Batch processing is a method of production where similar individual units are grouped together as a batch to streamline the production process and improve cost-efficiency. Often used when the goods produced are small or homogeneous, batch processing helps organizations manage resources more effectively.
Downsizing is a strategic measure taken by organizations to reduce their workforce and operational size with the primary goal of boosting profitability, cost-efficiency, and flexibility.
Activities or services performed within an organization, without reliance on external contractors, often linked to ongoing debates about cost-efficiency versus outsourcing.
In economics, the least-cost production rule states that in order to maximize profit, a firm must ensure that each dollar spent on each unit of input produces at least an equivalent dollar value of output.
Mass customization refers to the methods used to produce customized goods and services on a large scale. Combining elements of mass production with individualized customization, it's a key strategy in contemporary business that enhances customer satisfaction while maintaining cost efficiency.
Motion study is the process of analyzing work to determine the most cost-efficient motions for performing tasks. It's a major contribution of scientific management, primarily developed by Frederick W. Taylor and Frank and Lillian Gilbreth.
Optimum capacity is the level of output of manufacturing operations that produces the lowest cost per unit.
Outsourcing refers to the business practice where an organization contracts out a business process or operation to a third-party provider. This can involve services, manufacturing, or handling specific operations to leverage expertise, cost efficiency, and other benefits.
The Scale Effect refers to the cost advantages that a business obtains due to the size, output, or scale of its operation. Primarily, the cost per unit of output generally decreases with increasing scale as fixed costs are spread out over more units of output.
