Unit 4 Flashcards
What are the 7 operational Objectives?
Costs, Quality, Speed, Flexibility, Dependability, Environment, Value
What is labour productivity?
The output of an individual/collection of workers in a given time period.
What is the labour productivity formula?
Output per period / No. of workers
What is the unit cost formula?
Total cost to produce / Total output in period
What 4 things influence unit cost?
EOS, labour productivity, shipping costs, raw material prices
What is capacity?
The maximum output a business can achieve with their given factors of production.
What are 3 methods to increase capacity?
Work more hours, buy new factories, buy new machinery
What is the capacity utilisation formula?
(Actual output / Maximum output) x 100
What is mass customisation?
A production process involving mass production techniques where output is tailored to the needs of the customer.
What are the advantages of mass customisation?
Low unit cost, higher added value, premium pricing, lower inventory
What are inventories?
Raw materials, work-in-progress and finished goods a business stores.
What is the lead time?
The time between reordering stock and receiving stock.
What is the buffer stock?
Stock held as a contingency in case of unexpected circumstances.
