Elizabeth Clifford
Flashcards by , created about 6 years ago

Business Studies (Operations) Flashcards on Operations, created by Elizabeth Clifford on 25/03/2013.

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Elizabeth Clifford
Created by Elizabeth Clifford about 6 years ago
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Question Answer
Transformation Any changes to inputs that adds value and converts them to outputs.
Inputs The raw materials, components and parts used to produce a good or supply a service.
Outputs What is made or supplied by the operations process. The product the business will on-sell to customers.
Productivity A measure of how efficiently goods and services are produced. It is usually measured in terms of output per labour hour.
Competitive Advantage The use of specific strategies to gain an advantage over competitors. Could be based on cost of production, quality, unique product features etc.
Efficiency Achieving maximum output with the minimum level of inputs. It involves achieving an objective without wasting resources and keeping costs as low as possible.
Cost Leadership Operations strategy - involves being the cheapest producer of a product in the market - means you can either undersell your competitors or sell for the same price and make increased profits. eg. Air Asia
Product Differentiation (Good/service Differentiation) Operations Strategy - to have different features to your competitors to create a competitive advantage.
Economies of Scale When mass producing, a business can buy inputs cheaper 'in bulk'. The more outputs the business produces, the larger volume of inputs they can purchase. This will bring their overall costs of production down.