Key Words Flashcards
Mechanisation
Machinery is used but labour is still required to work the machinery
Automation
Machinery is used and a computer controls it
Lean production
A Japanese production system which helps ensure that waste is kept to a minimum. One feature is just in time production
Just-in-time
Stocks of materials and components are not stored but are used immediately when they arrive at the factory
Job production
Method of production which involves producing each product individually eg oscars dress
Batch production
Method of production which involves a product going through stages. One stage MUST be completed for the next stage to begin. Products are usually similar but there can be some variations between products as long as the actual process stays the same eg bread
Flow production
Involves a continuous movement of items through the production process. When one task has finished the next one much immediately start
Division of labour
Organisation of production into a number of specialised ‘simple’ repetitive processes
Specialisation
Occurs where workers specialise in carrying of simple production tasks
Process product
Method involves a series of automated processes which when applied to a variety of raw materials, results in large quantity of a finished product
Added value
Increased worth that a business creates for a product. It is the difference between what it costs a business to produce and the price that it is able to charge for the product/service
Total quality management
The process where all workers are responsible for the quality through the process of production
Opportunity cost
The cost of missing out of something else
Internal finance
Comes from within the business
External finance
Comes from outside the business
