Production and production methods

A process through which a business seeks to ensure that product quality is maintained or improved.

• Quality Control

• Lean Control

• Stock Control

• Lead time

The process of maintaining the appropriate quantity of stock, so a business can meet customer demand without delay

• Quality Control

• Lean Control

• Stock Control

• Lead time

A method of production that focuses on the elimination of waste

• Quality Control

• Lean Control

• Stock Control

• Lead time

The margin of time between the date when is stock is obtained and the date when it is sold on.

• Quality Control

• Lean Control

• Stock Control

• Lead time

Type of production where each product is produced from start to finish ( often by the same person or group of people) e.g. haircut, custom made clothes, ships, handmade furniture.

• Job production

• Batch production

• Flow production

Type of production where similar products are made as specified groups or amounts, within a time frame e.g. baked products like bread, clothing, flat pack furniture.

• Job production

• Batch production

• Flow production

Type of production where there is a continuous movement of items through the production process – usually on a production/assembly line e.g. packet of biscuits, cars, soft drink.

• Job production

• Batch production

• Flow production

As a firm becomes larger (increases its level of output) the average costs begin to fall

• Economies of scale

• Diseconomies of scale

• Productivity

• Production

When the average cost of production starts to increase as the size of the business increases.

• Economies of scale

• Diseconomies of scale

• Productivity

• Production

Number of outputs (goods & services) that can possibly be produced by a given number of inputs (resources)

• Economies of scale

• Productive Capacity

• Productivity

• Production