Average costs,
Cost of producing a single unit of output
Batch production
Producing goods in batches where all products must pass through one stage of production before moving onto the next
Buffer Inventory
supply of inputs held as a reserve in case of unexpected changes in demand or supply.
Capital Intensive
High quantity of capital input compared to labour input
Effectiveness
achieving business objectives by using inputs productively to meet customers’ needs.
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),
is an inventory management method where supplies arrive exactly when needed in the production process
Labour intensive
High quantity of labour input compared to capital input
Lead Time
Time taken between placing an order and receving delivery.
Lean Production,
Production of goods and servies with maximum efficiency and minimum waste
Process Innovation
is the implementation of a new or significantly improved production or delivery method. This includes significant changes in techniques, equipment and/or software
Production,
The process of converting inputs like (raw materials and components) into finished products
Productivity,
Measure of efficiency by caluclated by dividing output by input
Reorder Level
Inventory level at which a company would place a new order
Total Costs,
Fixed costs plus variable costs
Transformation Process
activity or group of activities that takes one or more inputs, transforms and adds value to them, and provides outputs for customers or clients.
Value Added
Value-added is the difference between the price of product or service and the cost of producing it.
Sustainability
production systems that prevent waste by using the minimum of non-renewable resources so that levels of resources will remain available for the long term.
Mass Customisation
market goods and services that are modified to satisfy a specific customer's needs. Mass customization is a marketing and manufacturing technique that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.
Just in Case (Inventory Management)
Just in case (JIC) is an inventory strategy where companies keep large inventories on hand. This type of inventory management strategy aims to minimize the probability that a product will sell out of stock.
Supply chain management
Supply chain management is the management of the flow of goods and services and includes all processes that transform raw materials into final products.
Capacity Utilisation
"Capacity utilization rate measures the percentage of an organization's potential output that is actually being realized. The formula for finding the rate is: (Actual Output / Potential Output ) x 100 = Capacity Utilization Rate"
Outsourcing
Making an agreement with another business to undertake a part of the production process rather than doing it within the business using the firm’s own employees.