Operations management Flashcards
Productivity
Output per time period/ Number of employees
Inventory
Materials work in progress or completed goods waiting to be used or sold
Buffer inventory level
Inventory held to deal with unexpected changes
Lean production
Cutting out waste and inefficiency in the production process
Kaizen
Continuous improvement through the elimination of waste
Just-in-time production
Reducing or eliminating the need to hold inventory of materials and finished products
Job production
A single product is made at a time
Batch production
A quantity of one product is made and then a quantity of another production will be made
Mass/Flow production
Large quantitates of a product made in a continuous process
Fixed costs
Costs that do not vary with output
Variable costs
Costs that vary with output
Total costs
Fixed cost + variable costs
Average cost
Total cost / number of units produced
Economies of scales
Factors that reduce the average cost of a product as the business size increases
Diseconomies of scale
Factors that lead to an increase in average cost of a product as the business increases
Break-even output
The quantity needed to be sold in order for total costs to equal total revenue
Break even chart
A graph that shows how costs and revenue of a product change at different output levels
Contribution
Selling point-variable costs
Quality
A good or service that meets the expectations of a consumer
Quality control
Checking at the end of the production process to see if a good or service before the consumer receives it
Quality assurance
Checking the standard of a product or service through the production process to ensure there are no errors or defects
Total quality management
The continuous improvement of goods and services and processes by focusing on quality at each stage of production.
Infrastructure
The basic physical systems of a business or nation
External economies of scale
Cost benefits resulting in locating in a region with other businesses or organizations operating in the same industry
