P2- Hw 17 Production, Productivity and Efficiency

Question 1

Job production

Answer 1

Involves firms producing items that meet specific requirements of customers

• one off, unique products
• made one at a time
  E.g. wedding cake, wedding dress

Question 2

Advantages of job production

Answer 2

• customer requirements and changes can be handled
• usually higher quality
• can charge higher prices
• more motivation- job satisfaction

Question 3

Job production disadvantages

Answer 3

• cost per unit higher
• labour intensive (higher labour costs)
  Close consultation with client
• reliant on high skill

Question 4

Batch production

Answer 4

Where products are made in groups with a series of tasks performed on each group

E.g. houses, cupcakes, clothes

Question 5

Advantages of batch production

Answer 5

• cost savings from bulk buying
• allows customers some choice
• specialist staff at each stage
• firms can handle unexpected orders

Question 6

Disadvantages of batch production

Answer 6

• takes time to switch between batches
• maintain higher stocks of raw material
• tasks may become repetitive and boring
• size of batch dependent on capacity allocated

Question 7

Flow production

Answer 7

Producing as many as possible of an identical product continuously on an assembly line

Question 8

Advantages of flow production

Answer 8

• can manufacture on large scale

Question 9

Disadvantage of flow production

Answer 9

Takes long time to set up assembly line

Question 10

Cell production

Answer 10

When a group is given responsibility for one part of production

Question 11

Advantage of cell production

Answer 11

• increases quality and motivation of staff

Question 12

Disadvantage of cell production

Answer 12

Staff must be well trained or it won’t work

Question 13

Productivity

Answer 13

The ratio between output and input

Question 14

Productivity formula

Answer 14

Units of output
————————
Units of input

Question 15

Production

Answer 15

The transformation of resources into products

Question 16

Factors affecting productivity

Answer 16

• technology, skills needed, capital needed

Question 17

Efficiency

Answer 17

Producing units at the lowest possible cost

Question 18

Labour intensive production

Answer 18

When a product is mainly produced using people rather then machines

Question 19

Capital intensive production

Answer 19

When the processes require a lot of capital

Question 20

Job production

Answer 20

involves firms producing items that meet the specific requirements of the customer

Question 21

Batch Production

Answer 21

where products are made in groups with a series of tasks performed on each group

Question 22

Flow production

Answer 22

producing as many as possible of an identical product continuously on an assembly line

Question 23

Cell production

Answer 23

when groups of workers are given responsibility for a part of production

Question 24

Productivity

Answer 24

output per unit of input

Question 25

Competitiveness

Answer 25

when two or more businesses are selling similar products and therefore targeting the same customers; which one can beat the other

Question 26

Efficiency

Answer 26

producing units at the lowest possible price

Question 27

Labour intensive production

Answer 27

when making a product mostly uses people rather than machinery

Question 28

Capital intensive production

Answer 28

when making a product uses a lot of capital