1. Production Key Terms
Production Methods
• Batch Production: The production of a similar or identical good in batches with production stopped to allow
changes before the next batch is made.
• Cell Production: A firm uses production teams to make part or all of a specific product. It is sometimes
called team working because they are self sufficient.
• Flow production: The manufacturing of identical goods in large numbers on a continuous production line,
sometimes called mass production.
• Job Production: Producing a single one-off product or service to meet the individual requirements of the
customer.
• Lean Production: A method of being efficient and cutting out
waste in a production system.
Stock
• Stock Control: A method of assessing when stock has to be re-
ordered.
• Stock: The mixture of raw materials, components, parts and fin-
ished goods a business needs in order to operate.
• Stock Turnover: The time that it takes for goods to be sold and
replaced.
Production Key Terms
Production Methods
• Batch Production: The production of a similar or identical good in batches with production stopped to allow
changes before the next batch is made.
• Cell Production: A firm uses production teams to make part or all of a specific product. It is sometimes
called team working because they are self sufficient.
• Flow production: The manufacturing of identical goods in large numbers on a continuous production line,
sometimes called mass production.
• Job Production: Producing a single one-off product or service to meet the individual requirements of the
customer.
• Lean Production: A method of being efficient and cutting out
waste in a production system.
Stock
• Stock Control: A method of assessing when stock has to be re-
ordered.
• Stock: The mixture of raw materials, components, parts and fin-
ished goods a business needs in order to operate.
• Stock Turnover: The time that it takes for goods to be sold and
replaced.

2. Production Key Terms
Production
• Division of Labour: When the production process is split up into different tasks and each worker performs
one of those tasks. This can be called specialisation.
• Just in time (JIT): A strategy involving the supply of stocks to the producer just in time for their use in
the production process.
• Productivity: A measure of the efficiency or work rate of the workforce.
• Quality Control: Checks are made on the final products for possible defects.
• Research & Development: Trying out new ideas and developing new technology to come up with better
products.
• Total Quality Management: Everyone in the workplace is encouraged to aim for higher quality in every-
thing they do.
• Value Added: The difference between the value paid for the inputs used in production and the value of a
firm’s output.
Production Key Terms
Production
• Division of Labour: When the production process is split up into different tasks and each worker performs
one of those tasks. This can be called specialisation.
• Just in time (JIT): A strategy involving the supply of stocks to the producer just in time for their use in
the production process.
• Productivity: A measure of the efficiency or work rate of the workforce.
• Quality Control: Checks are made on the final products for possible defects.
• Research & Development: Trying out new ideas and developing new technology to come up with better
products.
• Total Quality Management: Everyone in the workplace is encouraged to aim for higher quality in every-
thing they do.
• Value Added: The difference between the value paid for the inputs used in production and the value of a
firm’s output.