3.1 & 3.2

is the process of changing inputs such as labour into goods and services that can be sold. This can include services e.g. cleaning company can provide materials, staff, vans (including fuel) in order to deliver the service

refers to all the activities in managing the transformation of inputs into outputs

Products are supplied to meet the exact requirements of a customer e.g. tailor or garden designer

An item moves from one stage of production to another continuously

An approach to production which aims to minimise waste

Production exceeding demand & Wasted time – waiting for parts/stock items & Faulty goods needing to be re-made or repaired – costing money

Holding as little stock as possible. Items ordered arrive just in time to be used

Continuous improvement. Achieves change in production in a series of small steps

Holding stock just in case there is a delay from suppliers or a sudden unexpected increase in demand

The selecting of suppliers - including the terms of payment and contract