2.3.4 Resource management Key Term Friday Quiz

Define the term 'production'. (2)

Answer explanation

Production refers to the process of creating goods and services by combining various resources, such as labour, materials, and technology, to meet consumer demand.

The process of turning raw materials into a final good/service.

Define the term 'productivity'. (2)

Answer explanation

Productivity refers to the efficiency of production, measured as the output produced per unit of input, such as labor or capital. It indicates how effectively resources are utilised to generate goods or services. Essentially, t is the direct measure of output of a person or a machine over a period of time.

Define the term 'quality'. (2)

Answer explanation

Quality refers to the standard of something as measured against other things of a similar kind; it encompasses attributes such as durability, reliability, and performance that determine its overall excellence that makes it stand out against competitors.

Define the term 'inventory'. (2)

Answer explanation

Inventory refers to the goods and materials a business holds for the purpose of resale or production. It includes raw materials, work-in-progress, and finished goods, essential for managing supply and meeting customer demand.

Define the term 'efficiency'. (2)

Answer explanation

Efficiency refers to the ability to achieve maximum output with minimum input or resources. It measures how well resources are utilised to produce desired results with minimal average costs.

Define the term 'capacity utilisation'. (2)

Answer explanation

Capacity utilisation refers to the percentage of potential output that is actually being produced by a business. It indicates how efficiently resources are being used in production.

Define the term 'batch production'.

Answer explanation

Batch production refers to the manufacturing process where items are produced in groups or batches, allowing for efficient use of resources and flexibility in production. This method contrasts with continuous production (flow production) or job production (single, unique product is created specifically for an individual customer).