Topic 2.3 Flashcards
Operations
Section of the business that provides the customer with the goods or services they want at the right time to the right quality standards
Economies of scale
When the average costs of production falls as the price of the product increases
Job production
One - off, tailor made production for bespoke orders
Batch production
Producing a limited number of the same items, usually anywhere from 10 to a million
Flow production
The continuous movement of items throughout the production process
Automation
Producing by machine
JIT (Just in Time)
Japanese system of stock control in which its an attempt to operate with zero buffer stock instead relying upon small deliveries to come exactly when needed rather than occasional large deliveries
Outsourcing
Involves using another firm to carry out certain operations on behalf of the business such as producing goods or delivering services
Lead time
How long it takes from ordering stock for it to arrive
Procurement
Process of acquiring the supplies needed to run operations effectively
Logistics
Organisation and transportation of goods and services
