Production key terms Flashcards
Batch production
A method that involves completing one operation at a time on all units before performing the next
Capital intensive
Production methods that make more use of machinery relative to labour
Capital productivity
The amount of output each unit of capital (e.g. one machine) produces
Cell production
Involves producing a family of products in a small self-contained unit (cell) within a factory
Division of labour
Specialisation in specific tasks or skills by an individual
Downsizing
The process of reducing capacity. Usually by laying off staff
Efficiency
Producing the 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 on a production line
Job production
A method of production that involves employing all factors to complete one unit of output at a time
Kaizen
A Japanese term that means continuous improvement
Labour intensive
Production methods that make more use of labour relative to machinery
Labour productivity
The amount of output each unit of labour (e.g one worker) produces
Lean production
An approach to operations that focuses on the reduction of resource use
Outsourcing
Giving work to subcontractors to reduce costs
Production
The transformation of resources into goods or services
