Production Flashcards
What is production?
The process of transforming inputs and resources into an output to meet customer demand.
What are the three production methods?
Job: every product is completed before the next starts
Batch: each task is completed on a mass scale before next task
Flow: continuous flow of products across production stages
What is the formula for labour productivity?
Output / employee number
What is the formula for capital productivity?
Output / capital employed
What is capacity utilisation?
The amount the firm is using in comparison to what could be used.
What is the formula for capacity utilisation?
(Actual / available x100)
What may cause under-utilisation?
New competition
Seasonal business
Fall in demand
Unsuccessful marketing
What is subcontracting?
Asking another organisation to make a product for you
How may stock control encourage maximum capacity utilisation?
Holding high stock enables businesses to release products and maximise capacity when demand increases.
How are loyalty cards beneficial?
Help businesses understand customer interests and buying habits, helps with demographics.
What is CAD?
Computer aided design
What is CAM?
Computer aided manufacturing
What is the purpose of lean production?
To minimise waste
Why cut out waste?
Minimise unnecessary spending
More physical capacity to utilise
Better management of roles and tasks
What are the stages in a waste hierarchy?
Disposal – Recycling – Minimalization – Avoidance
What is time based production?
Recognises importance of time and trusts employees to waste no time.
What is cell production?
Workers act in a team in one area to complete a singular production process.
What is JIT production?
Ordering of stock as demand comes in
What is Kaizen when producing?
Constantly introducing changes to improve efficiency and production.
What are the 2 methods of ensuring quality?
Quality control: System checks at end of production line
Quality assurance: system checks throughout different production stages
What does research and development consist of?
Carrying out market research for discovery or new ideas or ways to innovate.
What is economies of scale?
The benefits a business gains as it grows in size.
What are the 5 internal economies of scale?
1: Purchasing
2: Marketing
3: Technical
4: Managerial
5: Financial
What are the 3 external economies of scale?
1: Financial
2: Educational
3: Supplier
What is diseconomies of scale?
The disadvantages a business experiences as it grows in size.
