4.1 The Nature of Operations Quizs

Capital-intensive production

• means there is a high proportion of capital (for example, machinery) used relative to other factors of production.

• is characterized by a low level of investment in machinery and equipment.

• involves a significant amount of labor relative to capital investment.

• is primarily focused on the use of natural resources rather than machinery.

Sustainable activities

• are those that meet the needs of the business or of society without compromising on the ability to meet future needs.

• are activities that only focus on short-term profits.

• are practices that disregard environmental impact.

• are actions that do not require any resources.

Productivity

• measures the output per hour, per person or per machine.

• is defined as the total number of products manufactured.

• is the ratio of inputs to outputs in a production process.

• is the amount of time taken to complete a task.

Operations management

• oversees the planning, co-ordination and control of the transformation process, turning resources (inputs) into outputs.

• focuses solely on the financial aspects of a business.

• is primarily concerned with marketing strategies.

• deals exclusively with human resource management.

Labour-intensive production

• means there is a relatively low proportion of labour (employees) used relative to other factors of production.

• means there is a relatively high proportion of labour (employees) used relative to other factors of production.

• means that technology is the primary factor of production.

• is characterized by minimal employee involvement in the production process.

Inventory

• refers to the stocks held in a business, such as materials and semi-finished goods.

• is the total amount of money a business has in its bank account.

• includes only the finished goods ready for sale.

• is the equipment used in the production process.

Output of a business

• is the total amount produced in a given time period.

• is the total revenue generated from sales.

• is the total number of employees in a company.

• is the total profit after expenses are deducted.