4.1 Production of goods and services

Question 1

What is production?

Answer 1

Making a product or service to satisfy consumer wants and needs.

Question 2

What are the four factors of production?

Answer 2

Land, Labour, Capital, Enterprise.

Question 3

What is added value?

Answer 3

The difference between the cost of inputs and the value of the output.

Question 4

What is labour-intensive production?

Answer 4

When more workers than machines are used

Question 5

What is capital-intensive production?

Answer 5

When more machinery than workers is used

Question 6

What is the role of the operations department?

Answer 6

Transform inputs into outputs for consumers.

Question 7

Who is responsible for product quality and quantity in a factory?

Answer 7

Factory Manager.

Question 8

Who is responsible for providing materials and equipment?

Answer 8

Purchasing Manager.

Question 9

Who handles design and employee training for new products?

Answer 9

Research and Development Manager.

Question 10

What is productivity?

Answer 10

A way of measuring a business’s efficiency.

Question 11

What is the difference between production and productivity?

Answer 11

Production is making goods, productivity is how efficiently it’s done.

Question 12

What is the formula for productivity?

Answer 12

Productivity = Quantity of output / Quantity of input.

Question 13

What is the formula for labour productivity?

Answer 13

Labour productivity = Output / Number of employees.

Question 14

List 3 ways to increase productivity.

Answer 14

Automation, improved labour skills, better inventory control.

Question 15

List 3 benefits of increasing efficiency.

Answer 15

More output, lower unit costs, improved competitiveness.

Question 16

Why do businesses hold inventory?

Answer 16

To meet changes in demand and avoid production delays.

Question 17

What is buffer inventory?

Answer 17

Extra inventory kept to deal with uncertainty in demand and supply.

Question 18

What is lean production?

Answer 18

Techniques to reduce waste and improve efficiency.

Question 19

List 3 types of waste in production.

Answer 19

Overproduction, waiting, defects.

Question 20

List 3 benefits of lean production.

Answer 20

Lower storage costs, quicker production, higher profits.

Question 21

What are 3 types of lean production?

Answer 21

Kaizen, Just-in-Time (JIT), Cell production.

Question 22

What is Kaizen?

Answer 22

A Japanese method meaning continuous improvement.

Question 23

How is Kaizen implemented?

Answer 23

Through regular worker meetings to solve problems.

Question 24

Give 2 advantages of Kaizen.

Answer 24

Higher productivity, less space needed.

Question 25

What is Just-in-Time (JIT)?

Answer 25

A method where inventory is received only when needed.

Question 26

Give 2 benefits of JIT.

Answer 26

Lower storage costs, improved cash flow.

Question 27

What is a drawback of JIT?

Answer 27

Relies on reliable suppliers and efficient ordering.

Question 28

What is cell production?

Answer 28

Production is split into units, each making a part of the product.

Question 29

Give 2 benefits of cell production.

Answer 29

High motivation, efficient production.

Question 30

What are the 3 main methods of production?

Answer 30

Job, Batch, and Flow production.

Question 31

What is job production?

Answer 31

Making products one at a time for specific customers.

Question 32

Give 1 benefit and 1 limitation of job production.

Answer 32

Benefit: Meets exact needs. Limitation: Expensive and time-consuming.

Question 33

What is batch production?

Answer 33

Making products in groups before switching to another.

Question 34

Give 1 benefit and 1 limitation of batch production.

Answer 34

Benefit: Variety and flexibility. Limitation: High setup and storage costs.

Question 35

What is flow production?

Answer 35

Making large quantities in a continuous process.

Question 36

Give 1 benefit and 1 limitation of flow production.

Answer 36

Benefit: High output. Limitation: Boring for workers, high setup cost.

Question 37

What factors influence the method of production chosen?

Answer 37

Product nature, market size, demand, business size.

Question 38

What is automation?

Answer 38

Machines controlled by computers for mechanical tasks.

Question 39

What is mechanisation?

Answer 39

Machines operated by people for complex or dangerous work.

Question 40

What is CAD?

Answer 40

Computer-Aided Design – software to create detailed product designs.

Question 41

What is CAM?

Answer 41

Computer-Aided Manufacturing – computers control machinery.

Question 42

What is CIM?

Answer 42

Computer-Integrated Manufacturing – combining CAD and CAM.

Question 43

What is EPOS?

Answer 43

Electronic Point of Sale – barcodes scanned, inventory updated.

Question 44

What is EFTPOS?

Answer 44

Electronic Funds Transfer Point of Sale – connects checkout to bank.

Question 45

What is contactless payment?

Answer 45

Payment by tapping a device to transfer purchase info.

Question 46

Give 2 advantages of using technology in production.

Answer 46

Higher productivity, better quality.

Question 47

Give 2 disadvantages of using technology in production.

Answer 47

High cost, risk of unemployment.

Question 48

How does technology improve motivation?

Answer 48

Workers get training and better job satisfaction.

Question 49

What is a risk of relying on technology?

Answer 49

It becomes outdated quickly and needs replacing.