2.3.1 - 2.3.4 Flashcards
Efficiency
Resources are optimally used and waste is minimised
Productivity
Measures efficiency in the use of resource inputs
Ratio of output volume and inputs volume
Infrastructure
Basic physical systems of a business/nation
Human Capital
Collective knowledge/skills/other intelligible assets of individuals used to create economic value for the individuals/their employers/their community
Net investment
Amount spent by a company/economy on capital assets
Capital intensive
Business processes/industries that require large amounts of investment to produce a good/service
Labour intensive
Industry/processes where a larger portion of total costs are due to labour as opposed to purchase/maintenance/depreciation of capital equipment
Capacity utilisation
Measure of the extent to which productive capacity of a business is being used
Underutilised capacity
When a business has a current productive capacity less than their maximum
Over-utilised capacity
When a business is at their optimum productivity
Quality control
Mechanism that ensures that standards are met (product/service)
Quality assurance
Mechanism for ensuring quality at each stage of production
Cell production
When production is split up into smaller teams to produce more
Total quality management
TQM
Quality is looked at in every department so that the whole business can be improved
Kaizen
Continuous improvement where new ideas are added constantly
