3.4 decision making to improve operational performance
- Created by: lara__001
- Created on: 31-12-18 12:33
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- 3.4 Decision-making to improve operational performance
- Capacity - the capacity of a business is a measure of how much output it can achieve in a given period (per day/week/ month/ year)
- Capacity utilisation - the percentage of a business' capacity that is actually being used over a specific period
- Labour turnover - the amount of people leaving the business at the end of a year
- Lean production - is a systematic method for waste minimisation within a manufacturing system without sacrificing productivity, which can cause problems
- Efficiency - the ability to avoid wasting materials, energy, efforts, money, and time in doing something or in producing a desired result
- Methods of production:
- JIT - just in time, to produce what is needed only wen it is needed
- JIC - just in case, the inventory management strategy that companies use when they store a large amount of inventory because they are likely to run out of stock.
- Cell production - is a form of team working and helps ensure worker commitment, as each cell is responsible for a complete unit of work
- Simultaneous engineering - Concurrent new product development through employing cross-functional teams to reduce cycle time.
- Time based management - is an aspect of lean production. It is a general approach that recognises the importance of time and seeks to reduce the level of wasted time in the production processes of a business
- Labour productivity - this measures the output per employee and is a measure of how productive the workforce is
- Unit costs - expenditure incurred in producing one unit of a good or service, computed usually as average cost
- Kaizen - continuous improvement, for example by making marginal improvements in efficiency
- Quality control - a system of maintaining standards in manufactured products by testing a sample of the output against the specification at the end of the production process
- Quality assurance/ total quality management (TQM) - the maintenance of a desired level of quality in a service or product, especially by means of attention to every stage of the process of delivery or production
- Quality - a product is of good quality if it meets the needs and expectations of the customer
- Inventory - refers to the supplies and stock held by a business
- Supply chain - refers to the network of providers involved in the process of getting the product to the customer
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