Key Words Flashcards Preview

Business Finance - GCSE > Key Words > Flashcards

Flashcards in Key Words Deck (15):
1

Mechanisation

Machinery is used but labour is still required to work the machinery

2

Automation

Machinery is used and a computer controls it

3

Lean production

A Japanese production system which helps ensure that waste is kept to a minimum. One feature is just in time production

4

Just-in-time

Stocks of materials and components are not stored but are used immediately when they arrive at the factory

5

Job production

Method of production which involves producing each product individually eg oscars dress

6

Batch production

Method of production which involves a product going through stages. One stage MUST be completed for the next stage to begin. Products are usually similar but there can be some variations between products as long as the actual process stays the same eg bread

7

Flow production

Involves a continuous movement of items through the production process. When one task has finished the next one much immediately start

8

Division of labour

Organisation of production into a number of specialised ‘simple’ repetitive processes

9

Specialisation

Occurs where workers specialise in carrying of simple production tasks

10

Process product

Method involves a series of automated processes which when applied to a variety of raw materials, results in large quantity of a finished product

11

Added value

Increased worth that a business creates for a product. It is the difference between what it costs a business to produce and the price that it is able to charge for the product/service

12

Total quality management

The process where all workers are responsible for the quality through the process of production

13

Opportunity cost

The cost of missing out of something else

14

Internal finance

Comes from within the business

15

External finance

Comes from outside the business