The output
of a business is the total amount produced in a given time period.
Inventory
refers to the stocks held in a business, such as materials and semi-finished goods.
Operations management
oversees the planning, coordination and control of the transformation process, turning resources (inputs) into outputs.
Productivity
measures the output per hour, per person or per machine.
Sustainable
activities are those that meet the needs of the business or of society without compromising on the ability to meet future needs.
Capital-intensive
production means there is a high proportion of capital (for example, machinery) used relative to other factors of production.
Labour-intensive
production means there is a relatively high proportion of labour (employees) used relative to other factors of production.
The supply chain
refers to all the different stages involved in making, distributing and selling a good or service, beginning with the material through to the production of parts, through to the distribution and sale of the product.
Supply chain management
involves managing the flow of goods and services, and includes the different processes that transform raw materials into final products.
Lean production
is an approach that continually seeks to reduce any form of wastage in the production process.
Capacity
measures the maximum amount of output a firm can produce at a given moment with its existing resources.
Factors of production
are inputs into the transformational process of business, such as land, labour, capital and enterprise.
Capacity utilisation
measures the existing output relative to the maximum possible output.
Capacity under-utilisation
occurs when a business is producing less than the maximum amount it can produce, given its existing resources.
Rationalisation
occurs when a business reduces the scale of its operations and reduces its capacity level.
Subcontracting
occurs when one business employs another business to undertake some of the work.
Outsourcing
occurs when the business uses other producers to undertake some of its operations.