Batch production
Producing goods in batches where all products must pass through one stage of production before moving onto the next
Efficiency
Making the best possible use of resources. Maximising outputs from inputs
Flow production
Constantly producing large quantities of identical goods
Inventory
Stock of work in progress, raw materials, and finished products held by a business
Job production
Producing a unique product, one at a time
Just in time (inventory management)
, Inventory management method where supplies arrive exactly when needed in the production process
Kaizen
Constantly introducing small changes in a business in order to improve quality and/or efficiency
Labour productivity
How efficiently workers produce output, calculated by output/no of workers
Lean Production
Production of goods and services with maximum efficiency and minimum waste
Operations management
The process of production of goods and services
Production
The process of converting inputs like (raw materials and components) into finished products
Productivity
Measure of efficiency calculated by dividing outputs by inputs
Average costs
Cost of producing a single unit of output
Break even
Achieving quality production by designing every process to get the product ‘right first time’ and preventing mistakes
Diseconomies of scale
Factors that result in the average price of production increasing as output increases
Economies of scale
Factors that result in the average price of production decreasing as output increases
Fixed costs
Costs that don’t change with output
Margin of safety
Difference between the current level of output and break-even point
Total Costs
Fixed costs plus variable costs
Variable costs
Costs that change with output
Quality assurance
Achieving quality production by designing every process to get the product ‘right first time’ and preventing mistakes
Quality control
Checking quality through inspection at the end of the production process