key term definitions 2.4

Question 1

what is the definition of batch production?

Answer 1

a method that involves completing 1 operation at a time on all units before performing the next

Question 2

what is the definition of capital intensive?

Answer 2

production methods that make more use of machinery relative to labour

Question 3

what is the definition of capital productivity?

Answer 3

the amount of output each unit of capital produces

Question 4

what is the definition of cell production?

Answer 4

involves producing a family of products in a small self-contained unit (a cell) in a factory

Question 5

what is the definition of division of labour?

Answer 5

specialisation is specific tasks or skills by an individual

Question 6

what is the definition of downsizing?

Answer 6

the process of reducing capacity usually by laying off staff

Question 7

what is the definition of efficiency?

Answer 7

producing a level of output where average cost is minimised

Question 8

what is the definition of flow production?

Answer 8

large scale production of a standard product where each operation on a unit is performed continuously 1 after the other usually on a production line

Question 9

what is the definition of job production?

Answer 9

a method of production that involves employing all factors to complete 1 unit of output at a time

Question 10

what is the definition of Kaizen?

Answer 10

a Japanese term that means continuous improvement

Question 11

what is the definition of labour intensive?

Answer 11

the production method that makes more use of labour relative to machinery

Question 12

what is the definition of labour productivity?

Answer 12

the amount of output each unit of labour produces

Question 13

what is the definition of lean production?

Answer 13

an approach to operations that focuses on the reduction of resource use

Question 14

what is the definition of outsourcing?

Answer 14

giving work to sub-contractors to reduce costs

Question 15

what is the definition of production?

Answer 15

the transformation of resources into goods or services

Question 16

what is the definition of productivity?

Answer 16

the output per unit of input per time period

Question 17

what is the definition of specialisation?

Answer 17

in business the production of a limited range of goods

Question 18

what is the definition of standardisation?

Answer 18

using uniform resources or activities or producing a uniform product

Question 19

what is the definition of capacity utilisation?

Answer 19

the use that a business makes of its resources

Question 20

what is the definition of excess or surplus activity?

Answer 20

when a business has too many resources such as labour and capital to produce its desired level of output

Question 21

what is the definition of full capacity?

Answer 21

the point where a business cannot produce any more output

Question 22

what is the definition of mothballing?

Answer 22

leaving machines, equipment or building space unused but maintained so they could be brought back into use if necessary

Question 23

what is the definition of over-utilisation?

Answer 23

the position where a business is running at full capacity and ‘straining’ resources

Question 24

what is the definition of rationalisation?

Answer 24

reducing the number of resources particularly labour and capital put into the production process usually undertaken because a business has excess capacity

Question 25

what is the definition of under-utilisation?

Answer 25

the position where a business is producing at less than full capacity

Question 26

what is the definition of buffer stocks?

Answer 26

stocks held as a precaution to cope with unforeseen demand

Question 27

what is the definition of kanban?

Answer 27

a card or an object that acts as a signal to move or provide resources in a factory

Question 28

what is the definition of lead time?

Answer 28

the time between placing the order and the delivery of goods

Question 29

what is the definition of re-order level?

Answer 29

the level of current stock when new orders are places

Question 30

what is the definition of re-order quantity?

Answer 30

the amount of stock ordered when an order is placed

Question 31

what is the definition of stock rotation?

Answer 31

the flow of stock into and out of storage

Question 32

what is the definition of work-in-progress?

Answer 32

partly finished goods

Question 33

what is the definition of quality?

Answer 33

features of a product that allow it to satisfy customers’ needs. it may refer to some standard of excellence

Question 34

what is the definition of quality assurance?

Answer 34

a method of working for businesses that take into account customers’ wants when standardising quality. it often involves guaranteeing that quality standards are met

Question 35

what is the definition of quality chains?

Answer 35

when employees from a series of links between customers and suppliers in business both internally and externally

Question 36

what is the definition of quality circles?

Answer 36

groups of workers meeting regularly to solve problems and discuss work issues

Question 37

what is the definition of quality control?

Answer 37

making sure that the quality of a product meets specified quality performance criteria

Question 38

what is the definition of statistical process control?

Answer 38

the collection of data about the performance of a particular process in a business

Question 39

what is the definition of total quality management?

Answer 39

a managerial approach that focuses on quality and aims to improve the effectiveness, flexibility, and competitiveness of the business