Posts published in “PLANNING PRODUCTION”

Efficiency is a crucial concept in business, referring to the optimal use of resources to achieve maximum output by minimizing waste and maximizing productivity.

In business, productivity refers to how efficiently factors of production, or resources, are converted into outputs such as products like goods or services.

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.

The role of operations management impacts on all functional areas of a business organization including marketing, Human Resources (HR) and finance.