Chapter 33-41 Operations Flashcards
Job production
Single, unique items are made one at a time.
Batch production
Limited number of identical products are made in groups
Flow or mass production
A continuous process where large volumes of identical products flow from one stage of
production to the next on a production line.
Labour productivity
A measurement of the output per worker that shows how efficient workers in a business are at turning production inputs into outputs.
Rationalisation
Concentrating on core products and disposing of those products/services/assets/employees that are not seen as profitable.
Computer modelling
Computers which are programmed to predict future outcomes by testing a range of ‘whatif’ scenarios in order to improve product safety, performance & efficiency
Computer aided design (CAD)
An interactive computer system which is capable of generating, storing and using
computer graphics to assist design engineers to create images of new products.
Computer aided manufacturing
Using programmed computers and robots to produce goods
Lean production
The reduction and removal of waste from the production process, which will result in
increased productivity and reduced costs
JIT
Parts, raw materials and components are received and products are made only when
there is demand for the parts and demand for the products
Kaizen
Continuous improvement. Be continually making small incremental steps in the
improvement of quality, design and waste reduction.
Cell production
Groups of workers who are multi-skilled and can be self-managing, where each group is
responsible for completing a task, and members are expected to play a role in improving quality and flexibility in the production process
Time based management
Process that focus on time as a key business resource, including concepts such as just-intime, Computer Aided Design, Computer Aided Manufacture, Critical Path Analysis and Simultaneous Engineering
Quality assurance
Checking quality throughout the production process
Quality control
Checking quality at the end of the production line through inspections and sampling.
Benchmarking
Setting standards of quality and output which are based on the best that competitors are achieving
Total quality management
TQM – A total process of creating quality through continuous improvement in all stages of production
Quality chains
Where the next person in the production process is treated as a customer and customer satisfaction is the objective
Economies of scale
The reduction in average costs of production that occur as output increases
Internal economies of scale
Reductions in the average cost per unit of output as a result of increasing internal
efficiencies within a business.
Purchasing economies
As output increases, so can the size of orders for raw materials, which may result in bulk
discounts being given which therefore reduces the average cost of production.
Technical economies
As a business grows it can afford to purchase the latest equipment which will result in
increased efficiency and productivity, reducing average costs of production.
Financial economies (internal)
As a business grows it will have access to a wider range of finance, and they have more
collateral to offer lenders as security – reducing the risk. As a result they can often
negotiate more favourable rates of interest and thus lower the average cost of borrowing.
Managerial economies
As a business grows it can employ specialists who can increase efficiency of production,
marketing or purchasing thereby reducing the average costs of production.
