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business > chapter 18 - production of goods & services > Flashcards

chapter 18 - production of goods & services Flashcards

1
Q

definition of:

production

A

effective management of resources in producing goods and services

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2
Q

role of operative department

A
  • use resources in a cost-effective manner
  • manage inventory effectively
  • produce the required output to meet customers expectations
  • meet quality standard
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3
Q

definition of:

productivity

A

a measure of efficiency of the inputs used in production process over a period of time
formula= quantity of output/ quantity of input

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4
Q

definition of:

labour productivity

A

a measure of efficiency of employees in producing output

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5
Q

how to increase productivity?

A
  • training
  • introduce automation
  • improve employee motivation
  • improve quality control
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6
Q

definition of:

inventory-management

A

firms hold inventory of raw materials, goods that are not completed yet and finished goods

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7
Q

definition of:

lead time

A

time taken for supplies to arrive

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8
Q

explain max inventory level

A

when inventory gets to a certain point (reorder level), firms reorder to bring inventory level to maximum level

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9
Q

definition of:

buffer inventory level

A

the level of inventory a firm should hold at the very minimum to meet any unexpected demands from customers

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10
Q

definition of:

lean production

A

the various techniques a firm can adapt to reduce wastage and increase efficiency

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11
Q

types of wastages

A
  • motion
  • inventory
  • over-production
  • transportation
  • over processing
  • waiting
  • defects
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12
Q

benefits of lean production

A
  • less storage of raw materials, components and finished goods (save cost)
  • quicker production of goods and services
  • no need to repair faulty goods
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13
Q

definition of:

kaizen

A

a Japanese term for continuous improvement through elimination of waste; it aims to increase efficiency and reduce wastage by getting workers to work together and suggest solutions

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14
Q

benefits of kaizen

A
  • increased productivity
  • less risk of accident - better motion - improved floor layout
  • reduce amount of space needed for production
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15
Q

definition of:

just-in-time

A

this technique eliminates to hold inventory by ensuring that the supplies arrived just in time when needed for production

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16
Q

benefits of just in time

A
  • reduce storage cost
  • no warehouse needed
  • finished goods immediately sold off; cash flows in quickly
17
Q

definition of:

cell production

A

production line is divided into separate self-contained units each making a part of finished good

18
Q

benefits of cell production

A
  • improve morale

- able to concentrate on one part alone

19
Q

definition of:

job production

A

products are made specifically to order, customised for each customer

20
Q

advantages of job production

A
  • quality meets customers exact requirement and expectation
  • workers have more varied jobs with each order diff
  • flexible method of production
21
Q

disadvantages of job production

A
  • skilled labour expensive to hire
  • high cost - diff materials for diff orders
  • expensive to fix any faults
22
Q

definition of:

batch production

A

a large quantity of products are made then a quantity of another item will be produced

23
Q

advantages of batch production

A
  • flexible way or working - production can be easily switched
  • increase work variety
  • if one machinery breaks down, other products can still be made
  • more variety, increase consumers choice
24
Q

disadvantages of batch production

A
  • machinery needs to reset, production process delayed
  • expensive to move finished goods to the next production stage
  • lots of raw material needed for diff product batches; expensive
25
Q

definition of:

flow production

A

large quantities of products are produced in a continuous process in the production line

26
Q

advantages of flow production

A
  • economies of scale
  • capital intensive - reduce labour cost - increase efficiency
  • high output of standardised products
  • quick and efficient
27
Q

disadvantages of flow production

A
  • high cost to set up and maintain capital
  • boring system for workers - low job satisfaction
  • if one machinery breaks down, production process disrupted
28
Q

factors affecting which production method to use

A
  • nature of products
  • nature of demand
  • size of market
  • size of business
29
Q

advantages of technology with production

A
  • greater productivity
  • standardised output produced
  • better quality
  • greater job satisfaction - boring routine jobs done by machine
30
Q

disadvantages of technology with production

A
  • high capital cost for set up and maintenance
  • unemployment rise
  • expensive and time consuming as machine becomes outdated
  • takes time for employees to adjust to new tech

business (21 decks)

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