Productive Efficiency Flashcards
what is productive efficiency?
when operating at the lowest point on its average cost curve to minimise a wastage of resources
when is an economy productively efficient?
If it can produce wastage of resources more of one good only by producing less of another
How do you improve productive efficiency?
Infrastructure, education, new tech, investment, r+d, management sills
what is capacity utilisation?
(actual out put per…/ full capacity) x100
why is full capacity good but bad
Good because FC are lower but there is no room for maintenance or unexpected orders
what intensity do larger firms focus on compared to smaller firms?
Larger- capital
smaller- labour
what is Total Quality Management?
All employees in quality control and take rsposinbility fort it to reinforces motivation and reduce waste
what are the benefits of TQM?
Lower costs, higher profits
what are the drawbacks of TQM?
Implementation costs and takes time
What is lean production?
Minimise waste and cut costs at every stage of production
How is lean production carried out?
Quality control and quality assurance
what is kaizen
Japanese for continuous improvement so everyone is involved and monitors/ improves quality
what is JIT production?
Just in Time- Frequent small deliveries so no need for an expensive reserve stock
what is product development lead time?
Speed of development and delivery with flexibility in capital and labour
what is short production?
Product can be ceased as soon as there is a downturn
