2D

Question 1

What is productivity

Answer 1

Is the output per input per hour

Question 2

What is production

Answer 2

Is the total amount of output that is produced in a time period

Question 3

4 methods of production

Answer 3

Job, batch, flow, cell

Question 4

What is job production and p and n

Answer 4

Is where one single product is made at a time, products are made for a specific client or customer
p-Bespoke, unique, higher prices charged, more skilled laborers
n- Skilled labour is expensive, hard to speed up if demand increases.

Question 5

What is batch production and p and n

Answer 5

This is the production method used when a business wants to make more than one item at a time. Goods are made in batches and can be switched over to make something diff on the same production line.
p- more productive, less capital will be required to set up the process compared to flow production, Flexible so different quantities can be produced allowing them to meet different sized orders.
n- Lots of stock- waste, less efficient than flow

Question 6

What is flow production p and n

Answer 6

Flow production uses production lines with continuous movements of items through the process. Many mass-produced products are produced this way such as coke.
p-economies of scale, more productive
n-not as much flexibility and expensive machinery

Question 7

What is cell production p and n

Answer 7

Cell production is dividing up a production line into sperate self-contained areas that are each responsible for a section of work.
p-Wastage through movement of materials is reduced. Time waiting for stock to arrive is reduced. Bottlenecks in the production process are reduced, increased motivation.
n- Any break down of machinery will stop production, expanding may be difficult due to lack of space.

Question 8

Ways to improve productivity

Answer 8

Productivity bonus, productivity deal, investment in new machinery and equipment, staff training

Question 9

What is a productivity bonus

Answer 9

Offering employees a bonus for increased productivity. Will increase costs for business so may not maximize efficiency.

Question 10

What is a productivity deal

Answer 10

Union in a business may negotiate a productivity deal for all staff

Question 11

Factors influencing efficiency

Answer 11

Firms that have a higher output per employee are more efficient, this can lead to comp advantage as prices per item made are lower than the competition.- the business can become a market leader through low prices or enjoy high profits due to lower production costs. An efficient factory production line will be producing the right scale of products to achieve economies of scale and avoid diseconomies of scale.

Question 12

What is capacity

Answer 12

The highest sustainable level of production that can be achieved with the current level of resources

Question 13

What is capacity utilisation

Answer 13

current output/maximum possible output times 100

Question 14

Why is capacity important

Answer 14

-Businesses don’t want resoruces sat idle - fc increased
-Ensuring that resources are used efficiently will help a business to maximize profits
-Unwise for business to be operating at full capacity all the time, as some downtime is required for maintenance, staff morale will also suffer if they are constantly working flat out. Can look for more profitable oppotunities

Question 15

How to increase capacity

Answer 15

ST- Change shift patterns, extend opening hours, employ temporary staff, use overtime
LT- Expands the business, invest in more/better equipment

Question 16

How to decrease capacity

Answer 16

ST-stock pile, reduce prices
LT-Redundances, closing branches

Question 17

Maximum stock level

Answer 17

most stock a firm is able or willing to hold

Question 18

Re-order level

Answer 18

The stock level at which a new order will be sent to supplier

Question 19

Buffer stock

Answer 19

The stock is held in reserve for unexpected events.

Question 20

Lead time

Answer 20

The time between an order being placed, and the goods being received

Question 21

Holding too much stock

Answer 21

-Costs money, storage costs, higher insurance.
-Increased risk of shrinkage
Increased risk obsolescence and wastage
-could create a cash flow problem.

Question 22

Not holding enough stock

Answer 22

-May lead to a loss of sales, which in turn can lead to a loss of customers.
-Could damage the reputation of no business-leading to a loss of goodwill
and longer lead time for customers.

Question 23

What is lean management

Answer 23

Based around the idea of doing more with less- in other words minimising waste

Question 24

Ways of achieving lean management

Answer 24

reduce lead times of production- reduces the wait that customers have between ordering and receiving products- which increases customer satisfaction, reduces the need to hold stocks-since the business can respond to market changes more quickly

Question 25

What is JIT stock management

Answer 25

A method of managing production that involves holding minimum stocks in order to maximise efficiency

Question 26

What is JIT stock management?

Answer 26

A method of managing production that involves holding minimum stocks in order to maximize efficiency. Components are delivered just as they are required so the cost of holding stocks are removed.

Question 27

P and n of JIT management

Answer 27

p- improved cash flow -money is not tied up in stocks. Less risk of wastage, shrinkage, and obsolescence. More production space is available. Better relationships with suppliers.
n-Very dependent on suppliers, increased administration costs since orders are made.

Question 28

What is quality

Answer 28

Minimum acceptable standard- so can affect consumers purchasing decisions. There is usually a trade-off between price and quality- higher quality, higher prices.

Question 29

What does high-quality lead to

Answer 29

Increased customer loyalty, fewer complaints, larger product life cyle, reduced promotional costs, charge higher prices.

Question 30

What does low-quality lead to

Answer 30

Poor reputation, poor product placement, shorter product life cycles, higher promotional costs, having to reduce prices.

Question 31

What is total quality management

Answer 31

Development of a new culture within a business- Everyone is considered to be responsible for quality and different departments in business are treated as internal customers

Question 32

What is quality assurance

Answer 32

Prevents problems in the first place, can be achieved through TQM

Question 33

What can quality assurance be achieved through

Answer 33

Quality circles, Benchmarking and kaizen.

Question 34

What are quality circles

Answer 34

Created in Japan, small group of workers meet to discuss quality in business.- Depends how well invested these people are in the business.

Question 35

What is Benchmarking

Answer 35

Comparing to other operations who are better and copying.

Question 36

What is kaizen

Answer 36

Means continuous improvement. Believes small and regular change is good. Drastic but infrequent change is bad.