37. Production, productivity & efficiency

Question 1

Advantages of job production:

Answer 1

• 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

Question 2

Disadvantages of job production:

Answer 2

• 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 3

Advantages of batch production:

Answer 3

• Workers are likely to specialise in one precess
• Unit costs are lower because output is higher
• Production is flexible since different orders can be met
• More use of machinery is made

Question 4

Disadvantages of batch production:

Answer 4

• More complex machinery may be needed
• Careful planning and co-ordination is needed
• Less motivation because workers specialise
• If batches are small, costs will still be high
• Money may be tied up in work- in-pogress

Question 5

Advantages of flow production:

Answer 5

• 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

Question 6

Disadvantages of flow of production:

Answer 6

• 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 7

Advantage sof cellular manufacturing:

Answer 7

• Floor space is released because cells use less psace than a flow production line
• Product flexibility is improved
• Lead times are cut
• Movement of resources and handling time is reduced
• There is less work-in-progess
• Teamworking is encouraged
• There may be a safer working environment and more efficient maintenance

Question 8

Factors influencing productivity:

Answer 8

• Specialisation and the division of labour
• Education and training
• Motivation of workers
• Working practices
• Labour flexibility
• Capital productivity

Question 9

Ways to improve productivity

Answer 9

• Improving labour productivity:
  · Increase specialisation
  · Improve motivation
  · Improve training
  · Increase labour flexibility
• Improving capital productivity:
  · Improve service and maintenance
  · Update and replace old technology
  · Ensure that operatives are well trained

Question 10

Factors influencing efficiency:

Answer 10

• Introducing standardisation
• Outsourcing
• Relocating
• Downsizing
• Delayering
• Investing in new technology
• Lean production
• Kaizen
• Just-in-time production

Question 11

batch production

Answer 11

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

Question 12

capital intensive

Answer 12

production methods that make more use of machinery relative to labour

Question 13

capital productivity

Answer 13

the amount of output each unit of capital (e.g. one machine) produces

Question 14

cell production

Answer 14

involves producing a family of products in a small self-contained unit within a factory

Question 15

division of labour

Answer 15

specialisation in specific tasks or skills by an individual

Question 16

downsizing

Answer 16

the process of reducing capacity, usually by laying off staff

Question 17

efficiency

Answer 17

producing a level of output where average cost is minimised

Question 18

first-mover

Answer 18

a company that is the first to sell a new product or provide a new service, when there are no other competing companies

Question 19

flow production

Answer 19

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

Question 20

job production

Answer 20

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

Question 21

kaizen

Answer 21

a Japanese term that means continuous improvement

Question 22

labour-intensive

Answer 22

production methods that make more use of labour relative to machinery

Question 23

labour productivity

Answer 23

the amount of output each unit of labour (e.g. one worker) produces

Question 24

lean production

Answer 24

an approach to operations that focuses on the reduction of resource use

Question 25

outsourcing

Answer 25

getting other people ow businesses (subcontractors) to undertake work that was originally done in-house, often to reduce costs

Question 26

Production

Answer 26

the transformation of resources into goods or services

Question 27

productivity

Answer 27

the output per unit of input per time period

Question 28

specialisation

Answer 28

in business, the production of a limited range of goods

Question 29

standarisation

Answer 29

using uniform resources and activities or producing a uniform product