Flipped: Operations Management Flashcards
(22 cards)
output measured against the inputs used to create it
productivity
the inventory held to deal with uncertainty in customer demand and deliveries of supplies
buffer inventory
technique used to cut down on waste and increase efficiency
lean production
“continuous improvement”, through elimination of waste
kaizen
production method that involves reducing/virtually eliminating the need to hold inventories of raw materials/unsold inventories of the finished product
Just-in-time
single product is made at a time
job production
quantity of one product is made, then a quantity of another item will be produced
batch production
large quantities of a product are produced in a continuous process
flow/mass production
cost that do not vary in the short run with the number of items sold/produced. have tombs paid whether the business is making any sales or not.
fixed/overhead costs
costs which vary directly with the number of items sold/produced
variable costs
fixed and variable costs combined
total costs
the total cost of production divided by total output
average cost per unit
factors that lead to a reduction in average costs as a business increases in size
economies of scale
factors that lead to an increase in average costs as a business grows beyond a certain size
diseconomies of scale
the quantity that must be produced/sold for total revenue to equal total costs
break-even point
graph that shows how cost and revenues of a business changes with sales. show the level of sales the business must make to break-even
break-even chart
the amount by which sales exceed the break-even point
margin of safety
its selling price minus its variable costs
contribution of a product
means to produce a good/service which meets customer expectations
quality
checking for quality at the end of the production process, uses quality inspectors as a way of finding any faults
quality control
checking for quality standards throughout the production process by employees
quality assurance
continuous improvement of products and processes by focusing on quality at each and every stage of production
total quality management
