Operations
What is it called when you turn inputs into outputs?
Transformation
What is output per worker?
Another word for stock
Inventory
What is it called when stock arrives only when needed
JIT
How much of maximum output is used
capacity utilisation
What are resources used in production called?
Input
What is it called when there is higher output, but same amount of workers?
Productivity rise
What is stock held in case of shortage
Buffer stock
JIT reduces these costs
Holding costs
What is the utilisation formula
Current output/ maximum output x 100
What are outputs that are intangible?
Services
What is one way to improve employee skills?
Training
Stock level that triggers a new order
Re order level
JIT needs reliable ___?
suppliers
Low utilisation raises___?
unit costs
What is the difference between input cost and selling price called?
Productivity rise usually lowers this.
Unit cost
What is the amount ordered each time?
Re order quantity
What is the biggest JIT risk?
Stockouts
Unused capacity is called
excess capacity
What is the main aim of operations management?
Efficiency
Low employee motivation can reduce this.
Productivity
Too much stock increases this
Storage costs
Unpredictable demand makes JIT more ___?
risky
One benefit of spare capacity (starts with F)
flexibility