Section 5 - Production Flashcards

This section examines the way organisations use and manage resources to produce goods and services.

1
Q

Diseconomies of scale

A

Rising average costs when a firm becomes too big.

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2
Q

Economies of scale

A

Falling average costs due to expansion.

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3
Q

External economies of scale

A

The cost benefits that all firms in the industry can enjoy when the industry expands.

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4
Q

Internal economies of scale

A

The cost benefits that an individual firm can enjoy when it expands.

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5
Q

Scale

A

The size of a business.

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6
Q

Batch production

A

A method which involves completing one operation at a time on all units before performing the next.

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7
Q

Flow production

A

Large-scale production of a standard product, where each operation on a unit is performed continuously one after the other, usually on a production line.

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8
Q

Job production

A

A method of production which involves employing all factors to complete one unit of output at a time.

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9
Q

Process production

A

A form of flow production where materials pass through a plant where a series of processes are carried out in order to change the product.

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10
Q

Downsizing

A

The process of reducing capacity, usually by laying off staff.

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11
Q

Outsourcing

A

The contracting out of work to other businesses that might otherwise have been performed within the organisation.

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12
Q

Productivity

A

The amount of output produced in relation to the resources used.

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13
Q

Work study

A

A process which identifies the best possible way to carry out a task by looking closely at the way a job is done.

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14
Q

Cell production

A

Involves producing a ‘family of products’ in a small self-contained unit (a cell) within a factory.

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15
Q

Just-in-time manufacturing

A

A production technique which is highly responsive to customer orders and uses very little stock holding.

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16
Q

Kaizen

A

A Japanese term which means continuous improvement.

17
Q

Lead time

A

The time between receiving an order and making a delivery.

18
Q

Lean production

A

An approach to production aimed at reducing the quantity of resources used.

19
Q

Multi-skilling

A

Where workers are trained in more than one skill which enables them to do a range of jobs.

20
Q

Computer aided design (CAD)

A

The use of computers to design products.

21
Q

Computer aided manufacturing (CAM)

A

Where computers link and control the design and production of goods in manufacturing.

22
Q

Computer integrated manufacturing (CIM)

A

The use of computers to control the entire production process.

23
Q

Computer numerically controlled machines (CNC’s)

A

Machines which carry out the instructions fed by computers.

24
Q

E-commerce

A

The trading of goods and services electronically.

25
Q

E-tailing

A

Ordering goods online and taking delivery at home.

26
Q

Quality

A

Features of a product that allow it to satisfy customers’ needs.

27
Q

Quality control

A

Making sure that the quality of a product meets specified quality standards.

28
Q

Quality assurance

A

A method of working for businesses that takes into account customers’ wants when standardising quality. It often involves guaranteeing that quality standards are met.

29
Q

Total quality management (TQM)

A

A managerial approach which focuses on quality and aims to improve the effectiveness, flexibility and competitiveness of the business.