production and investment T7

Question 1

what is production

Answer 1

process of creating, manufacturing or improving goods and services

Question 2

what is the aim of production

Answer 2

to add value to the inputs to create a profitable output

Question 3

what are business resources

Answer 3

capital enterprise land labour

Question 4

what is specification

Answer 4

resources are exclusively used to make a unique range of products

Question 5

advantages of using specification

Answer 5

resources concentrated where they are most productive
average cost of production lower
workers increased output - due to reps

Question 6

disadvantages of using specification

Answer 6

repetitive doing same job decreases motivation
harder to adapt to change
increases absences lowers quality of work

Question 7

what is job production

Answer 7

production of single items or services, these jobs are unique and usually specially requested by customers

Question 8

what are the benefits of job production

Answer 8

unique product that exactly matches requirement of customer
employees have a higher level of job satisfaction
easier to add value to product

Question 9

difficulties of job production

Answer 9

have large range of equipment and employees with different skills can be expensive
harder to cost up accurately
very hard to benefit from EOS

Question 10

what is batch production

Answer 10

used when there is a set procedure and stages that the production process needs to go through

Question 11

benefits of batch production

Answer 11

system can produce in large quantities
faster method than job
can benefit from EOS

Question 12

drawbacks of batch production

Answer 12

needs storage space for products waiting to go into next process
not great product variation
increased downtime between batches decreasing output

Question 13

what is flow production?

Answer 13

task is worked on continuously as it flows from one production stage to the either

Question 14

what are the benefits of flow production

Answer 14

goods and made and sold quickly
can produce in large numbers
benefit from EOS

Question 15

drawbacks of flow production?

Answer 15

must be standardised can’t change for customers
if production line stops whole process stops
machines need good maintenance

Question 16

what is lean production?

Answer 16

technique that uses resources as efficient as possible to achieve desired quality with min. waste

Question 17

advantages of lean production

Answer 17

higher quality less defects
more employee involvement = motivation
lower cost (less material needed)

Question 18

disadvantages of lean production

Answer 18

constant focus on improvement can cause too much stress
requires long term commitment

Question 19

what is cell production?

Answer 19

form of lean, works on teamwork with groups taking responsibility for different parts of production process

Question 20

benefits of cell production

Answer 20

greater motivation - variety
opportunities for job rotation
workers become multi skilled

Question 21

drawbacks of cell production

Answer 21

has to trust the other groups
recruitment and training must support this approach
company may need to invest in new materials

Question 22

what is productivity?

Answer 22

the greater the output in relation to input the higher the productivity level

Question 23

how is productivity calculated?

Answer 23

output/input

Question 24

how is labour productivity calculated?

Answer 24

output(units)/no. workers

Question 25

how is material productivity calculated?

Answer 25

output/cost of raw materials

Question 26

how is total factor productivity calculated?

Answer 26

value of output(output x price) / cost of capital and labour used

Question 27

how can machinery affect productivity?

Answer 27

modern machinery can maximise effeciency staff need to be trained on how to use for fewer defects

Question 28

drawbacks of using machinery

Answer 28

initial purchase is expensive maintenance costs training costs

Question 29

what is innovation?

Answer 29

process of producing something new from a new idea which will lead to increase productivity

Question 30

what is research and development?

Answer 30

refers to wide range of activities designed to gather knowledge in order to improve products

Question 31

why would a business undertake investment?

Answer 31

ensure use of modern equipment benefit from EOS improve efficiency

Question 32

why would a business undertake research and development?

Answer 32

gain competitive advantage allows business to build strong brand recognition leads to innovation of product specification

Question 33

what factors affect innovation?

Answer 33

finance position in market - may need to increase competitiveness costs - innovative tech is required in order to cut costs

Question 34

advantages of innovation

Answer 34

improved quality ability to enter new markets reduces costs

Question 35

disadvantages of innovation?

Answer 35

uncertain demand for new product competition- rivals may want to join if product is generic copies can be made

Question 36

advantages of research and development?

Answer 36

allows for increase in globalisation gain knowledge on tech advancements

Question 37

disadvantages of research and development?

Answer 37

cost - can be expensive risk - no guarantee of success other business' may copy new ideas

Question 38

what are the processes involved in research and development?

Answer 38

market research - ensure there will be demand for product brainstorming - method that generates ideas fast value analysis - consideration of products function, cost and aesthetic

Question 39

what factors influence research and development?

Answer 39

if product is in highly competitive market R&D expenditure will be higher the more sophisticated the product is the more frequent R&D will need done state of economy - if in recession business will cut back costs R&D being one