business t2 Flashcards
definition chapter 1
productivity
output measured against the inputs used to create it
buffer
inventory level is the inventory held to deal with uncertainty in customer demands and deliveries of supplies
lean production
term for those techniques used by businesses to cut down on waste and therefore increase efficiency, for example by reducing the time it takes for a product to be developed and become available for sale
kaizen
A Japanese term meaning continuous improvement through the elimination of waste
just in time
production method that involves reducing or virtually eliminating the need to hold inventories of raw materials or unsold inventories of the finished product
job production
where a single product is made at a time
batch production
where a quantity of one product is made, and then a quantity of another item will be produced
batch production
where quantities of a product are produced in a continuous process. it is sometimes referred to as mass production
flow production
where large quantities of a product are produced in a continuous process. it is sometimes referred to as mass production
fixed cost
Costs which do not vary in the short run with the number of items sold or produced. they have to be paid whether the business is making any sales or not. they are also known as overhead costs
variable costs
costs which vary directly with the number of items sold or produced
economies of scale
are the factors that lead to a reduction in average costs as business grows beyond a certain size
total costs
fixed and variable costs combined
average cost per unit (unit cost)
the total cost of production divided by the total output
diseconomies of scale
factors that lead to a reduction in average costs as a business increases in size
the break-even point
level of sales at which total costs =. total revenue
the revenue
the income during a period of time from the sale of goods or services
quality
produce a good or service which meets customer expectation
quality control
checking the quality at the end of the production process; it uses quality inspectors to find any faults
quality assurance
checking for quality standards by employees throughout the production process
