Production of Goods and Services

Vocabulary flashcards covering production types, productivity formulas, inventory control graphs, lean production methods, production systems, and manufacturing technology based on the lecture notes.

Production

The process of converting inputs into outputs in order to satisfy customer demand and maximize profits.

Production Process

The transformational system that converts inputs (Land, Labour, Capital, Enterprise) into outputs (Finished goods, Services, Components for other firms).

Labour-Intensive Production

A production approach where a business relies more on human workers than on machinery to manufacture goods, typically utilized in low-wage economies such as Bangladesh.

Capital-Intensive Production

A production approach where a business relies more on machines than on human labor, typically adopted in developed countries with higher wage levels such as America.

Productivity

A measure of operational efficiency representing the quantity of output generated per unit of input.

Productivity Formulas

Calculations used to evaluate production efficiency: $\text{Productivity} = \frac{\text{Output}}{\text{Input}}$, $\text{Labour Productivity} = \frac{\text{Output}}{\text{Number of Workers}}$, and $\text{Capital Productivity} = \frac{\text{Output}}{\text{Capital Employed}}$.

Inventory Control Graph

A visual diagram used to manage inventory by plotting stock levels over time alongside key operational thresholds.

Maximum Inventory Level

The highest quantity of stock that a business can or intends to hold (e.g., $800\text{ units}$ in the sample graph).

Re-order Quantity

The specific number of inventory units requested each time a new order is placed with a supplier (e.g., $600\text{ units}$ in the sample graph).

Re-order Level

The threshold of stock that triggers a new order to suppliers to replenish stock back to its maximum level (e.g., $400\text{ units}$ in the sample graph).

Lead Time

The duration between placing an order with a supplier and actually receiving the inventory (e.g., $1\text{ week}$ in the sample graph).

Buffer Inventory Level

Also known as minimum inventory level, the reserve stock maintained to protect against unexpected spikes in customer demand or supply delivery delays (e.g., $200\text{ units}$ in the sample graph).

Lean Production

A series of techniques applied by businesses to eliminate waste and maximize operational efficiency.

Kaizen

A Japanese management philosophy meaning "continuous improvement" through waste elimination, where workers hold regular meetings to discuss operational issues and devise solutions.

Just-In-Time Inventory Control (JIT)

An inventory control method that eliminates raw material and finished goods stockholding by scheduling deliveries to arrive precisely when required in the production process.

Cell Production

A organizational production method where the assembly line is divided into independent units (cells), each responsible for making a specific portion of the overall product.

Job Production

A manufacturing method in which items are created individually to match unique customer specifications (e.g., plumbing, custom wedding dresses, hairdressing).

Batch Production

A manufacturing method where a set quantity of identical items is produced before resetting equipment to make a batch of a different product (e.g., bread baking).

Flow Production

Also known as mass production, a high-volume manufacturing system where standardized products are created continuously along an assembly line (e.g., canned food, water bottles).

Automation

A system where production equipment is controlled directly by computers, requiring minimal human supervision (e.g., automated car painting line).

Mechanisation

A system where tasks are executed by machines operated directly by human workers, used primarily for heavy, precise, or dangerous duties (e.g., a printing press).

Computer-Aided Design (CAD)

Computer software utilized to draft, render, and design detailed products quickly and precisely.

Computer-Aided Manufacture (CAM)

Computer systems applied on the factory floor to monitor manufacturing processes and control machines or robotics.

Computer Integrated Manufacturing (CIM)

The complete integration of CAD and CAM systems, wherein software used for product design directly communicates with computer systems managing manufacturing machinery.