UNIT 7: PRODUCTION

production

the process of converting inputs (land, labour, capital) --> saleable goods

inventories

the stock of raw materials, work-in-progress and finished goods

lean production

the production of goods and services with the minimum waste of resources

job production

the production of items one at a time

batch production

production of goods in batches; each batch - one stage of production before moving onto the next stage

flow production

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

just-in-time (JIT)

a production method thats involves reducing or virtually eliminating the need to hold inventories of raw materials or unsold inventories of the finished product

cell production

production line is divided into separate, self'-contained units, each making a part of the finished product

lead time

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

plant

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

obsolescence

being out of date

outsourcing

buying products or processed materials from other companies rather than manufacturing them

economies of scale

cost savings arising from large-scale production

offshore production

the manufacture of goods in one country imported to domestic market

downtime

the time during which a machine is not working or is not able to be used

product recall

the removal from sale of an item that might be dangerous to consumers

capacity planning

measuring amount of work that can be done in certain amount of time with how many people, machine,... needed

planned obsolescence

designing products having limited lifespan --> need to be replaced more often

production run

a period of producing 1 particular product without adapting the production equipment

Kaizen

continuous improvement, focusing on the elimination of waste

overproduction

producing goods before they have been ordered

waiting

when goods are not moving or being processed in any way

transportation

moving goods around unnecessarily

unnecessary inventory

too much inventory --> takes up space

motion

any actions

over-processing

complex machinery is being used to perform simple tasks

defects

any faults require being fixed and inspecting the products