9350707
| Question | Answer |
| Efficiency | Producing a level of output where average cost is minimised. |
| Productivity | The output per unit of input per time period. |
| Job production | Involves the production of a single product at a time. |
| Batch production | A method that involves completing one operation at a time on all units before performing the next. |
| Flow production | Large-scale production of a standard product, where each operation on a unit is performed continuously on after the other, usually on a production line. |
| Cell production | Involves producing a family of products in a small self-contained unit (a cell) within a factory. |
| Capital intensive | Production methods that make more use of machinery relative to labour. |
| Labour intensive | Production methods that make more use of labour relative to machinery. |
| Capital productivity | The amount of output each unit of capital (e.g. one machine) products. |
| Labour productivity | The amount of output each unit of labour (e.g. one worker) produces. |
| Specialisation | In business, the production of a limited range of goods. |
| Division of labour | Specialisation in specific tasks or skills by an individual. |
| Standardisation | Using uniform resources and activities or producing a uniform product. |
| Lean production | An approach to operations that focuses on the reduction of resource use. (i.e. using few resources to minimise waste) |
| Kaizen | A Japanese term that means continuous improvement. |
| Outsourcing | Giving work to sub-contractors, usually to reduce costs. |
| Production | The transformation of resources into goods or services. |
| Capacity Utilisation | The use that a business makes of its resources. |
| Excess or surplus capacity | When a business has too many resources, such as labour and capital, to produce its desired level of output. |
| Fully capacity | The point where a business cannot produce any more output. |
| Mothballing | Leaving machines, equipment or building space unused, but maintained, so they could be brought back into use if necessary. |
| Over-utilisation | The position where a business is running at full capacity and 'straining' resources. |
| Under-utilisation | The position where a business is producing at less than full capacity. |
| Rationalisation | Reducing the number of resources particularly labour of capital, put into the production process, usually undertaken because a business has excess capacity. |
| Stock control diagram | |
| Buffer stocks | Stocks held as a precaution to cope with unforeseen demand. |
| Kanban | A card or object that acts as a signal to move or provide resources in a factory. |
| Lead time | The time between placing the order and the delivery of goods. |
| Re-order level | The level of current stock when new orders are placed. |
| Re-order quantity | The amount of stock ordered when an order is placed. |
| Stock rotation | The flow of stock into and out of storage. |
| Work-in-progress | Partly finished goods. |
| Just-in-time (JIT) management of stock | A ‘pull’ system of production, so actual orders provide a signal for when a product should be manufactured. |
| Quality | Features of a product that allow it to satisfy customers' needs. It may refer to a certain standard of excellence. |
| Quality control | Making sure that the quality of a product meets specific quality performance criteria. |
| Quality assurance | A method of working for businesses that takes into account customers' wants when standardising quality. It often involves guaranteeing that quality standards are met. |
| Total quality management (TQM) | A managerial approach that focuses on quality and aims to improve the effectiveness, flexibility and competitiveness of the business. |
| Quality chains | When employees form a series of links between customers and suppliers in business, both internally and externally. |
| Quality circles | Groups of workers meeting regularly to solve problems and discuss work issues. |
| Statistical process control | The collection of data about the performance of a particular process in a business. Often used to monitor quality as part of TQM. |
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