2.2

Question 1

define production

Answer 1

the action of making or manufacturing from components or raw materials or the process of being so manufactured

Question 2

what is job production

Answer 2

making one unique product from start to finish

Question 3

what is batch production

Answer 3

making batches of similar products

Question 4

what is flow production

Answer 4

continuous production of identical items

Question 5

what are the advantages and disadvantages of job production

Answer 5

+/ you can charge a premium price
high quality
motivated workers
-/ expensive to hire specialist staff
labor intensive
high selling costs
takes a long time

Question 6

what are the advantages and disadvantages of batch production

Answer 6

+/ production can be varied to meet customer needs
less labor intensive
employees specialize so become better at their job
lower skilled workforce so lower costs
-/ small batched carry high average unit costs
repetitive work so less motivation

Question 7

what are the advantages and disadvantages of flow production

Answer 7

+/ large quantities made
only a small number of unskilled workers are needed
economies of scale
lower production cost
computerized
-/ not flexible
cant charge a high price
demotivated staff
high start up costs

Question 8

what is cell production

Answer 8

production of items is organized into groups and then teams are set at workstations and see a product through to completion

Question 9

what are the advantages and disadvantages of cell production

Answer 9

+/ large range of products
gain skilled workers
-/ requires a lot of organization
high start up costs

Question 10

what is lean production

Answer 10

an approach to management that focuses on cutting out waste and ensuring quality

Question 11

define productivity

Answer 11

the measure of the efficiency of a person, machine, factory or production

Question 12

how do you calculate labor productivity

Answer 12

output (per time period) / number of employees (per time period) X100

Question 13

how do you calculate capital productivity

Answer 13

output/ capital X100

Question 14

what are the problems with holding too much stock

Answer 14

waste of space
may be perishable
goes out of style
may have to be kept in certain conditions
money could be invested elsewhere
higher insurance costs
theft
may not sell all the stock

Question 15

what is jit (just in time)

Answer 15

helps negate the issues associated with holding too much stock by introducing the required supplies at the moment they are needed

Question 16

what are the advantages of jit

Answer 16

increased efficiency
reduces costs
no space wasted holding stock
less capital tied up in stock

Question 17

what are the disadvantages of jit

Answer 17

can’t change stock levels to meet demand
no room for error
if deliveries are late production may have to be stopped
will not get economies of scale
complex to organize

Question 18

how does jit impact staff

Answer 18

work is dependent on deliveries
production may be halted
lots of training required
better pay as more complex to carry out

Question 19

how does jit impact suppliers

Answer 19

more stressful to organise
need a good relationship between business and supplier
increased profit

Question 20

what are the aims of lean production

Answer 20

aims to reduce:
time
labor
capital
space
raw materials

Question 21

define capacity utilization

Answer 21

the proportion of your maximum output that is currently being used

Question 22

what is the equation for capacity utilization

Answer 22

actual output/
max output X100

Question 23

what are the advantages and disadvantages of working at 100% capacity utilisation

Answer 23

+/ lower unit costs
more products produced in a shorter period of time
job security
-/ demotivated staff
needs demand otherwise there is waste
more frequent machine breakdown
not possible to benefit from an increase in demand
pressure causes mistakes

Question 24

why may a business choose to work below 100% capacity utilisation

Answer 24

lower demand
capacity can reflect demand so less waste
loss of quality

Question 25

how may a business operate above capacity

Answer 25

offer overtime to staff
recruit more staff (temporarily)
delay maintenance
subcontracting

Question 26

define quality

Answer 26

how well the product functions at its intended job and how long it lasts

Question 27

what are the advantages and disadvantages of offering high quality goods

Answer 27

+/ good reputation
charge higher price
loyal customers
increased profit
build a brand
-/ expensive to manufacture
must be consistent
hard to maintain
potentially lower profit margin

Question 28

define quality control

Answer 28

checking and reviewing work which is already finished (usually a sample)

Question 29

what are the advantages and disadvantages of quality control

Answer 29

+/ fast
ensures a certain level of quality
-/ must pay for checks
faults will slip through
not all products checked

Question 30

what is quality assurance

Answer 30

builds quality into every step of production, every worker is responsible for ensuring their work meets quality standard

Question 31

what are the advantages and disadvantages of quality assurance

Answer 31

+/ ensure all products are good quality
gives workers more responsibility
less returns
better reputation
-/ higher wages
slows down production
less consistency as staff have different standards
may require training

Question 32

what are quality circles

Answer 32

group of employees meet on a regular basis to solve production problems

Question 33

what are the advantages and disadvantages of quality circles

Answer 33

+/ motivates staff
more efficient
-/ must be formed naturally
requires a manager
hard to develop

Question 34

what is TQM (total quality management)

Answer 34

management approach that put quality at the center of the business

Question 35

what are the advantages and disadvantages of TQM

Answer 35

+/ ensures quality
high quality standard
good reputation
premium prices
-/ time consuming
high wages
high skills
lots of training