Flashcards for content: 2.4

Question	Answer
Efficiency	Producing a level of output where average cost is minimised.
Productivity	The output per unit of input per time period.
Job production	Involves the production of a single product at a time.
Batch production	A method that involves completing one operation at a time on all units before performing the next.
Flow production	Large-scale production of a standard product, where each operation on a unit is performed continuously on after the other, usually on a production line.
Cell production	Involves producing a family of products in a small self-contained unit (a cell) within a factory.
Capital intensive	Production methods that make more use of machinery relative to labour.
Labour intensive	Production methods that make more use of labour relative to machinery.
Capital productivity	The amount of output each unit of capital (e.g. one machine) products.
Labour productivity	The amount of output each unit of labour (e.g. one worker) produces.
Specialisation	In business, the production of a limited range of goods.
Division of labour	Specialisation in specific tasks or skills by an individual.
Standardisation	Using uniform resources and activities or producing a uniform product.
Lean production	An approach to operations that focuses on the reduction of resource use. (i.e. using few resources to minimise waste)
Kaizen	A Japanese term that means continuous improvement.
Outsourcing	Giving work to sub-contractors, usually to reduce costs.
Production	The transformation of resources into goods or services.
Capacity Utilisation	The use that a business makes of its resources. Image: Capacity Utilisation (image/png)
Excess or surplus capacity	When a business has too many resources, such as labour and capital, to produce its desired level of output.
Fully capacity	The point where a business cannot produce any more output.
Mothballing	Leaving machines, equipment or building space unused, but maintained, so they could be brought back into use if necessary.
Over-utilisation	The position where a business is running at full capacity and 'straining' resources.
Under-utilisation	The position where a business is producing at less than full capacity.
Rationalisation	Reducing the number of resources particularly labour of capital, put into the production process, usually undertaken because a business has excess capacity.
Stock control diagram	Image: Stock Control Diagram (image/png)
Buffer stocks	Stocks held as a precaution to cope with unforeseen demand.
Kanban	A card or object that acts as a signal to move or provide resources in a factory.
Lead time	The time between placing the order and the delivery of goods.
Re-order level	The level of current stock when new orders are placed.
Re-order quantity	The amount of stock ordered when an order is placed.
Stock rotation	The flow of stock into and out of storage.
Work-in-progress	Partly finished goods.
Just-in-time (JIT) management of stock	A ‘pull’ system of production, so actual orders provide a signal for when a product should be manufactured.
Quality	Features of a product that allow it to satisfy customers' needs. It may refer to a certain standard of excellence.
Quality control	Making sure that the quality of a product meets specific quality performance criteria.
Quality assurance	A method of working for businesses that takes into account customers' wants when standardising quality. It often involves guaranteeing that quality standards are met.
Total quality management (TQM)	A managerial approach that focuses on quality and aims to improve the effectiveness, flexibility and competitiveness of the business.
Quality chains	When employees form a series of links between customers and suppliers in business, both internally and externally.
Quality circles	Groups of workers meeting regularly to solve problems and discuss work issues.
Statistical process control	The collection of data about the performance of a particular process in a business. Often used to monitor quality as part of TQM.

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Flashcards for content: 2.4

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	Created by J Brookes about 7 years ago