Theme 2.4 Flashcards
Job production
Production of one off items to meet the specific needs of each individual customer
Batch production
Identical items are produced in small groups at the same time
Flow production
A capital intensive production technique where items flow along the production line in a continuous process
Cell production
A form of flow production when the production line is split into a series of self contained cells
Productivity
A measure of output per unit of input in a given period of time
Efficiency
Maximising the output achieved from given inputs including machinery in a given period of time
Capital intensive
Production that uses a relatively high proportion of capital such as machinery
Labour intensive
Production that uses a relatively high proportion of labour
Capacity utilisation
A measure of the percentage of potential output that is actually being achieved
Under utilisation
A firms resources are not being used close to full capacity
Over utilisation
The firm is operating above full capacity
Stock
A current assets held by a business to meet the demand of customers
Stock control
The mechanism that a company uses to maintain this level of stock
Stock control diagrams
a graphical representation of the flow of stock represented within a business
Lead time
The time it takes between placing an order and receiving delivery
Reorder level
The level of stock which triggers an order
Buffer stock
Stock held by a business to cope with unforeseen circumstance
Lean production
Working practices that focus on cutting waste whilst maintaining or improving quality
Implications of poor stock control
Damaged reputation for failing to meet customer needs
Waste of resources if excess stock becomes out of date
Quality
Ability of a good or service to meet customers expectations
Quality management
Processes by which a business meets the customers expectation and reality to quality
Quality control
The checking of a good or service before it is delivered to a customer
Quality assurance
The checking of a product or service at each stage of production
Quality circles
Inferno groups of workers who volunteer to meet on a regular basis to discuss issues relating to the workplace
Total quality management
Passing the product on only if it is correct
Get it right first time
Kaizen
Continuous improvements in the production process
