2.4 key terms Flashcards
Define lean production
A method of production that focuses on cutting waste, whilst ensuring quality
Define capital intensity
Business processes that require large amounts of investment: machinery, plant, property etc.
Define labour intensity
Where a business needs a large workforce in relation to output
Define mothballing
Taking certain assets out of practice that should still function properly but are no longer needed
Define Job Production
Production of single unique units usually done by a highly skilled employee for specialised products.
Define batch production
A standardised production process where products can be made in relatively large quantities but the system can be modified to adjust the specification.
Define flow production
A highly automated and standardised production process which is continuous to achieve economies of scale
Define cell production
A production process where teams of workers work together to produce an entire product or part of a product
Define efficiency
Making the best use of all the resources of a business
Define capacity utilisation
The use a business makes of its resources
Define Kaizen
A Japanese philosophy of continuous improvement of working practices
Define buffer stock
Stock that is held to help a business cope with unforeseen events
Define Just In Time (JIT)
A manufacturing method of keeping stock levels to a minimum and capital being freed up. This relies on raw materials being delivered right as they are needed on the production line.
Define inventory
The supplies and stock held by a business. This can include: raw materials, work-in-progress and finished goods.
Define quality
The extent to which a product or operation meets its customers requirements.