2.4.1 Production, Productivity And Efficiency

Question 1

What is meant by job production

Answer 1

Job production is when one off bespoke products are made to suit customers requirements

Question 2

Identify one advantage and one disadvantage of job production

Answer 2

Advantage: can charge premium price, highly personal service - strong USP
Disadvantage: low volume of preoducts made, high unit costs

Question 3

What is meant by batch production

Answer 3

When a business makes a group of products made to one specification at a time

Question 4

Identify one advantage and one disadvantage of batch production

Answer 4

Advantage: more efficient than job but customer can still get some variety
Dis: less efficient than flow with lower quality job

Question 5

What is meant by flow production

Answer 5

Flow production is the continuous production of a single standardised product

Question 6

Identify one advantage and one disadvantage of flow production

Answer 6

Advantage: heavily efficient- lower unit costs, high volumes of products can be mass produced
Dis: every product is identical - price might be lower, more likely competitors producing similar products

Question 7

What is meant by automation

Answer 7

Automation is when a business uses computers or machines to make products and services instead of labour

Question 8

What is meant by cell production

Answer 8

De,k production is when workers are grouped into teams often linked with flow production

Question 9

Identify one advantage and one disadvantage of cell production

Answer 9

Advantage; can improve quality as workers are more motivated when working in teams
Disadvantages: not as quick as flow production, difficult to replace workers

Question 10

Under what circumstances is job production the most effective method?

Answer 10

Job is most efficient when production volumes are very low

Question 11

Under what circumstances is batch production the most effective method

Answer 11

Batch production is most efficient when the customer wants a limited range of choice and relatively high volumes

Question 12

Under what circumstances is flow production the most effective method

Answer 12

Flow is most effective when a product is mass market and cost of production is the most important factor to customers

Question 13

Under what circumstances is cell production the most effective method

Answer 13

Cell production is most effective when motivation in the production line is an issue or if TQM and lean production methods are being introducted

Question 14

What is meant by productivity

Answer 14

Productivity is a measure of efficiency which looks at output per unit of input over a time period

Question 15

What is the formula for calculating productivity

Answer 15

Output / input

Question 16

How is productivity different from production

Answer 16

Productivity measures the efficiency with which inputs are convert to output. Production just looks at inputs

Question 17

Identify 3 factors that affect productivity

Answer 17

Training, motivation and access to capital/ tools/ machinery…

Question 18

How does productivity link to competitiveness

Answer 18

Because if productivity is high, this leads to lower unit costs and can lead to lower prices which improves competitiveness

Question 19

What is meant by efficiency

Answer 19

Efficiency is about producing lowest unit cost

Question 20

How does the quality and age of machinery affect efficiency

Answer 20

Quality and age of machinery affects productivity, and this affects unit costs and prices

Question 21

How do the skills and experience of workers effect efficiency

Answer 21

The higher the skills of the workers, the more productive they will be and the more efficient they will be

Question 22

How does the level of employee motivation affect efficiency

Answer 22

Highly motivated employees improves productivity which improves efficiency

Question 23

What does labour intensive production mean and illustrate with an example

Answer 23

Labour intensive production is when the majority of inputs are labour rather than machines

Question 24

Identify 3 implications to a business if they are labour intensive

Answer 24

Recruitment and selection is more important, motivation and training is important as well as labour turn over

Question 25

What does capital intensive production means and illustrate with an example

Answer 25

Capital intensive production means that most of the inputs are machinery rather than labour

Question 26

Identify 3 implications to a business if they are capital intensive

Answer 26

Business will need to produce high volumes in order to achieve economies of scale, start up costs may be high, depreciation will be an issue

Question 27

Is job production likely to be labour or capital intensive

Answer 27

Job production is likely to be more labour intensive

Question 28

What is the key difference between production and efficiency

Answer 28

Effeucuency also takes into account the cost of inputs, productivity is a necessary but not sufficiency condition for efficiency