2.4.1 Productivity / Efficiency Flashcards

1
Q

What is production

A

•Production is the total number of units produced in a given period of time

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2
Q

What’s the methods of production

A

Job
Batch
Flow
Cell

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3
Q

Describe Job production

A

Job production where items are made individually and each item is finished before the next one is started.

  • The production of one off items to meet the needs of each individual customer
  • Cheap and easy to set up, but more expensive to produce
  • Often a specialist service
  • Time consuming to produce
  • Meet specific needs of customers
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4
Q

Advantages of job production

A

High quality

Producer meets individual need

Greater good satisfaction

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5
Q

Disadvantages of job production

A

Cost of producing one unit or job is highly labour intensive

Requires investment in skills and training

Potentially de motivating for staff as usually working in a big team

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6
Q

Describe batch production

A
  • Identical items are produced in groups (batches), each item passing through the production process at the same time
  • Allows for cheaper and quicker production of individual items
  • More uniform products
  • Variation can be achieved in different batches
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7
Q

Advantages of batch production

A
  • Making in batches reduces unit costs
  • Can still address specific customer needs (e.g. size, weight, style)
  • Use of specialist machinery & skills can increase output and productivity
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8
Q

Disadvantages of batch production

A
  • Time lost switching between batches – machinery may need to be reset
  • Need to keep stocks of raw materials. Cash also investment in work-in-progress

Potentially de motivational as don’t see job through

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9
Q

Describe flow production

A
  • Items flow along the production line in a continuous process
  • Suitable for mass production
  • Large scale
  • Identical items
  • Uses specialist machinery
  • Workers are each responsible for a small step along the process, this involves
  • Specialisation
  • Division of Labour
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10
Q

Advantages of flow production

A
  • Efficient process due to
  • Specialisation of workers
  • Division of labour
  • Use of machinery
  • Low cost per unit
  • Consistent quality
  • Continual output leading to less need to hold stock
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11
Q

Disadvantages of flow production

A
  • High initial costs
  • Machinery
  • Computers
  • Training
  • Mistakes or problems can shut down whole process
  • Repetitive work leading to low motivation
  • Standardised products only
  • Potentially de-motivating for staff as don’t get to see the job through or usually not working in a big team (social needs)
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12
Q

Describe cell production

A
  • A form of flow production whereby the production line is split into a series of self contained cells
  • Each cell takes responsibility for the production of complete units of output
  • The members of the cell work as a team to achieve goals and ensure quality standards are met
  • Increases quality, team work and motivation
  • Depends upon staff being well trained
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13
Q

Cell production advantages

A
  • Closeness of cell members should improve communication, avoiding confusion arising from misunderstood or non-received messages
  • Workers become multi-skilled and more adaptable to the future needs of a business
  • Greater worker motivation, arising from variety of work, team working (social needs) and more responsibility
  • Quality improvements as each cell has ‘ownership’ for quality on its area
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14
Q

Cell production disadvantages

A
  • The company culture has to encourage trust and participation, or workers can feel that they are being constantly pushed for more and more output with no respite
  • The company may have to invest in new materials handling and ordering systems suitable for cell production
  • Cell production may not allow a firm to use its machinery as intensively as in traditional flow production
  • Some small scale production lines may not yield enough savings to make a switch cell production economically worthwhile
  • The allocation of work to cells has to be efficient so that they have enough work, but not so much that they are unable to cope
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15
Q

What is production

A

Volume is output in a specific amount of time

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16
Q

What is productivity

A

The rate of output per each input

17
Q

What factors influence productivity of machinery

A

•Age of machinery and maintenance
•Training of operatives
•Quality of inputs e.g. a high quality printer can jam if cheap paper is used
Unforeseen events

18
Q

What does labour productivity measure

A

Output per worker

19
Q

How do you calculate labour productivity

A

Total output / number of employees

20
Q

Labour productivity will be influence by a number of factors including

A
  • Training and skills of the workforce
  • Motivation
  • Complexity of the product
21
Q

What is operating efficiency

A

•Operational efficiency involves maximising the output achieved from given inputs including machinery, materials and people

22
Q

Efficiency can be improved using a number of methods including ,

A
  • Increasing capacity utilisation (2.4.2)
  • Increasing labour productivity
  • Lean production techniques (2.4.3 and 2.4.4)
  • Choosing the optimal resource mix, labour v capital intensive
  • Using technology
23
Q

Increasing labour productivity , lowers

A

Labour costs per unit

24
Q

Labour productivity can be increase by

A
•Training
•Increasing motivation e.g. financial or non - financial rewards, job design
•Implement new technology
•Better working practises
Job rotation
25
Q

What are the difficulties increasing labour productivity

A
  • May impact negatively on quality and customer satisfaction
  • Damage to long term reputation
  • Increase waste affecting unit cost
  • Employees may feel exploited
  • Working harder for the same pay, may work with unions to negotiate higher wages
  • Business benefiting but not the employees
  • Increased workload leading to stress and demotivation
26
Q

Operating management involves combing the four factors of production of resource inputs including

A

Land
Labour
Capital
Enterprise

27
Q

The mix of resources can be

A

Capital intensive

Labour intensive

28
Q

Describe capital intensive

A

Uses a high proportion of capital such as machinery in the production of a good or service

29
Q

Describe labour intensive

A

Which uses a relatively high proportion of labour

30
Q

Capital intensive advantages

A

Increased productivity

Improved quality and speed

Reduced labour costs

Greater opportunities for economies of scale (the benefits to a business of producing on a large scale that lead to a fall in unit costs)

31
Q

Capital intensive disadvantages

A

High investment outlay

Lack of human initiative

Greater resistance to change by workforce e.g. retraining to use new equipment

32
Q

Labour intensive advantages

A

Often cheaper, especially when produced in low wage locations

Workforce can easily adapt to change, especially if multi-skilled

Continuous improvement through workforce can benefit the firm e.g. new ideas

Government funding often available to protect jobs in the economy

33
Q

Labour intensive disadvantages

A

oIndustrial relations can be a problem e.g. strikes

oLack of skilled workers in some industries

oHRM costs can be very high e.g. recruitment, selection and training