4.1 Production

Question 1

Production

Answer 1

Provision of a product or service to satisfy consumer wants and needs. This process involves adding value to a product.

Question 2

Value Added

Answer 2

Value added to the raw material to customize them for the customers to satisfy their needs and wants and add to their value

Question 3

Productivity

Answer 3

Output measured against input

= output (over given period of time) / no of employees

Question 4

Methods of production

Answer 4

Job
(product made specifically for order, all products are diff and may or not be repeated)

Batch
(Similar product made in blocks/batches/bulk. A certain no of a product is made, then a certain no of another product is made. Eg cookie)

Flow
(Large products of only one product are produced in continuous process)

Question 5

Methods of production

Answer 5

Job
(product made specifically for order, all products are diff and may or not be repeated)
Eg - Handmade

Batch
(Similar product made in blocks/batches/bulk. A certain no of a product is made, and then a certain no of another product is made.)
Eg - cookie

Flow
(Large products of only one product are produced in a continuous process)
Eg - Buttons

Question 6

Advantages of Job production

Answer 6

High-profit margins
Customer Loyalty
Credibility among employees
Job Satisfaction (Mostly manual, not bore)
Brand recognition

Question 7

Disadvantages of Job Production

Answer 7

Time-consuming
Takes more skills
Low productivity (mainly man labour)
Small consumer base (ppl who buy product)

Question 8

Advantages of Batch Production

Answer 8

More productivity
Faster
Cheaper to produce
More sales (due to more productivity)
Requires less practice (due to machines)

Question 9

Disadvantages of Batch Production

Answer 9

High capital investment (initial cost)
Less job satisfaction (employee bored)
Lacks uniqueness
Standard Quality
More competition
Hard to get brand loyalty
Equipment manufacture halts production
(unlike job production)

Question 10

Advantages of Flow production

Answer 10

Bulk production
Faster to produce
Can target large market
B to B (business to business)
B to C (business to customer)
Economies of scale
Consistent quality
Less labour (faster production, less wages, no motivation issues)

Question 10

Advantages of Flow production

Answer 10

Bulk production
Faster to produce
Can target large market
B to B (business to business)
B to C (business to customer)
Economies of scale
Consistent quality
Less labour (faster production, less wages, no motivation issues)

Question 11

Disadvantages of flow production

Answer 11

Machine issue, production halts
Heavy capital investment
Average quality
Hard to create USP
Lack of variety

Question 12

Lean Production

Answer 12

This technique is used by business to cut down on waste and therefore increase efficiency. It tries to reduce the time it takes for a product to be developed and become available in the shops for sale, so that it is as quick as possible.

Question 13

Methods of lean production

Answer 13

Kaizen
Just-in –time production technique
Cell production
Kanban

Question 14

Kaizen

Answer 14

Kizen means continuous improvement in Japanese. It focuses on the elimination of waste. The improvement does not come from new technology but from ideas from the workers.

Question 15

Advantages of Kaizen

Answer 15

Increased productivity
Work in progress is reduced
Reduced amount of space needed for production process.

Question 16

Just-in-time production

Answer 16

This production method that involves reducing or virtually eliminating the need to hold stocks of raw materials or unsold stocks of the finished product. Supplies arrive just at time they are needed.

Question 17

Cell production

Answer 17

Cell production is where the production line is divided into separate, self-contained units (cells), each making an identifiable part of the finished product, instead of having a flow or mass production line.

Question 18

Kanban production

Answer 18

It is a system of ordering that is used alongside JIT production. It often operates by having two component bins, one on the production line and one being made ready.