Increasing Efficiency & Productivity

Question 1

What is productivity measured as?

Answer 1

Output per worker in a given time period

Question 2

What is efficiency about?

Answer 2

Getting more output from a given amount of inputs

Question 3

What does labour productivity measure?

Answer 3

How much each employee produces

Question 4

How do you calculate labour productivity?

Answer 4

Output per period divided by number of employees

Question 5

What can improving productivity improve?

Answer 5

Efficiency of a business

Question 6

What are 3 ways to increase labour productivity?

Answer 6

Improving motivation
Training
New technology

Question 7

What can encouraging workers to produce more by offering bonuses do?

Answer 7

Quality suffers or more waste is produced

Question 8

What will businesses base their decision of labour productivity on?

Answer 8

Value added and efficiency

Question 9

What is lean production?

Answer 9

An efficient form of production that keeps waste to a minimum

Question 10

What can inefficient production methods increase?

Answer 10

Costs

Question 11

What does lean production methods include?

Answer 11

JIT, JIC and Kaizen

Question 12

What does JIT mean?

Answer 12

Just in time

Question 13

What does JIT production keep stock levels like?

Answer 13

Very low

Question 14

What does JIT production aim to do?

Answer 14

Reduce waste of materials and productions by having as little stock as possible

Question 15

What is JIT based on?

Answer 15

Very efficient stock control

Question 16

What is Kanban?

Answer 16

The JIT system of triggering repeat orders

Question 17

What are 2 disadvantages of JIT production?

Answer 17

Customers can’t be supplied during production and suppliers have to be reliable

Question 17

What are 3 advantages of JIT production?

Answer 17

Storage costs reduced
Cash flow improved
Less waste

Question 18

What does time-based management mean for companies?

Answer 18

Have to be flexible

Question 19

What does the time-based management approach aim to do?

Answer 19

Reduce wasted time in the production process

Question 20

What does time-based management depend on?

Answer 20

Flexible production facilities

Question 21

What are 3 advantages of time-based management approach?

Answer 21

Reduces lead times
Machinery with more than 1 function offers a varied range
Drive innovation

Question 22

What are lead times?

Answer 22

The time between a customer placing an order and taking delivery

Question 23

What are 3 advantages of technology?

Answer 23

Increased productivity and quality
Reduced waste

Question 24

What are 3 disadvantages of technology?

Answer 24

Initial costs are high
Increased need for staff training
Updates

Question 25

What does a capital-intensive firm use?

Answer 25

More machinery and few workers

Question 26

What are 3 advantages of Capital-intensive production?

Answer 26

Cheaper than manual labour
Able to work 24/7
Easier to manage

Question 27

What are 3 disadvantages of Capital-intensive production?

Answer 27

High set up costs
Breaking down
Fear of being replaced

Question 28

What does a labour intensive firm use?

Answer 28

More workers and less machinery

Question 29

What are 3 advantages of labour-intensive production?

Answer 29

People can be retrained
Cheaper
Can solve problems

Question 30

What are 3 disadvantages of labour-intensive production?

Answer 30

Harder to manage
Unreliability
Labour costs as a % of turnover are high