Manufacturing Efficiency

Focused Factory
A focused factory is a form of production operation limited to a very small number of products aimed at a specific target market. This approach necessitates a smaller investment and facilitates the development of greater expertise compared to a more diversified manufacturing operation.
Idle Capacity Variance
Explores the concept of idle capacity variance, a key metric in understanding the efficiency and utilization of resources in manufacturing and service settings.
JIT Techniques
Just-In-Time (JIT) techniques are inventory management strategies designed to increase efficiency and reduce waste through the timely knowledge and handling of materials.
Machine Hour
A measurement of production in terms of the time taken for a machine operation to complete a given amount of production.
Process Division
A method of dividing the productive procedures in a manufacturing organization into organizational segments to optimize efficiency and specialization.
Production Order
A detailed directive issued to the production department specifying the production tasks to be completed, including operations, quantities, timelines, and completion deadlines essential for streamlined manufacturing processes and efficient resource utilization.
Set-up Time
The time taken to prepare a machine, process, or operation to carry out production. It may involve such operations as tool setting, calibration, and the initialization of the production process.
Unit Standard Production Cost
The unit standard production cost is the cost per unit of production, incorporating all standard overheads, direct labor, and direct materials, used to measure efficiency and control costs in manufacturing.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.