Production
Degree how efficient the inputs are in production process, especially labor and capital.
What is productivity?
Difference between current level of output and break-even output.
What is the margin of safety?
Checking for quality at the end of the production process.
What is quality control?
Costs that can be measured in financial terms, e.g. the cost of land, finance the company needs to invest related to numbers.
What are quantitative factors?
Japanese term meaning ‘continuous improvement’ through the elimination of waste.
What is Kaizen?
When total revenue equals total costs
What is the break-even point?
Setting quality standards throughout production.
What is quality assurance?
Factors not related to numbers or finance that can directly impact costs, e.g. ethical issues, government regulations etc
What are qualitative factors?
Production method with minimum waste of resources
What is lean production?
Costs that change proportionally with the change in output.
What are variable costs?
The continuous improvement of products and processes by focusing on quality at each and every stage of production.
What is Total Quality Management (TQM)
A person who operates and takes the risk for a new business venture.
What is an entrepreneur?
Unique, high quality goods are produced using this method.
What is job production?
Factors that lead to a reduction in average costs as a business increases in size.
What is economies of scale?
Production of a good or service which meets customers expectations.
What are quality standards?
A business based on the use of the brand names, promotional logos and trading methods of an existing successful business
What is a franchise?
Large quantities of a product are produced in a continuous process
What is flow or mass production?
Factors that lead to an increase in average costs as a business grows beyond a certain size.
What are diseconomies of scale?
Famous quality standard called ISO for short
What is International Organization for Standardization?
Where two or more businesses start a new project together, sharing capital, risks and profits.
What is a joint venture?