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