2.4.1 Production, Productivity And Effiency

Question 1

Advantages and disadvantages of job production

Answer 1

Advantages
- Quality is high because workers are skilled
- workers are well motivated because work is varied
- products can be custom made
- production is easy to organise

Disadvantage
- High labour costs due to skilled workers
- production may be slow - long lead times
- a wide range of specialist tools may be needed
- generally an expensive method of production

Question 2

Advantages and disadvantages of batch production

Answer 2

Advantages
- Workers are likely to specialise in one process
- Unit costs are lower because output is higher
- production is flexible since different orders can be met
- more use of machinery is made

Disadvantages
- more complex machinery may be needed
- careful planning and coordination is needed
- less motivation because workforce specialise
- if batch are small, costs will still be high
- money may be tied up in work in progress

Question 3

What is the main features of a flow production

Answer 3

The production of large quantity
- a simplified or standardised product,
- a semi skilled workforce specialising in one operation, only
- large amounts of machinery and equipment,
- large stocks of raw material, and component.

Question 4

Advantages and disadvantages of flow production

Answer 4

Advantages
- very low unit costs due to economies of scale
- output can be produced very quickly
- modern plant and machines can allow some flexibility
- production speed can vary according to demand

Disadvantages
- products may be too standardised
- huge set-up costs before production can begin
- worker motivation can be very low - repetitive tasks
- breaks in production can be very expensive

Question 5

Factors influencing productivity

Answer 5

• Specialisation and the division of labour
• Education and training
• Motivation of workers,
• working practice,
• labour,
• flexibility
• capital productivity

Question 6

Factors affecting efficiency

Answer 6

• introducing standardisation
• outsourcing
• relocating
• downsizing
• delayering
• new technology
• lean production
• Kaizen
• JIT

Question 7

Batch production

Answer 7

A method that involves completing one operation at a time on all units before performing the next

Question 8

Capital intensive

Answer 8

Production methods that make more use of machinery relative to labour

Question 9

Cell production

Answer 9

Involves producing a family of products in a small self contained units within a factory

Question 10

Division of labour

Answer 10

Specialisation in specific tasks or skills by an individual

Question 11

Downsizing

Answer 11

The process of reducing capacity usually by laying off staff

Question 12

Efficiency

Answer 12

Producing a level of output, where average costs is minimised

Question 13

Flow production

Answer 13

Large-scale production of a standard product where each operation on the unit is performed, continuously one after the other, usually on a production line.

Question 14

Job production

Answer 14

A method of production that involves employing all factors to complete one unit of output at a time

Question 15

Kaizen

Answer 15

A Japanese term that means continuous improvement

Question 16

Labour intensive

Answer 16

Production methods that make more use of labour relative to machinery.

Question 17

Lean production

Answer 17

An approach to operations that focus on the reduction of resources

Question 18

Outsourcing

Answer 18

Giving work to subcontractors to reduce cost

Question 19

Standardisation

Answer 19

Using uniform resources and activities or producing a uniform product

Question 20

Advantages and disadvantages of Lean Production

Answer 20

Advantages of Lean Production:

1.Improved Efficiency: Lean production can help improve the efficiency of a manufacturing process by reducing waste and streamlining production. This can lead to increased productivity and lower costs.

2. Enhanced Quality: Lean production focuses on continuous improvement and quality control. By eliminating waste and improving processes, lean production can lead to higher-quality products and fewer defects.

3.Increased Flexibility: Lean production can help companies become more agile and responsive to changing market conditions. By reducing lead times and improving production processes, companies can quickly adapt to new demands and opportunities.

Disadvantages of Lean Production:

1.High Initial Costs: Implementing lean production can require significant investment in training, equipment, and process improvement. This can be challenging for smaller companies or those with limited budgets.

2.Resistance to Change: Implementing lean production often requires significant changes to the way a company operates. Employees may resist these changes, leading to resistance and slower implementation.

3. Risk of Over-Optimization: Lean production can lead to over-optimization, where a process is so streamlined that it becomes inflexible and unable to adapt to changing conditions. This can be a significant risk for companies operating in rapidly changing markets.

Question 21

Advantages and disadvantages of outsourcing

Answer 21

Advantages of Outsourcing:

1. Cost Savings: Outsourcing can help companies reduce costs by taking advantage of lower labor costs in other countries. This can be especially beneficial for companies operating in high-wage countries.
2. Access to Expertise: Outsourcing can provide companies with access to specialized skills and expertise that may not be available in-house. This can help improve quality, efficiency, and innovation.

3.Focus on Core Business: Outsourcing can allow companies to focus on their core competencies and strategic objectives by outsourcing non-core activities to external partners. This can lead to greater efficiency and competitiveness.

Disadvantages of Outsourcing:

1.Quality Concerns: Outsourcing can raise concerns about quality control and product standards. If the outsourcing partner does not meet quality standards, it can harm the reputation of the company.

2. Communication Issues: Outsourcing can lead to communication challenges due to differences in language, culture, and time zones. This can lead to misunderstandings and delays in project completion.
3. Loss of Control: Outsourcing can result in a loss of control over critical business processes. If the outsourcing partner does not meet expectations, it can be difficult to make changes or take corrective actions.

Question 22

Advantages and disadvantages of downsizing

Answer 22

Advantages of Downsizing:

1. Cost Reduction: Downsizing can help companies reduce their operating costs by reducing their workforce, consolidating operations, and eliminating redundant positions. This can lead to increased profitability and financial stability.
2. Increased Efficiency: Downsizing can help streamline operations and improve efficiency by eliminating redundant positions and simplifying organizational structures. This can help reduce bureaucracy and improve decision-making.
3. Improved Flexibility: Downsizing can help companies become more agile and responsive to changing market conditions. By reducing the size of the organization, companies can quickly adapt to new demands and opportunities.

Disadvantages of Downsizing:

1. Negative Impact on Employees: Downsizing can have a significant negative impact on employees who lose their jobs or experience job insecurity. This can lead to low morale, reduced productivity, and increased turnover.
2. Reduced Innovation and Creativity: Downsizing can lead to a reduction in innovation and creativity as companies focus on short-term cost-cutting measures rather than long-term strategic objectives.
3. Loss of Organizational Knowledge: Downsizing can result in a loss of valuable organizational knowledge and expertise. This can make it difficult for companies to maintain quality and competitiveness over the long term.