Section 4 -- Operations management Flashcards
productions of goods and services, costs,scale of production and break even analysis, achieving quality production, location decisions
define ‘productivity’
output measured against the inputs used to create it
define ‘buffer inventory level’
inventory held to deal with uncertainty in customer demands and deliveries of supplies
define ‘lean production’
techniques used by businesses to cut down on waste and therefore increase efficiency
define ‘kaizen’
Japanese term meaning ‘continuous improvement’ through the elimination of waste
define ‘just-in-time (JIT)’
production method that involves reducing or virtually eliminating the need to hold inventories of raw materials or unsold inventories of the finish product
define ‘job production’
single product is made at a time
define ‘batch production’
where a quantity of one product is made, then a quantity of another item will be produced
define ‘flow production’
large quantities of product are produced in a continuous process (mass production)
define ‘fixed costs’
costs which do not vary with the number of items sold or produced in the long run
define ‘variable costs’
costs which vary directly with the number of items sold and produced
define ‘total costs’
fixed and variable costs combined
define ‘average cost per unit’
cost of production divided by total output
define ‘economies of scale’
factors that lead to reduction in average costs as a business increases in size
define ‘diseconomies of scale’
factors that lead to an increase in average costs as a business grows beyond a certain points
define ‘break-even level of output’
quantity that must be produced/sold for total revenue to equal total costs
