Key Terms - Production, Productivity And Efficiency Flashcards
Batch production
The manufacture of products in groups or batches to improve efficiency. It involves completing one operation at a time on all units before moving on to the next
Capital intensive
Production methods that rely more capital resources/machinery more than labour resources/employees
Labour intensive
Production methods that rely more on labour resources/workers more than capital resources/machinery
Capital productivity
The amount of output that each unit of capital (e.g. one machine) produces
Cell production
Involves producing a family of products in a small self-contained unit (a cell) within a factory
Division of labour
Splitting up production into different tasks that are done by specialised individuals/employees
Downsizing
The process of reducing capacity usually by laying off staff
Efficiency
Producing a level of output where average cost is minimised
Flow production
Large-scale production of a standard product, where each operation on the unit is performed continuously one after the other, usually in a production line
Job production
Products that are designed and manufactured to individual specifications. All factors are employed to one task during production
Kaizen
A Japanese term that means continuous improvement
Labour productivity
The amount if output that each unit of labour (e.g. worker) produces
Lean production
Lean production is an approach to management that focuses on cutting out waste, whilst ensuring quality
Outsourcing
Giving work to sub-contractors to reduce costs
Production
The transformation of resources into goods/services
