2.4 keywords

Question 1

resource management

Answer 1

The aspects of a business which are directly linked to the fulfillment of customer orders.

Question 2

job production

Answer 2

The production of one off items to meet the specific needs of individual customers.

Question 3

batch production

Answer 3

Identical items are produced in groups (batches), with each item passing through the production process at the same time.

Question 4

flow production

Answer 4

A capital intensive production technique in which items flow along the production line in a continuous process.

Question 5

cell production

Answer 5

A form of flow production whereby the production line is split into a series of self-contained cells.

Question 6

productivity

Answer 6

Measures the output in a production process per unit of input.

Question 7

Output Per Unit of Input

Answer 7

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.

Question 8

competitiveness

Answer 8

The degree to which a firm is successful at selling its products in the face of competition in the market.

Question 9

productive efficiency

Answer 9

The effective use of resources to minimize inputs and maximize outputs in operations management.

Question 10

minimum average cost

Answer 10

The lowest achievable cost per unit produced which will be achieved at the optimum level of output.

Question 11

labour intensive production

Answer 11

When production uses a relatively high proportion of labour e.g. workers in the production process.

Question 12

capital intensive production

Answer 12

A type of production that uses a relatively high proportion of capital, e.g. machinery in the production of goods/services.

Question 13

capacity utilisation

Answer 13

A measure of the percentage of potential output being achieved.

Question 14

under capacity

Answer 14

A firm’s resources are not being used at or close to full capacity e.g. low capacity utilisation.

Question 15

over capacity

Answer 15

A firm is operating above full capacity e.g. resources being used at an excessive level.

Question 16

stock

Answer 16

A current asset held by a business to help meet customer demands.

Question 17

stock control

Answer 17

The mechanism that a company uses to maintain its level of goods or stock held.

Question 18

stock control diagram

Answer 18

Graphical representations of stock factors.

Question 19

buffer stock

Answer 19

Stock held by a business to cope with unforeseen circumstances e.g. sudden increase in demand.

Question 20

just in time

Answer 20

A lean production technique used to minimize stock holdings at each stage of the production process.

Question 21

lean production

Answer 21

Working practices that focuses of cutting waste whilst improving quality.

Question 22

quality management

Answer 22

The processes by which a business meets the customers’ expectations in relation to quality.

Question 23

quality

Answer 23

The ability of product or service to meet customer expectations.

Question 24

quality control

Answer 24

The checking of a good or service before it is delivered to the customer i.e. at the end of the production process.

Question 25

quality assurance

Answer 25

The checking of a product or service at each stage of the production process.

Question 26

quality circles

Answer 26

Informal groups of workers who volunteer to meet on a regular basis to discuss issues relating to the workplace.

Question 27

total quality management

Answer 27

An attitude towards quality assurance in which each employee is a link in the chain and treats the next link as an external customer.

Question 28

continuous improvement

Answer 28

A quality management technique that concentrates on small, frequent improvements in every aspect of the production process.