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The cost disadvantages a business faces when it grows too large.
Diseconomies of Scale
The cost advantages a business gains by increasing its scale of production.
Economies of Scale:
The point where a business's total revenue equals its total costs.
Break-Even
Costs that change directly with the amount a business produces (e.g., raw materials).
Variable Costs
Costs that stay the same regardless of how much a business produces (e.g., rent).
Fixed Costs
Using computer software to design products.
Computer-Aided Design (CAD)
Producing one-off, unique items tailored to individual customer needs.
Job Production
Continuous production of identical products, usually on a production line.
Flow Production
Producing a limited number of identical products before switching to produce a different batch.
Batch Production
A Japanese term for continuous improvement, where small changes are made regularly to improve quality and efficiency.
Kaizen
A stock management system where materials arrive just when they are needed for production.
Just-in-Time (JIT)
A method of production that aims to reduce waste and improve efficiency.
Lean Production
Using machines or technology to do work automatically, with little or no human input.
Automation
The amount of output produced per unit of input (like workers or machines) in a given time.
Productivity
The activities involved in making goods or providing services.
Operations
Using resources well, without wasting time, money, or materials.
Efficiency
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