UNIT 7

Production

The process of converting inputs such as land, labour and capital into saleable goods.

Inventories

The stock of raw materials, work-in-progress and finished goods held by a business.

Lean production

The production of goods and services with minimal waste of resources.

Just-in-time (JIT)

A production method that reduces or virtually eliminates the need to hold inventories.

Job production

The production of items one at a time.

Batch production

The production of goods in batches, with each batch going through one stage of production before the next.

Flow production

The production of very large quantities of identical goods using a continuously moving process.

Overproduction

Producing goods before they have been ordered by customers, leading to high storage costs.

Waiting

When goods are not moving or being processed, resulting in waste.

Transportation

Moving goods around unnecessarily, which does not add value to the product.

Unnecessary inventory

Excess inventory that occupies space, hinders production, and incurs costs.

Motion

Actions that waste time and may pose health and safety risks.

Over-processing

Using complex machinery for simple tasks, which is wasteful.

Defects

Faults in goods that require fixing and inspection, wasting time.

Kaizen

Means 'continuous improvement' in Japanese, focusing on waste elimination.

Cell production

Production line divided into separate units, each making a part of the finished product.

Component

Any of the pieces or parts that make up a product or machine.

Component

Any of the pieces or parts that make up a product or machine.

Capacity

The (maximum) rate of output of a factory or other facility.

Plant

A collective word for all the buildings, machines, equipment, and other facilities used in the production process.

Location

The geographical situation of a factory or other facility.

Supply chain

A network of organizations involved in producing and delivering goods or a service.

Outsourcing

Buying products or processed materials from other companies rather than manufacturing them.

Economies of scale

The cost savings that can be achieved from a large-scale production.

Lead time

The time needed to perform an activity such as manufacturing a product or delivering it to a customer.

Obsolescence

Becoming out of date; being replaced by something newer and better or more fashionable.

Opportunity cost

The benefits or advantages lost by spending money in one way rather than another.

Shortages

Insufficient supply to meet demand.

Work-in-progress

Materials and components that have begun their transformation into finished goods but are not yet complete.