Operations and Management Flashcards

What is a bottleneck in business operations?

Answer: A point in a process that limits overall throughput and slows the entire operation

A bottleneck is any constraint or limiting factor in a workflow that reduces the capacity and output of the entire system.

What is the purpose of quality control in a business?

Answer: To ensure products and services meet established standards before reaching customers

Quality control involves inspecting and testing outputs to ensure they meet required standards, preventing defective products or poor service from reaching customers.

What is outsourcing?

Answer: Contracting specific business functions or processes to external third-party providers

Outsourcing involves delegating specific tasks or business functions to external companies or specialists, often to reduce costs or access expertise not available internally.

What does cash flow management involve?

Answer: Tracking and optimizing the timing and amount of money moving in and out of a business

Cash flow management involves monitoring inflows and outflows of cash to ensure the business can meet its financial obligations and avoid insolvency.

What is a vendor in the context of business operations?

Answer: A company or individual that supplies goods or services to a business

A vendor is a supplier who provides goods or services to a business, forming a critical link in the supply chain.

What does operational efficiency mean?

Answer: Maximizing output while minimizing input costs and wasted resources

Operational efficiency is the ability to deliver products or services as cost-effectively as possible without sacrificing quality or customer satisfaction.

What is capacity planning?

Answer: Determining the production capacity needed to meet current and anticipated future demand

Capacity planning ensures a business has sufficient resources — equipment, workforce, and space — to meet demand without over- or under-investing.