Unit 10 - Commercial Production Flashcards

1
Q

Just in Time (JIT)

A

when a company does not allocate space to the storage of components or completed items

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2
Q

Just in Case (JIC)

A

Produces a small stock of components or products and stores them as inventory.

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3
Q

Lean Production

A

Considers product and process design as an ongoing activity and not a one-off task.

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4
Q

Principles of Lean production

A

elimination of waste, minimizing inventory, maxing production flow, Kaizen, respect/empowering workers, meeting customer requirements, designing for rapid changeover, reliable partnership with suppliers, no errors

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5
Q

Value Stream Mapping

A

Used to analyse current and future processes for the production of a product through to delivery to the consumer.

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6
Q

Workflow analysis

A

The review of processes in a workflow (e.g. production line, identifying potential improvements)

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7
Q

Lead Time

A

refers to the time between the date of purchase and the date of delivery.

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8
Q

5 S’s

A

Sorting, Stabilizing, Shining, Standardizing, sustaining practice

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9
Q

7 Wastes

A

overproduction, waiting, transporting, inappropriate processing, unnecessary inventory, excess motion, defects

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10
Q

CIM

A

Uses computers to integrate the processing of production, business and manufacturing in order to create more efficient production lines.

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11
Q

Elements of CIM

A

CAD, Planning, Purchasing, Cost accounting, Inventory control, Distribution

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12
Q

Quality Control

A

Continuous monitoring ensures that the machines perform to the pre-determined standard/quality.

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13
Q

Quality Assurance

A

The regulation of the quality of raw materials, assemblies, products and components, services related to production, and management and inspection processes.

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14
Q

Statistical process Control

A

Uses statistical methods to ensure that a process operates at its most efficient.

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15
Q

Cost effectiveness

A

Most efficient way of designing and producing a product from the manufacturer’s point of view.

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16
Q

Value for Money

A

The relationship between what something, for example a product, is worth and the cash amount spent on it

17
Q

Costing VS Pricing

A

A production, research, retail, and accounting, a cost is the value of money that has been used up to produce something.

18
Q

Fixed Costs

A

Costs do not change with the level of production.

19
Q

Variable Costs

A

Costs that change in proportion to the goods or service that a business produces (reliant on output)

20
Q

Cost analysis

A

tool used to determine the potential risks and gains of producing a product.

21
Q

Break-Even

A

point of balance between profit and loss. It represents the number of sales of a product required to cover the total costs (fixed + variable)

22
Q

Price-minus

A

Determine a maximum price that consumers are willing to pay for a product or service - The manufacture designs and produces within these constraints.

23
Q

Retail Price

A

Recommended retail price (RRP) suggested by the manufacturer (MSRP) that the retailer should sell the product for.

24
Q

Wholesale price

A

The cost of a product sold by the wholesaler.

25
Q

Typical manufacturing price

A

It is the total costs (variable and fixed) to manufacture the product. Divide the total manufacturing/product costs by the total products/items produced to get the average cost/price per unit.

26
Q

Target Cost

A

It is desired final cost of a product is determined before manufacturing begins.

27
Q

Return on Investment

A

Receiving a profit (return) on money invested into the product or service.

28
Q

Unit Costs

A

The costs a company incurs to produce store and sell one product (item).

29
Q

Sales volume

A

It is the amount of products sold in a specified time period during regular working operations of a company.

30
Q

Financial Return

A

It is the profits generated from a sale or investment into a company.