Paper 1 Divider 8+9 Flashcards
1
Q
Capacity
A
The maximum level of output that a business can produce in a given period of time
-depends on floor space, machinery, labour
2
Q
Operating at full capacity
A
- staff motivation increase as employees have greater job security
- might put pressure on staff, leading to absenteeism or mistakes
3
Q
Efficiency
A
How effective a business uses its resources
4
Q
Labour productivity
A
- how much output a worker produces over a given period of time
- its a measure of labour productivity
- increasing labour productivity increases effiency
5
Q
Labour productivity adv
A
Increase it by investing in modern tech, increase employee training and improve staff motivation
6
Q
Labour productivity disad
A
Not always as the output needs to be one of the same quantity or it is wasteful
7
Q
Lean production
A
- focuses on removing waste from operational processes in order to reduce costs, save time and produce more
- reduces the amount of stock
- values staff in the production process
8
Q
Lean production adv
A
- reduces the amount of stock
- improves quality
- higher labour productivity
- reduces defects
- reduces time taken to develop new products
9
Q
Lean production disad
A
- no back up if there are natural disasters
- dependent on suppliers for delivery and quality
- cost of tech
10
Q
Capacity utilisation
A
- the proportion of maximum possible output that is currently being used
- needs to increase output or reduce maximum possible output if its low
- improve it by increasing demand risks, cut capacity, increase demand risks, cut capacity risks
- can expand by buying more machinery and work overtime
11
Q
Technology
A
- computer and hardware system to handle business data
- CAD,CAM,3D printing, internet, robotics
- can be used with communication with suppliers, internet and email
12
Q
Tech adv
A
- reduces costs
- improves quality
- better working conditions
- increase customer satisfaction
- increases productivity
13
Q
Tech disad
A
- high costs
- motivation
- breakdowns
