2020 paper 2 Flashcards
what is total quality management?
it is a management system that helps businesses improve the quality of their products or services by getting all employees involved and focusing on customer satisfaction
what are economies of scale?
they are the cost advantages a business will obtain as it increases production where the average cost per unit falls as production increases
why does the average cost per unit fall in economies of scale?
The AVERAGE production cost for each unit falls due to bulk buying and using better equipment, which helps reduce the cost per unit.
define the term matrix structure
It is an organizational structure that organizes the way a company or business operates.
state 2 functions of the production department
- manufacturing products
- quality control
what are fringe benefits?
they are additional benefits employees receive in addition to their payment
what are 2 methods of non-financial motivation?
- providing training to employees which will enable them to work more efficiently
- by creating a good work environment that encourages teamwork and good communication between employees
what is a centralized organizational structure?
it is a way of running a business where all the important decisions are made by a small group of people at the top of the hierarchy
what is a decentralized organizational structure?
it is a way of running a business where decisions are made across many different levels and departments
define the term direct tax
It is a type of tax you pay directly to the government based on your income or wealth
what are the 2 types of lean production?
kaizen and just in time
what is kaizen?
it is a method of efficient production by making small adjustments to the production methods over time by identifying areas for improvement and to reduce waste repeatedly
what is JIT?
it is a production process to minimize waste and increase efficiency by producing what is needed when it is needed in the needed amount in that period.
