by Katelyn Gorman over 6 years ago