A refinement of the Economic Order Quantity (EOQ) model that accounts for circumstances where goods are produced in batches.
Expected Actual Capacity refers to the forecasted production or service output that a company anticipates under normal conditions, taking into account scheduled downtime, maintenance, and other operational factors.
A manufacturing method where several different products are produced on the same production line, one after the other, to maximize productivity.
A measurement of production in terms of the time taken for a machine operation to complete a given amount of production.
A strategic choice in business operations regarding whether to produce goods internally or to purchase them from external suppliers. It involves evaluating various factors including cost, capacity, quality, and opportunity costs.
Material Requirements Planning (MRP) is a production planning, scheduling, and inventory control system used to manage manufacturing processes. Most notably, it ensures that materials are available for production, products are available for delivery to customers, and inventories are maintained at the lowest possible level.
Production control involves planning, routing, scheduling, dispatching, and inspecting the operations or items being manufactured to ensure efficiency and quality in the production process.
Production planning is the administrative operation that ensures material, labor, and other resources necessary for the production process are available when and where needed in the required quantities.
Quantitative budgets refer to budgets that cover the non-financial aspects of budgetary control, including the number of units of products planned to be produced and the number of direct labor hours to be worked.
A Rectification Note is a form issued to the production department of an organization, detailing the requirements to rework or rectify a piece of work.
Scheduled production refers to the planning and timetabling of the production process for specific products, detailing when and how each production sequence is to occur.
Costs associated with establishing a new manufacturing procedure. Setup costs include design costs, acquisition and location of machinery, and employee hiring and training.
