2.3.2 Flashcards
Batch production
When goods or parts of goods are made in groups or batches that are similar
flow production
When identical items are made on a continuous production line
job production
Production of unique or one-of-a-kind goods. The item is made from start to finish and requires a high level of skill and expertise
productivity
How efficiently factors of production are used to generate output - calculated by comparing output to input (often workers)
buffer stock
Minimum amount of stock a firm will hold in a traditional bar-gate stock system
Just-in-time
A lean stock control system which relies on holding minimal stock and instead delivering stock as needed
lead time
The delay between placing an order and receiving it
quality
Delivering a high standard product or service to the customer
quality control
Where a business implements systems to check for quality, usually at the end of the production process
automation
Using machinery or robotics to do jobs instead of using people to do them
profit
The proportion of revenue left over after costs have been deducted
Cost per unit (average cost)
How much it costs to make each product or service, taking into consideration all of the variables
