Operations management

Question 1

Productivity

Answer 1

Output per time period/ Number of employees

Question 2

Inventory

Answer 2

Materials work in progress or completed goods waiting to be used or sold

Question 3

Buffer inventory level

Answer 3

Inventory held to deal with unexpected changes

Question 4

Lean production

Answer 4

Cutting out waste and inefficiency in the production process

Question 5

Kaizen

Answer 5

Continuous improvement through the elimination of waste

Question 6

Just-in-time production

Answer 6

Reducing or eliminating the need to hold inventory of materials and finished products

Question 7

Job production

Answer 7

A single product is made at a time

Question 8

Batch production

Answer 8

A quantity of one product is made and then a quantity of another production will be made

Question 9

Mass/Flow production

Answer 9

Large quantitates of a product made in a continuous process

Question 10

Fixed costs

Answer 10

Costs that do not vary with output

Question 11

Variable costs

Answer 11

Costs that vary with output

Question 12

Total costs

Answer 12

Fixed cost + variable costs

Question 13

Average cost

Answer 13

Total cost / number of units produced

Question 14

Economies of scales

Answer 14

Factors that reduce the average cost of a product as the business size increases

Question 15

Diseconomies of scale

Answer 15

Factors that lead to an increase in average cost of a product as the business increases

Question 16

Break-even output

Answer 16

The quantity needed to be sold in order for total costs to equal total revenue

Question 17

Break even chart

Answer 17

A graph that shows how costs and revenue of a product change at different output levels

Question 18

Contribution

Answer 18

Selling point-variable costs

Question 19

Quality

Answer 19

A good or service that meets the expectations of a consumer

Question 20

Quality control

Answer 20

Checking at the end of the production process to see if a good or service before the consumer receives it

Question 21

Quality assurance

Answer 21

Checking the standard of a product or service through the production process to ensure there are no errors or defects

Question 22

Total quality management

Answer 22

The continuous improvement of goods and services and processes by focusing on quality at each stage of production.

Question 23

Infrastructure

Answer 23

The basic physical systems of a business or nation

Question 24

External economies of scale

Answer 24

Cost benefits resulting in locating in a region with other businesses or organizations operating in the same industry