2.4.1 Production, productivity and efficiency

Question 1

What is job production?

Answer 1

Producing one item at a time as ordered by the customer

Job production is often used for unique, bespoke items such as furniture or architecture.

Question 2

What is batch production?

Answer 2

Producing many similar items together

Batch production allows for greater use of machinery and worker specialization.

Question 3

List three advantages of job production.

Answer 3

• Changes can be handled easier
• Higher job satisfaction
• Can charge higher prices

Question 4

List three disadvantages of job production.

Answer 4

• High unit costs
• High labour costs
• Time consuming

Question 5

What are the benefits of economies of scale?

Answer 5

Lower unit costs due to increased production

Economies of scale can arise from both job and batch production methods.

Question 6

What is flow production?

Answer 6

Continuous movement through the production process

Flow production is typically used for standardized items such as clothes and electronic goods.

Question 7

List two advantages of flow production.

Answer 7

• Benefits from economies of scale
• Fastest method

Question 8

List two disadvantages of flow production.

Answer 8

• Mass produced = less differentiation
• Low flexibility

Question 9

What is cell production?

Answer 9

Splits production into cells using different methods

Cell production can improve motivation and allow for multi-skilled workers.

Question 10

List two advantages of cell production.

Answer 10

• Improved motivation
• Greater overall quality

Question 11

List two disadvantages of cell production.

Answer 11

• High skill training is expensive
• Pressure on workers

Question 12

Define productivity.

Answer 12

Measures the output per input per hour

Productivity is influenced by factors such as production methods and employee motivation.

Question 13

What factors affect productivity?

Answer 13

• Production methods
• Motivation
• Investment in new technology
• Specialisation

Question 14

Define efficiency.

Answer 14

Measures how a business makes use of its assets

Efficiency is linked with competitiveness and productivity.

Question 15

What factors affect efficiency?

Answer 15

• Input (number of workers/machines)
• Method of production

Question 16

True or False: An increase in productivity leads to lower unit costs.

Answer 16

True

Question 17

What is capital intensive production?

Answer 17

Production that requires significant investment in machinery

Capital intensive production may lead to higher quality and consistency in output.

Question 18

List two advantages of capital intensive production.

Answer 18

• Benefits from economies of scale
• Potential for higher productivity

Question 19

List two disadvantages of capital intensive production.

Answer 19

• Significant initial investment
• Reduced competitiveness

Question 20

What is labour intensive production?

Answer 20

Production that relies more on human labor than machinery

Labour intensive production can be flexible but may have higher costs associated with labor turnover.

Question 21

List two advantages of labour intensive production.

Answer 21

• Unit costs may still be low
• Labour is flexible

Question 22

List two disadvantages of labour intensive production.

Answer 22

• High costs of labour turnover
• Absenteeism can impact productivity