Posts published in “PRODUCTION”

Excess capacity exists when the current levels of demand for a business’s products are less than the full production capacity of a business.

Capacity shortage exists when the current levels of demand for a business’s products are more than the full production capacity of a business.

Productivity is a relative measure of how efficiently the inputs are changed into output - the ratio of outputs to inputs in a production process.

Capacity in business is the maximum output that a business can produce in a given period with the available resources within an organization.

The quality and effectiveness of management are important determinants of operational efficiency of a business organization.

Efficiency means productivity. It is about the management of resources, using machinery, making people work harder, processes and people altogether.

Recently, there has been a move towards more modern production methods that use new technology to produce products - goods and services.

Intellectual capital is becoming increasingly important in knowledge-based economies. It plays a vital role in knowledge-based economy.

Scale of production means the size of the business operation. It refers to the volume or quantity of goods that a company or organization produces.

The concept of Supply Chain Management (SCM) has become an important consideration for firms – supply chains have simply become increasingly complex.

A business faces a make-or-buy decision when it has to make a choice between manufacturing a product on its own, or purchasing it from a supplier.

Production decisions mainly evolve around preparing input resources to supply output products to meet expected market demand.