chp 18: Production of goods and services

Question 1

Managers of the operation department

Answer 1

1) Factory Manager

2) Purchasing Manager

3) Research and Development manager

Question 2

Productivity (definition+formula)

Answer 2

Productivity is the output measured against inputs used create it over a period of time

Productivity = Output/ Quantity of Input

Question 3

Ways to increase productivity

Answer 3

1) Provide training
2) Motivate employees
3) Improve inventory control
4)Improve quality of product
5) Automation

Question 4

Benefits of high productivity

Answer 4

1) Reduced input for same amt of output

2) Lower unit costs/Average costs

3) Fewer workers so lower wage costs

4) Higher wages for existing workers so more motivation

Question 5

Why businesses hold inventory

Answer 5

1) To maintain production

2) To cater to unexpected demand

Question 6

Lean production

Answer 6

Lean production is a term for techniques used to cut down on waste thus increasing efficiency

Question 7

Types of Lean Production

Answer 7

Kaizen

Just-in-time inventory

Cell production

Question 8

Kaizen

Answer 8

Definition: Kaizen is the Japanese term for “continuous improvement” through the elimination of waste

Question 9

Benefits of Kaizen

Answer 9

1) Increase in productivity

2) Reduced amt of space needed for the production process

3) Work in progress reduced

4) Jobs may be combined