Production Methods
This production method involves making standardized products in large quantities using assembly lines.
What is mass production?
The best location or the area where work takes place. This includes physical space and resources.
What is Land?
This is when a business hires another company to perform a task or service instead of doing it internally.
What is outsourcing?
This refers to the stock of raw materials, work-in-progress, and finished goods.
What is inventory?
This is the level of output where total revenue equals total costs.
What is break-even point?
This method produces one unique, customized product at a time.
What is job production?
The right number of workers with the appropriate skills. This involves hiring, training, and motivating employees.
What is labor?
This involves relocating business operations to another country to reduce costs.
What is offshoring?
A framework focusing on profit, social impact, and environmental impact.
What is the Triple Bottom Line?
This cost does not change with output levels.
What is fixed cost?
This production method creates a set number of identical items before switching to another product.
What is batch production?
The equipment, machinery, and technology needed to produce goods or services.
What is Capital?
This occurs when a company brings previously outsourced activities back in-house.
What is insourcing?
The planning, organizing, coordinating, and controlling of all activities involved in transforming inputs into outputs.
What is Operations Management?
Total Revenue - Total Costs
What is Profit or Loss?
An advantage of this type of production is that customers get customized products at reasonable prices.
What is mass customization?
This quality management approach aims for zero defects and continuous improvement.
What is Total Quality Management (TQM)?
This term describes bringing production back to the company’s original country from overseas.
What is reshoring?
Meeting current needs without compromising the ability of future generations to meet theirs.
What is Sustainability?
This formula is used to calculate contribution per unit.
What is selling price minus variable cost?
This type of production is most suitable for products like oil refining or car assembly plants.
What is flow production (or continuous production)?
The ability of owners and employees to come up with new ideas, find solutions to problems, and think creatively.
What is Enterprise?
A company moves its call center to India to reduce labor costs. This is BOTH of these strategies.
What are outsourcing and offshoring?
Costs that change based on how much you produce.
What is variable costs?
This term refers to the maximum output a business can produce in a given time period.
What is capacity?