KEY DEFINTIONS/ FORMULAS operations managment Flashcards
added value
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
added value calc
cost of raw materials- selling price
job production
a unique product that is often made by a skilled craftsman specific to a persons requirement e.g., wedding dress
batch production
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
flow production
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
productivity
procuctivity is a measurement of the efficiency with which a business turns production inputs into output. both labour and capital productivity can be measured
labour productivity formula
= output ( per period) / number of employees (per period )
capital productivity
output/ capital employed
capacity utilisation
extent that a company is using its avaliable resources (FOP)efficiently to produce goods or services
capacity utilsation formula
= actual level of output/ maximum possible output X100
lean production
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
quality
quality could be described as thoes features of a product or service that allows it to satsify a customers wants
explain what is meant by stock control
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.
explain just in time
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.
explain computerised stock control
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.
