Define: JIT
Just in Time: A system of production where materials are located as needed without holding inventory
Define: JIC
Just in Case: Materials, goods, and even labor are kept on hand, just in case.
Define: Kaizen
The concept of continuous improvement, often by encouraging small solutions from the bottom up.
The 7 Wastes - TIM WOOD
Transport, Inventory, Motion, Waiting, Over-processing, Overproduction, Defects
Define: Leveled Production
Consistent production that can be used to produce excess.
CIM: Computer Integrated Manufacture
Computers are used to, design, plan, purchase, do cost accounting, inventory control, and distribution.
Define: Quality Control
Constant oversight of production to watch for defects
Define: Statistical Process Control
Monitoring the frequency with which a production method produces defects
Define: Quality Assurance
Regulation on the minimum standard of quality for a product.
Pricing Strategies:
- Cost Plus
- Demand
- Competitor
- Product Line
- Price Minus
- Retail
- Whole Sale
- Target Costs
- Return on Investment
- Cost Plus: Cost of production plus whatever percentage
- Demand: What the market will pay.
- Competitor: Lower/equal to competitor
- Product Line: Set of products with a scale of prices
- Price Minus: Look at the market value then subtract desired profit.
- Retail: The price manufacturer suggest selliing at
- Whole Sale: The price of buying directly from the manufacturer
- Target Costs: Price minus
- Return on Investment: How much you want to make back
Define: Cost Vs. Price
Cost is the amount of money taken to produce something
Price is what that something is sold at
Define: Fix, Variable & Total Costs
Fixed: Cost that does not vary with sales, ie. rent
Variable: Cost that varies with output ie. materials.
Total: The sum of both above costs
