2.4 keywords Flashcards
resource management
The aspects of a business which are directly linked to the fulfillment of customer orders.
job production
The production of one off items to meet the specific needs of individual customers.
batch production
Identical items are produced in groups (batches), with each item passing through the production process at the same time.
flow production
A capital intensive production technique in which items flow along the production line in a continuous process.
cell production
A form of flow production whereby the production line is split into a series of self-contained cells.
productivity
Measures the output in a production process per unit of input.
Output Per Unit of Input
A measure of productive efficiency that looks at the use of factor inputs i.e. land, labour, capital in relation to the quantity of finished goods.
competitiveness
The degree to which a firm is successful at selling its products in the face of competition in the market.
productive efficiency
The effective use of resources to minimize inputs and maximize outputs in operations management.
minimum average cost
The lowest achievable cost per unit produced which will be achieved at the optimum level of output.
labour intensive production
When production uses a relatively high proportion of labour e.g. workers in the production process.
capital intensive production
A type of production that uses a relatively high proportion of capital, e.g. machinery in the production of goods/services.
capacity utilisation
A measure of the percentage of potential output being achieved.
under capacity
A firm’s resources are not being used at or close to full capacity e.g. low capacity utilisation.
over capacity
A firm is operating above full capacity e.g. resources being used at an excessive level.
stock
A current asset held by a business to help meet customer demands.
stock control
The mechanism that a company uses to maintain its level of goods or stock held.
stock control diagram
Graphical representations of stock factors.
buffer stock
Stock held by a business to cope with unforeseen circumstances e.g. sudden increase in demand.
just in time
A lean production technique used to minimize stock holdings at each stage of the production process.
lean production
Working practices that focuses of cutting waste whilst improving quality.
quality management
The processes by which a business meets the customers’ expectations in relation to quality.
quality
The ability of product or service to meet customer expectations.
quality control
The checking of a good or service before it is delivered to the customer i.e. at the end of the production process.
quality assurance
The checking of a product or service at each stage of the production process.
quality circles
Informal groups of workers who volunteer to meet on a regular basis to discuss issues relating to the workplace.
total quality management
An attitude towards quality assurance in which each employee is a link in the chain and treats the next link as an external customer.
continuous improvement
A quality management technique that concentrates on small, frequent improvements in every aspect of the production process.
