Production of goods and services
Process of adding value to a product (using four factors of production) to satisfy costumers’ needs and wants
Production
Introduction of machines into production methods.
Mechanisation
Power obtained from sources that are not used up in energy production
Renewable energy
These costs increase as output increases and fall if the level of output decreases
Variable costs
Setting quality standards throughout the production process and checking these are reached at each stage of the process
Quality assurance
A variety of techniques used by businesses to cut down on waste of resources to increase efficiency.
Lean production
The use of advanced technology to make a production method work automatically without employee control.
Automation
Businesses minimize the use of natural resources and dangerous materials to reduce waste and pollution.
Sustainable production
The level of output / sales at which total costs equals total revenue
Break-even point
A method to ensure that goods and services meet the quality standards which focuses on the quality of the finished product.
Quality control
Any faults require the goods to be fixed and time can be wasted inspecting the products
Defects
The use of software and computer-controlled machinery to automate a manufacturing process.
Computer-aided manufacturing (CAM)
A good ____________ can be used in promotions and will create goodwill towards the business.
Brand image
The quantity that must be produced or sold for total revenue to equal total costs.
Break-even output
A tax charged on importing raw materials from other countries
Tariffs
A method of production where similar products are made in groups
Batch production
This device is used at checkouts in shops when operator scans the barcode of each item individually
Electronic Point of Sale (EPOS)
One disadvantage of becoming more sustainable when a company need to spend a huge budget at the beginning.
High initial costs / initial costs
A type of economies of scale where large businesses are able to use more machineries in their production process
Technical economies of scale
Tesla has a large factory making its electric vehicles in China, because people in China buy more electric vehicles than other countries.
What location factor is this?
Size's of country's market / market
An improvement that comes from the ideas of the workers to organize their work place in order to achieve efficiency
Kaizen
Mention three advantages of changes in technology for businesses
Lower average costs / consistent quality / higher production / Safer production / Improved customer service / fewer employees needed
Legal controls
The level of sales that exceed the break-even point (profit)
Margin of safety
Subsidies / financial aids given to businesses locating in Indonesia is an example of __________.
Government incentives