BUSS3 Key Term Glossary: Operational Strategies

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  1. Capital intensity
    The extent to which   production or operations depend on investment in and use of capital – i.e.  machinery, IT systems, buildings etc
  2. Critical path analysis
    Project management tool   that uses network analysis to help manage complex and time-sensitive   operations
  3. Diseconomies of scale
    Factors which result in   higher unit costs as production output reaches too high a level
  4. Economies of scale
    Cost advantages that a   business can exploit as a result of expanding its scale of production.  Economies of scale reduce the average   (unit) cost of production
  5. Efficiency
    A measure of the ability of   a business to achieve the required level of production whilst minimising the   use of resources
  6. Industrial inertia
    Where a business decides to   stay in its existing location despite potentially better locations being   available to it
  7. Innovation
    Putting an new idea or   approach into action – the commercial exploitation of ideas
  8. Just-in-time
    Method of lean production   where production resources arrive at the moment they are required rather than   being held in stock
  9. Kaizen
    A cultural approach to lean   production and quality assurance.   Involves encouraging employees to constantly seek and implement small   incremental changes to production in order to improve quality and efficiency
  10. Labour intensity
    The extent to which   production or operations depend on investment in and use of labour – i.e.  people, training
  11. Labour productivity
    The level of output per   unit of labour
  12. Lead-time
    The period of time between   an order being placed and being received
  13. Lean production
    An approach to management   that focuses on cutting out waste whilst still ensuring quality.
  14. Marketing economies
    Where marketing costs per   unit sold can be lowered by spreading marketing costs over larger output
  15. Minimum efficient scale
    The minimum output a   business needs to achieve in order for its to be able to minimise unit costs
  16. Multinational
    A business which owns   operations in more than one country
  17. Network analysis
    Breaking a project down   into separate activities and their requirements
  18. Offshoring
    Where a business has work   done for it overseas
  19. Outsourcing
    Where a business has work   done for it by someone else
  20. Productivity
    Measures of how effective a   business is in turning resources (e.g. labour hours) into output
  21. Purchasing economies
    Cost savings that arise   from buying in bulk or from a more powerful relationship with a supplier due   to increased output
  22. Quota
    A restriction on the volume   or quantity of a good that can enter or be sold in a market (form of trade   barrier)
  23. Scale
    The size or output of a   business, best measured relative to that of direct competitors
  24. Subcontracting
    Part of outsourcing – where   another business is used to provide part of the production process
  25. Tariff
    A tax levied on imports to   increase their price compared with domestic goods (form of trade barrier)
  26. Technical economies
    Reductions in unit costs   arising from the effective use of technology
  27. Unit costs
    The key measure of   productive efficiency – calculated as total costs divided by total output   (over a specific period)
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BUSS3 Key Term Glossary: Operational Strategies
2014-05-05 17:37:56
business term
BUSS3 Key Term Glossary: Operational Strategies
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