KEY DEFINTIONS/ FORMULAS operations managment Flashcards

1
Q

added value

A

added value is the increase in worth/ benefit a product/ service gains during production process. difference between cost of purchasing raw materials and selling price

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2
Q

added value calc

A

cost of raw materials- selling price

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3
Q

job production

A

a unique product that is often made by a skilled craftsman specific to a persons requirement e.g., wedding dress

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4
Q

batch production

A

the manufacture of a limited number of identical products. within each stage of the production process, work will be completed for the whole batch before the next stage is begun

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5
Q

flow production

A

production is organised so that different operations can be carried out one after another ina continious sequence as production moves continiously from one stage of the process to the next

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6
Q

productivity

A

procuctivity is a measurement of the efficiency with which a business turns production inputs into output. both labour and capital productivity can be measured

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7
Q

labour productivity formula

A

= output ( per period) / number of employees (per period )

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8
Q

capital productivity

A

output/ capital employed

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9
Q

capacity utilisation

A

extent that a company is using its avaliable resources (FOP)efficiently to produce goods or services

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10
Q

capacity utilsation formula

A

= actual level of output/ maximum possible output X100

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11
Q

lean production

A

lean production aims to remove all waste from the production process and as a results increase productivity and reduce costs while ensuring quality
any process that does not add value is waste

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12
Q

quality

A

quality could be described as thoes features of a product or service that allows it to satsify a customers wants

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13
Q

explain what is meant by stock control

A

refers to the process of managing and regulating the levels of stock within a business or organization. The primary goal of stock control is to ensure that the right amount of stock is available at the right time to meet customer demand while minimizing costs associated with holding excess inventory.

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14
Q

explain just in time

A

Just-in-Time (JIT) production is a management philosophy and manufacturing strategy aimed at minimizing waste and maximizing efficiency in the production process. The core idea behind JIT is to produce goods only as they are needed, thereby reducing inventory holding costs and improving overall productivity.

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15
Q

explain computerised stock control

A

refers to the use of computer systems and software to manage and track stock levels, orders, and related inventory operations within a business or organization.

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15
Q

innovation

A

the commerical exploitation of an invention

15
Q

research and devlopment

A

research and devlopment is essenatial for businesses to complete in a dynamic market place. it involves the identification of new ideas and turning them into products, servies and processes.
a business who invests in R &D considered to be innovative and always looking to bring new ideas and products to the market

16
Q

economies of scale

A

the reduction in average costs of production that occur as a business increases its scale of production