2.4 Flashcards
Batch production
Goods are produced in groups of limited number of identical products
Cell production
Employees organised into multi skilled teams with each team responsible for particular part of production process
Flow production
Production of goods is in a continuous process usually on an assembly line
Job production
Production of single good or service is carried out one at a time so it is catered to specific customer needs and is bespoke
Capital intensive
Output of a firm is made primarily using machinery
Labour intensive
When output is made using higher proportion of labour than capital
Efficiency
Minimising waste therefore reducing cost of production to make best use of recourses
Productivity
A measure of how efficiently a company generates profit relative to its revenue or investment
Standardisation
Using uniform recourses and activities or producing a uniform product
Capacity Utilisation
Current output of a workplace measured as a percentage of total maximum output
Downsizing
Involves reducing capacity , such as making employees redundant which reduces costs such as wages
Full capacity
The point where business cannot produce any more output
Over utilisation
The position where a business is running at full capacity and straining recourses
Under utilisation
The position where a business is producing at less than full capacity
Buffer stock
Minimum level of stock that is held in reserve to protect against surges in demand or late delivery by suppliers
Inventory
Stock held by a business
Just In Time
Stock control system that organises operations so that items of stock arrive immediately before they are needed for production or sale
Lean Production
Using as few resources as possible in the production of a good or service
Can include concepts such as waste minimisation
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
Items held by the business for future sales
Stock control
The optimum quantity of goods or components a business holds for the purpose of resale or production
Stock control diagram
Show detail of inventory movements such as minimum and maximum inventory levels, re order level and quantity and lead times
Stock rotation
The flow of stock into and out of storage
Waste minimisation
Producing goods and services using a few recourses as possible
Work in progress
Partially finished goods
Kaizen
Japanese practice which places emphasis on making small improvements in all business processes as it tries to achieve a culture of continuous improvement
Quality
Positive feature of product that has no defects
Quality assurance
A system where the product is checked at each stage of the production process.
Focussed on preventing faults with products during production
Quality circles
Small groups of workers who meet regularly to discuss and resolve problems in production
Quality control
A method that uses quality inspectors as a way of finding any faults
Quality management
Process of a business maintaining a desired level of excellence in a product or service by paying attention to each stage of the production process
Total Quality Management
A right time first approach ensuring that at every stage of production products are checked for quality rather than a sample this approach should eliminate all defects
