Production of goods and services

production

the process of combining inputs together to turn them into product outputs

labour productivity

the number of units of output produced for every unit of labour input in a given time period

productivity of labour (employees)

output per period (units) / number of employees = _ units per employee

efficiency

a decrease in average costs as output increases

inventory

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

Raw materials and components

the inputs needed for the production process

Work-in-progress

goods that are not yet finished and have not yet completed the production process

Finished goods

the goods that are ready to be sold or delivered to consumers

lean production

the production of goods and services while aiming to minimise the waste of resources

Just-in-time (JIT) inventory control

The raw materials and components arrive from suppliers just as they are needed by the production process. No inventory is held by the business.

Kaizen

Kaizen is a Japanese term meaning ‘continuous improvement‘. This approach gives all employees the opportunity to make suggestions about how to improve quality or productivity.

job production

the production of one-off items specific to customer requirements

batch production

where groups of identical products are made; each group passes through

flow production

the continuous production of large quantities of identical goods

Computer-aided manufacturing (CAM)

computers control the machinery and equipment used in the production process

3D printing

Using materials such as metals, plastic and rubber 3D printing can quickly create customise products

sustainability

businesses that are trying to reduce the negative environmental impact of its operations